3 UK slashes broadband costs as home usage grows
Published: 26 March, 2009
Mobile-only carriers like 3 have been hoping to gain users by promising that their HSPA services can be used to replace fixed broadband subscriptions, as well as used on the move. The tactic seems to be working in parts of western Europe where high speed HSPA is becoming widespread, and a new survey of mobile media behavior from Orange indicates a high level of usage of mobile broadband within the home.
The survey, called Exposure 2, is designed to attract advertisers to the platform, but also provides useful insights into consumer behaviour. It questioned 2,000 mobile media users in the UK across all networks, and came up with headline figures like the 67% of respondents who use their mobile connection to do email when at home. The figure is 56% for internet browsing.
Tapping into such trends, 3 UK continues to undercut its rivals in terms of mobile broadband pricing, and to present itself as a supplier of broadband in general, rather than specifically mobile services. This week it cut the cost of its top end mobile broadband package by 50%, making it only £5 more expensive than its entry level offer, priced at £10 ($14.50). The limit on the £15 tariff is 15Gb per month, on a two-year contract, compared with Vodafone's £15 package, which has a 3Gb limit, though on just a one-year deal. 3's other £15 tariff has a 5Gb limit and an 18-month commitment. 3's new offering comes with a free ZTE dongle and runs on the 3.6Mbps HSDPA network.
The cellco says the 15Gb allowance equates to 20 hours of browsing a day, or 25Mb of downloaded data per hour, or about 2.000 emails a day. It estimates that only 3% of its user base will ever go beyond the 15Gb cap, and says it has "created this proposition to address consumer fears over out-of-bundle charges, giving real peace of mind".
Dongle-based services have been far slower to take off in the US, where offerings from AT&T and Verizon have seen limited uptake and high tariffs, partly because of the lower use of public transport, especially trains, compared to Europe. However, as T-Mobile USA extends its HSPA network to catch up with its larger rivals' 3G systems, it has launched its first 3G USB modem for notebooks. It is supporting an 8Gb, quad-band device from Huawei, which will sell for $49.99 with a two-year contract (after mail-in rebate) or $99.99 with a one-year contract (or $249.99 contract-free).
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