CCS Insight: “Today’s update won’t quell mounting questions over whether telecom operators can monetise their networks, compete with big technology companies and rejuvenate financial performance”
Amid much fanfare, EE has announced the first of a new suite of products and services beyond connectivity which it is offering all UK consumers, via a ‘marketplace’ platform accessed via EE ID identity management and log in.
BT Group is in the process of making EE its flagship brand for consumers, hence today’s announcement of its “new positioning and brand strategy as EE expands into new verticals including gaming and the home”.
EE’s CEO, Marc Allera, said, “Today we’re incredibly proud to be launching a new platform for the UK, open to anyone and everyone – that will transform our customers’ experience beyond connectivity”.
Not everyone is convinced this is a transformational leap. “EE’s announcements represent an evolution in its strategy, rather than a major shift in direction,” says Kester Mann, Director of Consumer and Connectivity at CCS Insight.
He added, “EE’s grand plan is to bolster its relevance among customers and stir greater engagement, particularly via its app. Today is an important step along that journey, but the company will be under no doubt that creating a new brand identity is a challenging and time-consuming endeavour.”
The marketplace
BT is bigging up the new EE marketplace which will enable customers to shop, organise devices, subscriptions and services using their digital identity. It can be accessed via the EE App or online by all UK consumers, regardless of their which mobile or broadband network they subscribe to. EE ID will use multi-factor and passkey authentication to secure personal data.
The platform will include an EE Consumer Electronics Shop, gaming, home security, insurance and subscription services at launch, with more services and capabilities, including subscriptions to partners’ services, added later.
UPDATE: According to a report in the Financial Times [subscription needed], BT will sell kitchen appliances like smart fridges, kettles and coffee machines from next year as well as the consumer electronics – laptops, cameras and smart TVs – it already offers.
Allera is quoted in the FT article saying, “We think we can do it better than other retailers,” because of EE’s network of stores, UK call centres and the new customer portal. It is hard to see how in a market where margins are tight and some established brands are struggling.
Making sense?
“The new areas of focus for EE make sense. Gaming, insurance and security don’t stray too far from its core connectivity roots, unlike riskier industry forays into sports rights and financial services, many of which have been unsuccessful,” says Mann.
He added, “Today’s update won’t quell mounting questions over whether telecom operators can monetise their networks, compete with big technology companies and rejuvenate financial performance. But EE at least appears to recognise its challenges and the changes outlined feel like a step in the right direction.”
Paolo Pescatore of PP Insight is more enthusiastic, noting, “Consumer behavioural patterns have changed, and it is about time telcos evolved. This latest revolutionary move represents a radical and fundamental shift in thinking and approach in the way a telco operates. In essence, the new EE aspires to be more – a broader tech and services retailer underpinned by connectivity.”
For the home
EE will be offering content and set-top-box options “in the coming months” including the EE TV Box Pro with multi-room coverage and the EE TV app will launch on Apple TV 4K. This will include a bespoke TV guide for live TV as well as an EE-branded remote control. The Apple TV app will be made available on EE’s set-top boxes. The BT TV service will be rebranded as EE TV.
Ernest Doku, Uswitch’s telecoms expert, states, “Aligning with Microsoft for gaming and Apple, NOW, Sky and TNT for content illustrates just how serious EE is about repositioning itself towards being a single destination for best-in-market broadband, TV and mobile services.”
Broadband and mobile
From the 19 October, customers can access EE Full Fibre 1.6Gbps, the most advanced broadband offering yet that delivers the fastest speeds and reliability of any major provider in the UK.
Due to an exclusive partnership with Cambridge-based, Netduma, EE is to introduce a WiFi Enhancer service to boost home connectivity by prioritising traffic using game and work modes.
EE is also introducing WiFi Controls, so customers can control all the connectivity within their homes and leverage their Wi-Fi.
EE Broadband customers will also be able to access what BT is calling “unbeatable value” mobile savings for their whole household, for example, being able to add unlimited data SIMs on 30-day subscriptions from £10.
Doku comments: “The levelling up of EE, not just as a provider but a platform for customers on any network via EE ID, is a novel approach for the brand to integrate themselves into consumers’ daily lives. This move drives the nature of competition in the market beyond a speed race – even while launching a 1.6Gb product.”
He continued, ““It’s a massive play to try and shake up the telecoms market, while benefits such as unlimited data for just £10 or dedicated broadband options for gamers are the preserve of those customers taking out EE products.”
Something to look forward to
Time will tell how successful this play is, which according to Pescatore “has been years in the making” but in the shorter term, from 20 October, we are promised the biggest marketing campaign since EE launched in 2012. It will focus on four customer ‘needs’ based on extensive research: Game; Home; Learn; and Work [BT’s punctuation]. From next week, BT’s customers will be offered the opportunity to join the new EE, as they renew or upgrade.