Although this article is related to the UK's recent 4G launch nationwide, it gives a good capsule summary of the use of 4G and its limitations.
As
competition increases, the cost of 4G services will come down and operators will
offer shared data plans that will allow customers to combine all their
smartphone and tablet mobile broadband bills on a single contract.
The
arrival of 4G services in the UK may even prompt some people to consider
abandoning their fixed-line services altogether. The necessity of a fast and
reliable broadband internet connection is the only reason many people pay for a
landline, and 4G speeds promise to match and even exceed most existing
fixed-line services.
Moving
house with 4G
When
the time came for me to move house, and I was told that it would take several
weeks for a BT engineer to install my new broadband connection, I decided to
put this idea to the test, and see if I could survive for a month on 4G alone.
EE
agreed to lend me an Alcatel One Touch mobile WiFi (MiFi) dongle with the
ability to connect up to 10 devices, which I was able to set up in instantly
when I arrived in my new flat. I was supplied with an 8GB data allowance, which
costs £41 per month on a 12-month contract.
My
partner and I immediately connected several devices to the MiFi and began
browsing the web simultaneously. The browsing experience was extremely fast,
and even when we invited visitors to connect the 4G, the level of service did
not degrade.
Speed
tests using Ookla revealed that the average download speed was around 20 Mbps
and upload speed was around 11 Mbps. While this is slower than EE’s promised
average download speed of 24- 30 Mbps, it is still faster than my previous BT
connection, which provided around 9 Mbps download speeds.
As
well as browsing the web and social media, we were able to watch videos on
YouTube and stream music from Spotify without any interruptions for
“buffering”. However, the real challenge came when we decided to stream HD
video from LoveFilm Instant.
After
some initial problems, where the screen seemed to stutter and we were forced to
pause and refresh the page, the programme played fairly smoothly. There were a
few moments where the picture became pixelated, but no more frequently than
with a BT connection.
Data
caps
What
was really noticeable, though, was how quickly we chewed through our 8GB data
allowance. A 2-hour standard-definition movie is about 1.5 GB, and a 2-hour
high-definition movie is about 4 GB, so our 8 GB data allowance was gone in a
flash.
If
the data allowance is reached, the user is asked to buy a top-up data bundle,
costing £3 for 50MB, £15 for 2GB, or £20 for 4GB. It is clear that, for heavy
internet users, such as film buffs and online gamers, this could become very
expensive very quickly.
EE
does offer a 20GB package for £61 per month with a 12-month contract, or £51
per month with a 24-month contract. This would be a sufficient for most casual
users, but film buffs and online gamers would still struggle to stay within
this limit.
By
contrast, O2’s largest 12-month 4G data package is 5GB for £36 per month, with
top-up data bundles of 500MB for £6 and 1GB for £10. This means it would cost
£156 per month for 20GB of data from O2.
Vodafone’s
service is unlimited for the first three months. However, its largest 12-month
4G data package after that is 8GB for £36 per month, with top-up data bundles
of 250MB for £6. This means it would cost £332 per month for 20GB of data from
Vodafone.
To
put those numbers in perspective, BT's 40GB Infinity package costs £30.45 per
month, including line rental, while Virgin Media offers unlimited data usage
starting from £22.50 per month.
“The
capped data could be an issue at this stage for anyone trying to replace
fixed-line broadband services with 4G,” said Matthew Howett, analyst at Ovum.
“Generally
consumers don’t have a great understanding of how much data they use. Most of
us don’t use as much data as we think on our phone, but the sort of things we
do with fixed broadband - like streaming of catch-up TV and so on - uses quite
a lot of data.”
Speed
and contention
Howett
said that the browsing experience using 4G is highly influenced by the number
of other people using it at the same time. At the moment, EE’s network is
fairly empty, so the download speeds and upload speeds are very fast, but this
could change as the network becomes more congested.
Although
fixed-line networks can also slow down when they become congested,
"contention" is more of an issue for mobile networks, because the
pipes they use to deliver the data are not as fat as those used by fixed-line.
