Short-term mobile broadband deals to proliferate

O2 offers a one-month mobile broadband contract at £29.35 upfront

Continuing economic pressures are likely to spur the growth of one-month mobile broadband deals, as customers look to trim costs and avoid long-term contract lock-in, according to comparison site Top 10 Broadband.

The company said that the popularity of short-contract and no-contract home broadband packages has risen rapidly in recent months, and predicted a similar pattern emerging in the mobile broadband market.

The figures suggest that one-month mobile broadband deals will account for 20 per cent of all mobile broadband sales in six months' time.

"One-month mobile broadband deals are soaring in popularity during the current recession, as wary users shun long-term broadband contracts in favour of 'light' commitments," said Jessica McArdle, marketing manager at Top 10 Broadband.

"Last year, mobile broadband changed the UK broadband industry forever. Now, with new one-month deals, mobile broadband is continuing to cause game-changing shockwaves."

O2 is currently the only mobile broadband provider to offer the option of short-term contracts, but more are likely to follow, according to Top 10 Broadband.

O2's 30-day deal allows customers to sign a one-month contract at £29.35 upfront for a mobile broadband modem or dongle. Download rates are then £5 per gigabyte, which is still much cheaper than pay-as-you-go rates, said Top 10 Broadband.