O2 launches mobile broadband

O2 has added mobile broadband services to its fixed-line broadband and mobile phone offerings.

Customers will be able to access the internet via O2's mobile network and using any of The Cloud's 7,500 Wi-Fi hotspots in the UK.

There is a choice of rolling one-month contracts or an 18-month contract. Both cost £20 per month, but customers on the 18-month deal get the USB modem included for free, whereas one-month customers will have to pay a one-off charge of £120.

"Our O2 Mobile Broadband product exclusively allows O2 customers to access the internet wherever and whenever they want with clear and predictable pricing," said Sally Cowdry, O2 UK's marketing director.

As part of the deal, you'll get a usage limit of 3GB per month through the O2 mobile network, but unlimited downloads, subject to a fair usage policy, from The Cloud's hotspots.

O2 said that speeds of 1.8Mbps were possible on its network currently, though this would increase to 3.6Mbps beginning in June.

The company began offering fixed-line mobile broadband last November. Much of its network uses ADSL2+ technology, which is theoretically capable of 24Mbps.

But one analyst was not impressed by the package, saying it was too expensive.

"O2's mobile broadband offering is ultimately not competitive for consumers, even existing customers. Like O2's fixed offering it is unlikely to set the market alight," said Steven Hartley of Ovum.

Hartley also predicted that O2 would drop the price in the near future.

www.o2.co.uk