EE
recently doubled the amount of spectrum that it has allocated to 4G, and in
doing so it not only doubled the speed of its 4G service, but also reduced the
issue of contention. However, if every EE customer started using a MiFi dongle
with 6 devices attached to it, the impact on the network would be noticeable.
Meanwhile,
O2, Vodafone and Three are all limited by the amount of spectrum they won in
the 4G auction earlier this year. They do not have as much spectrum set aside
for 4G as EE at this stage, so their services are likely to be considerably
slower, and contention could be more of an issue from day one.
Drawbacks
While
my experience proved that it is possible to live on 4G alone - albeit
expensively - it is easy to see how users could run into difficulties fairly
quickly. There is no way to connect to the MiFi device using a cable, so
anything that is not WiFi-enabled cannot be used.
There
is also a limit on the number of devices that can connect to the MiFi at one
time, so large families or households with multiple devices may suffer. This
could become more of a problem as the houses themselves become connected, with
lights, heating and appliances all needing an internet connection.
Due
to restrictions on the amount of spectrum used for 4G, the difference between
peak and off-peak broadband speeds could be more pronounced, as the operators
will have to employ traffic management techniques.
Moreover,
some mobile operators might block access to certain applications, such as
Skype, or make users pay a premium to access those services, so it is important
to check whether there are any applications that cannot be used over the
network.
Finally,
it is worth noting that not having a landline means having to pay premium rates
for 0800 and 0845 numbers, which can become very expensive if you are moving
house. Ofcom has said it wants to eradicate 0845 and 0800 call charges from
mobile phones. However, the changes will not be implemented until the start of
2015 at the earliest.
Rural
broadband opportunity
In
spite of these drawbacks, mobile operators have a fantastic opportunity to
replace broadband in areas where fixed-line broadband coverage is very poor.
EE
claims that its 4G service will cover 98 per cent of the population by the end
of 2014, while O2 has an obligation to provide 98 per cent of the population
with a 2Mbps service by 2017, as part of the terms of the 4G auction.
EE
has so far focused on towns and cities, and other operators are expected to do
the same when they roll out their 4G services, in order to attract as many
subscribers as possible. However, EE has been trialling its 4G broadband
service in rural parts of Cumbria, and Three has also expressed a desire to
serve rural areas of the UK.
When
4G does roll out across the countryside, it is likely to offer a better service
than fixed-line in many areas, where people still struggle to get 2Mbps. In
these cases 4G could be a good option for consumers, as long as mobile
operators bring the prices down.
"Our
4G footprint will pretty closely match our 2G footprint and, as such, there
will be data services brought to parts of rural Britain where people have never
had mobile data services before," said Paul Ceely, head of network
strategy at EE.
"I
don’t think we would advocate shifting entire regions of fixed onto mobile. If
you’ve got access to superfast broadband in your area, then we’d probably
advocate that you continue to use that. But in those areas where it’s hard to
get fixed, people should give it due consideration."
Ceely
added 4G could also be a good option for individuals who do not want a
long-term contract commitment, like university students or other people who are
only living in a certain place for a short amount of time.
"We
have a number of examples of businesses benefitting too – a construction
company that used to have to wait an average of 30 days for broadband installation
when they arrived at a site, but now they can set up the moment they arrive
because they take mobile broadband from EE," he added.
4G
or not 4G?
The
question is not so much whether it is possible to live on 4G, but whether it is
really a practical solution. This experiment would currently be impossible for
40 per cent of the population, and the 60 per cent that does have access to 4G
mobile broadband needs to think carefully about the implications of abandoning
fixed line.
Connectivity
is an increasingly important part of our lives, and we are less and less
willing to accept limitations on our online activity. As the internet has
evolved, fixed-line operators have adapted their networks to meet consumer
needs, but mobile networks were never built to carry vast quantities of data,
and this continues to be a problem for operators.
The
prohibitively high cost of large 4G data packages is part of the fallout from
this, and it is hard to see how mobile operators will bring down prices without
imposing more limitations on their networks - particularly while the national
rollout is underway.
Once
4G is established, however, and operators are forced to differentiate on more
than just coverage, then 4G may become a truly viable replacement for
fixed-line services.
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Copyright of Telegraph Media Group Limited 2013