O2 scraps 'unlimited' broadband tariff

By Dave Bailey

11 Jun 2010

Comment: 1

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O2 USB modem
The massive increase in mobile data transfers has prompted the move

UK mobile operator O2 is scrapping its unlimited mobile broadband data offering.

Depending on their monthly tariff, O2 mobile broadband customers will have downloads capped between 500MB and 1GB.

Further reading

The reason behind the move is the massive increase in mobile data transfers, brought about by new generations of internet-enabled smartphones which also have high-resolution cameras.

The cameras generate larger picture and video files, which if shared with friends can drive up mobile broadband network use significantly.

The recent UK launch of the Apple iPad has created another mobile device capable of affecting mobile operator networks significantly.

O2's actions highlight the growing challenge for operators that need to maximise revenue while still providing a compelling service for customers.

That problem is not being helped by the drawn-out negotiations in the mobile comms industry on how radio spectrum, required for faster mobile broadband bandwidth, is allocated.

Earlier in June, US operator AT&T scrapped its unlimited mobile broadband data tariff, introducing tiered offerings for its smartphone and mobile device users.

O2's cheapest tariff is a £25-per-month, two-year contract giving a maximum download limit per month of 500MB, while the more expensive tariff is £60 per month allowing monthly downloads of up to 1GB.

Reader comments

o2 Disgrace

O2 and other mobile companies should be shot for their disgraceful behaviour. THEY are the ones who have been shouting UNLIMITED from the rooftops for years now, despite having small print to make a lie of the promise, and now the industry is ready to move to the next step, they've realised they've messed up and can't handle it. And what of the small companies and individuals who've made heavy investments based on the lie of "unlimited" data. I keep records and Orange have specifically promised "unlimited" data and I intend to hold them to it. We should all be recording our conversations with mobile phone operators!!

Posted by: Peter Scargill  14 Jun 2010

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