\tBT warned it may not be able to continue charging an additional cost for 5G given tariffs announced by rivals, with the operator\u2019s executive team vowing to take decisive action to respond to competitive pressures.<\/p>\n
During its fiscal Q1 earnings call, BT Consumer CEO Marc Allera (pictured) and group CEO Philip Jansen bemoaned the 5G strategies of its market rivals.<\/p>\n
\u201cWe launched with a premium price for 5G and it looks like the market may not be able to sustain that premium because it looks like people aren\u2019t in the same position we are,\u201d Jansen said.<\/p>\n
Allera added: \u201cWith all the investment in 5G and the fact it\u2019s a faster, better network, we thought it would be logical to have a small premium for 5G, others have not seen that logic.”<\/p>\n
BT\u2019s EE was first to market with 5G in the UK at the end of May [1], but since then Vodafone UK switched on the service alongside unlimited tariffs, 3 UK announced it would not charge customers [2] extra for the new network technology, and O2 and MVNO Sky confirmed their plans to make a strong play in 5G.<\/p>\n
Market aggression
\nOutside of 5G, Allera described the telecommunications market as \u201csignificantly more competitive and aggressive than it was last year,\u201d while noting the importance of recruiting customers to premium converged fixed and mobile service BT Plus. This, he added, would likely have a positive impact on churn.<\/p>\n
Jansen used the company\u2019s earnings statement to hail progress in the first part of its financial year, including with the launch of 5G, but noted the company needed to take \u201cdecisive action\u201d to respond to short term pressures.<\/p>\n
\u201cIn building a better BT for the future we need to be even more competitive,\u201d the executive said. \u201cWe will continue to take decisive action, including on price, to further strengthen our customer propositions and market position, both to respond to any short-term market pressures and to capitalise on longer-term opportunities.\u201d<\/p>\n
During its fiscal Q1 (the three months to end-June), the company made a net profit of \u00a3505 million compared with \u00a3549 million in the same quarter of 2018. BT said the two figures were not directly comparable due to a change in accounting standards. Revenue was broadly flat at \u00a35.6 billion.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/ee-sets-5g-launch-date-puts-huawei-on-hold\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/uk-operators-make-5g-strides\/<\/p>\n","protected":false},"excerpt":{"rendered":"
BT warned it may not be able to continue charging an additional cost for 5G …<\/p>\n
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