BT has come back onto the consumer mobile market, and has made waves with a very low priced offering that will present itself as the cheapest alternative on the market.
Those already subscribed to a BT fixed line service will be able to use a £5 a month 4G tariff, which is less than half the cheapest offering from EE, with twice the mobile data allowance.
With talks underway for BT to buy EE, experts are seeing this move as an attempt to exert control over the mobile market by having controlling stakes in the cheapest company, and a middle ground company.
Experts are suggesting that these BT broadband customers ‘special rates’ may not have too heavy an impact of the market, as BT will not be offering such cheap rates to non-broadband customers. This should help to preserve some of the value of EE, as the non-broadband prices will not undercut EE in the same way the existing customer packages will.
BT will also refrain from competing with EE on bundled handsets, where the customer pays for the phone as well as the data. These contracts have been a staple of EE customers for a while, and BT does not intend to infringe on their territory and compete unnecessarily. BT will target those who already own a handset and are looking for the best value contract without having to upgrade or purchase a new handset.
In a strong move that could seal the brand loyalty that BT values, they will be offering up to 5 members of a BT broadband household with these cheaper data prices, in a move that will ensure that whole families end up paying hundreds of pounds less on phone contracts every year. There could be some competition between BT and EE, but BT are aiming to keep it to a minimum.