O2 scraps 'unlimited' broadband tariff

Mobile broadband data downloads swamp mobile networks

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.

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.