The reduction may instigate a price war between the UK 4G providers

Mobile network operator EE has slashed the price of its 4G service, leading to speculation that the reduction could instigate a price war between the UK’s 4G firms.

EE are now offering 4G handset plans for as little as £18.99, a marked decrease from their previous cheapest offer of £26. With the new plans, customers will be entitled to 1000 UK minutes, unlimited texts and 500MB of data. EE have also claimed that their 4G plans “offer download speeds up to 30Mbps”.

The other 4G service providers in the UK, Vodafone and 02, may well now feel under pressure to also lower their prices in order to stay competitive. As it stands, the cheapest 4G handset plan from Vodafone, who toasted 100,000 4G UK subscriptions last week, costs £32, with 02’s priced slightly higher at £34.

EE’s dramatic price drop comes after Ofcom proposal last week for a 400 per cent increase in the fee mobile networks are charged for providing 4G, with industry analysts predicting that the increased prices would be shouldered by customers. The plans look set to affect EE significantly, with its rates more than quadrupling from £24.9m to £107.1m.