Everything Everywhere bringing its new 4G offer to market under a new brand could put pressure on Orange, analysts have claimed.
On Tuesday (21 August), Everything Everywhere was granted permission by Ofcom to liberalise its 1800MHz spectrum for 4G use. After initial reports that the operator would ditch its Orange and T-Mobile brands, Everything Everywhere said it would launch a new ‘exciting’ brand to sit alongside the two brands. Mobile understands this will relate to its 4G offer, launching later this year.
Shaun Collins, MD at CCS Insight, said any 4G service would need to be positioned as a ‘premium’ brand, which is where Orange currently operates. He said: ‘Orange becomes an increasingly difficult brand to position in a market where your natural energy will go towards promoting an LTE offer and the value brand [of T-Mobile].’
Strategy Analytics’ Phil Kendall said: ‘It’s tricky for Everything Everywhere. A new brand is probably not the best way to go but they need to establish a premium brand to go up against Vodafone and O2.’
Operators have until 11 September to respond to Ofcom’s decision, which coincides with the date that Everything Everywhere could in theory launch its 4G service. O2 and Vodafone did not rule out legal action to get the decision overturned.
Meanwhile, Everything Everywhere has sold a 2 x 15MHz chunk of its 1800MHz spectrum to Three as part of the conditions of the 2010 merger of Orange and T-Mobile.