Friday, April 27, 2012

Optus launches LTE services in Australia

Nicole McCormick, Ovum Principal Analyst, Telco Strategy

AUSTRALIA: Yesterday, Optus became the second cellco to “launch” LTE services in Australia. But Optus is not charging for its FD-LTE service and is giving dongles away for free.

“The launch to more than 1,000 business and residential customers in four regional areas is more softly, softly than I would have expected,” said Ovum senior analyst, Nicole McCormick.

“Still it is better to go to market with a clear indication on pricing than not, hence Optus’ soft launch approach. We urge caution in operators charging too high a premium for LTE services. Operators will need to be careful not to alienate high-end customers that have paid a premium by reducing LTE tariffs too quickly or drastically, as they migrate 3G users.”

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