O2 ends unlimited mobile broadband data contracts for smartphone users

Mobile broadband provider O2 decides to take away the unlimited data contracts for its new smartphone customers, by launching three data bundles with set monthly download limits from June 24.

With the new Apple iPhone 4 to be released on the same day, O2 will offer three clearly specified monthly data options to new smartphone customers – 500 MB, 750 MB and 1GB.

However, as a promotion, O2 will offer unlimited data to new subscribers until 1st October. After that, the heavy users will have to buy ‘Bolt Ons’, for additional use, like 500MB data for £5 or 1GB for £10. Frequent text messages from O2 will also alert the customers to check their usage and help cut their monthly data cost.

O2′s existing mobile data contracts for smartphone users come with unlimited data which is subject to fair usage of 750MB, unlimited wi-fi access and unlimited text messsages. O2 says the new tariff will not apply to existing customers until they go for upgrading or renewing the service with the provider.

Ronan Dunne, CEO of O2 said: “With the wide range of Internet based services now available on mobile devices we’re providing customers with generous clear data bundles that give customers freedom. This enables us to provide a better overall experience for the vast majority of customers and to better manage demand.”

According to O2, most of its smartphone customers (97%) are likely to use less than 500MB data per month so would not need to buy ‘bolts ons’ for additional use.

The new smartphone plans will come with 24 month contract and monthly cost ranging between £25 to £60 and will offer free wi-fi access and unlimited texts while call minutes and data do vary, depending on the chosen, data bundle plan.