Three will not increase prices for 4G services

Mobile operator Three UK has claimed it will not increase prices for 4G mobile broadband services.

Three’s comments are said to be an indication of an impending price war in the UK mobile market for next-generation services.

Many European carriers are relying on additional revenue expected from the high price of 4G to bring them out of their long-term decline.

Three has reportedly said it will offer superfast services as standard to all smartphone users with no extra fee to upgrade.

“We don’t want to limit ultra-fast services to a select few based on premium price,” Dave Dyson, chief executive of Three UK, told the Financial Times.

“The price of a gigabyte of data will decrease (with 4G), not increase, and we are pricing it with this in mind, though you won’t see us necessarily dropping our prices,” he added.

4G services are already available in the UK via the EE network, but existing tariffs were criticised, when it launched last year, for offering too little data for the price.

Three’s strategy will be a key factor in the UK 4G auction to be held this month, with some analysts believing that the company will be competing less aggressively for the most expensive bandwidth.

Three has declined to comment on the auction.