The iPhone 5 can only access the fastest mobile networks on specific airwaves. This is causing those carriers who are at a disadvantage in Europe to knock down the price of handsets from Samsung.
How iPhone 5 LTE indirectly promoting sales of other powerful devices like Samsung Galaxy S3 in Europe
The iPhone 5 went on sale today and it connects to 4th generation networks in Europe that work on the 1800 megahertz band. This of course is only favouring networks that offer this. These will include Germany’s Deutsche Telekom AG (DTE) and its British EE venture with France Telecom SA. (FTE) Vodafone Group Plc (VOD). O2 can only offer the device for use on their 3G network. It is thought that the restrictions that the iPhone 5 brings may push Vodafone, along with other carriers in Europe, onto Samsung devices. This is mainly thanks to the fact that handsets like the Samsung Galaxy S3 come with 4G that has compatibility for their networks.
The iPhone 5 has been predicted to be one of the fastest ever selling devices and it thought that subsidies along with promotions could help those operators who offer the iPhone 5 on slower networks. O2 for instance will be able to offer the iPhone 5 on contract with the option of upgrading to the 4G device, when it is in place. It is thought that O2 will pay up to 10% of the cost of buying off the contract and they will pay taxes.
LTE networks allow users of the phone to access data at faster speeds and it is five times faster than what is available right now. Samsung brought out a range of Galaxy handsets with Android software and today. The Samsung Galaxy S3 of course is the biggest competition to the iPhone 5 and buyers are having a hard time deciding between the two. This of course should make the decision easy for many depending on their networks since Apple pushed the importance of 4G LTE speeds pretty hard in their marketing.