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Vodafone may not be able to hold 5G prices at current 4G level

Jasper Hart
May 21, 2019

Analysts question Vodafone’s long term 5G pricing strategy

Telecoms analysts are sceptical that Vodafone will in the long term be able to offer 5G at the same price points as 4G, something the operator has said it plans to do.

Vodafone will switch on 5G in seven UK cities on July 3. Analysts cited a range of factors that indicate a possible increase in prices for 5G data packages over 4G.

IDC associate vice president for mobility research John Delaney said: “Vodafone could come to market with bigger data bundles and charge more because of that. It doesn’t mean they’re going to cost the same as 4G.”

Analyst Paolo Pescatore, who reckons EE may try and beat Vodafone’s 5G switch-on date, said: “When you’re spending so much on acquiring new spectrum and can’t charge a significant premium for this new service, where is the money coming from? It’s not a sustainable model.”

uSwitch’s head of commercial for broadband and mobiles Ernest Doku also thinks the cost of 5G would increase prices at some point.

He said: “It would be surprising if [price-matching] were to continue to last, given the high expense of rolling out this new infrastructure – providers will be keen to cover their costs.”

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