Pay as You Go Mobile Broadband more now more popular than contact deals

According to a recent report from broadband comparison site Broadband Expert sales of pay as you go mobile broadband have overtaken contract mobile broadband sales for the first time. The comparison site has reported that in October 53% visitors to the site purchased pay as you go mobile broadband compared to 47% who opted for contract deals. The shift towards pay as you go has been noted by other organisations too with a report from GFK Retail and Technology finding that 63% of all mobile broadband sales in September where of the pay as you go variety.

A number of reasons have been cited for the movement away from contract deals to pay as you go mobile broadband. Firstly the economic downturn has made consumers more price sensitive when they shop and less willing to commit to long contracts. Secondly many mobile broadband customers also have a home broadband connection which they use most of the time and for activities that download lots of information. This means that for these users the amount of data they need is relatively low so they are much better of with a pay as you go mobile broadband contract where they will only pay for the data they use. Additionally there has been an increase in the number of pay as you mobile broadband deals available on the market.

With Christmas approaching it is expected that the trend will continue with sales of pay as you go mobile products typically performing well over the festive season. A spokesperson from T-Mobile commented that, ““In Q3 2009, we saw a stabilisation of the contract mobile broadband market as customers increasingly opt for the flexibility of pay-per-day tariffs.  Prepay mobile broadband sales now account for 20% of the market and have been growing at 10% a month for the last three months”.  Mobile broadband has been dropping in price for sometime and now some of the best mobile broadband deals are as cheap as home broadband services which should help the growth in this technology continue to grow.



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