RISING numbers of people signing up to expensive long-term smartphone contracts have boosted EE, the owner of Orange and T-Mobile, ahead of its launch of the UK’s first high-speed “4G” mobile network.
The company said 250,000 extra people had signed up to phone contracts in the July to September period, while it lost just under 400,000 pay-as-you-go customers. Since contracts tend to cost people five times more than pay-as-you-go options, mobile operators are keen to move customers onto them.
EE, like other telecoms firms, has seen revenues decline this year due to European legislation banning high roaming charges.
However, with these factors stripped out, EE saw sales rise four per cent year-on-year, while the average revenue per user climbed up from £18 a month to £18.90.
Chief executive Olaf Swantee told City A.M. that the company was seeing increased momentum ahead of the launch of the EE-branded 4G network on Tuesday.
The company was handed a boost this week when Apple announced the new iPad mini would run on its 4G network.