Mobile

EE sees further rise in demand as big companies move to 4G

Caroline Baldwin

Mobile network operator EE has seen a further rise in demand for its 4G services as its customer base increased by 889,000 to 2.9m over the last quarter.

That number includes 5,100 medium and large companies, such as Fujitsu, NEC and Europcar, that have moved onto the superfast mobile network.

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EE was the first UK MNO to offer 4G towards the end of 2012, when it launched connectivity in 10 cities. Last week, Rhyl became the 200th town to receive 4G from EE, and the operator now claims to provide coverage to 72% of the UK population.

EE says it is on target to have more than 6m 4G customers by the end of 2014.

The company’s business also continues to grow. It recorded fixed revenue growth of 12.5% year on year, and in the quarter ending 31 March 2014, it saw £1.548bn turnover (up 3.6% year on year) and £1.486bn operating revenue (1.7% up year on year).

Neal Milsom, chief financial officer at EE, said: “We signed up nearly 900,000 4G customers in a single quarter, with more than one in four new customers opting for EE’s exclusive double-speed 4GEE Extra plans. We are also further improving customer service across all channels to support our long-term growth.”

The telecoms provider said up to 50% of its Orange and T-Mobile postpaid customers are moving to 4G when renewing their contracts. It also said its average revenue per user (ARPU) is growing at 5.1% year on year, and data (non-text) revenue has grown 11 percentage points to 47% of ARPU year on year.

Almost 60% of its consumer and B2B customers are on postpaid contracts, which deliver six times higher ARPU than prepaid contracts.


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