O2 UK launches 5G network with no tariff premium

As the last UK operator to switch on its 5G network, O2 seems to be trying to make up for lost time by charging its customers no premium to switch from 4G.

The ‘new’ tariffs are the same as the old ones – i.e. you get the same amount of 5G data as you would 4G data, including an unlimited tier coming it at 40 quid a month. Initially only the following cities will have access to O2 5G and only in certain parts: Belfast, Cardiff, Edinburgh, London, Slough and Leeds. That will grow to 20 towns by the end of the year and 50 by the summer of next year.

“Today is a significant moment for our customers and our business as we switch on the O2 5G network,” said Mark Evans, CEO of Telefónica UK. “We’re launching with a range of tariffs that make it easy and fair for customers to access 5G, with flexible plans that cost no more than 4G. We’re also switching on 5G in important parts of towns and cities first, places where it will benefit customers and businesses most.

“I believe 5G is going to revolutionise the way people and businesses use mobile connectivity, unlocking huge possibilities for our economy and society. No one in the country has all the answers today, but I’m excited about getting it into the hands of our customers and working with leading partners to help shape the future of 5G for the next generation.”

Here are the tariffs, with the second one including some kind of virtual reality music service:

Custom plans along with O2 Priority are important features that resonate with its customers,” said analyst Paolo Pescatore. “These will be paramount in the future in maintaining its customer centric leadership in the U.K. Expect content to feature more prominently in the future as it seeks to broaden O2 Priority for customers.”

The decision to charge no premium for 5G seems sensible as there is little incentive for them to pay it while the network rollout is still in its infancy. Instead 5G will become table stakes over the next year or so and the usual differentiation challenges will apply. Whether or not VR music will be a significant one remains to be seen.