Tele2 stuns mobile industry with cheap 4G deals on phone purchase

Tele2 is officially launching its 4G network. The network will be available to everyone from Thursday. The provider has several packages on offer, ranging from 1 GB to 24 GB, twice as large as the Netherlands' current largest available data bundle. All data bundles are available at "unusually low prices", according to the Tele2 press release.

"It is time for Dutch consumers to take the handbrake off their mobile data usage. In the last three little has changed in the prices, which puts them still among the highest in Europe", said Jeff Dodds, CEO of Tele2 Nederland, in the company's press release. "We are going to chance this by giving the market in the Netherlands a good shake up. We're starting a data revolution with the launch of our new LTE-Advanced network: super fast mobile internet with great coverage for the lowest prices."

At the launch Tele2 is offering subscriptions with data bundles of 1, 1.5, 4, 8 and 24 GB in combination with a smartphone. With the smallest 1 GB package, customers get 100 call minutes and text messages. The other packages have unlimited texting and calling included. Prices will be between 10 euros per month for the smallest package and 35 euros per month for the largest, excluding handset charges. One national newspaper, AD, went so far as to call these low prices a "data war" that could have a ripple effect on pricing from other providers.

The larger bundles is will initially only be available in combination with a smartphone. Sim-only packages have a maximum of 250 minutes and 2.5 GB of data. The company wants customers to purchase a similar plan in conjunction with a budget smartphone, which will cost about the same according to Tele2.

According to the company, the Tele2 4G network already covers 92 percent of the outdoor population and nationwide coverage is planned for the end of the first quarter next year.

As a thank you, Tele2 is giving existing 4G customers double their subscription data bundles in the future. Existing 3G customers will get an extra 1 GB.

"Tele2 will unleash a revolution in the mobile market in the Netherlands", Allison Kirby, President of Tele2 Group, said in the company's press release. "This is the sixth country where we have created our own 4G infrastructure. We want to stimulate the demand for mobile connectivity by offer customers bigger but more affordable 4G data bundles."