Mobile broadband

Hidden costs of mobile broadband

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Mobile broadband deals are cheaper than ever, but even with lower headline rates and more generous download allowances, the hidden costs of mobile broadband can still add up, leaving you with a big bill at the end of the month if you're not careful. (Updated 09/03/2010)

Cost of dongles

The cost of buying your USB modem or stick will depend on the provider you choose, and sometimes the length or price of the package that you take too.

While you can still get free dongles when you sign up to a long contract, USB modem costs have dropped significantly over the past year or so, and you can now buy one for less than £20 on a pay-as-you-go mobile broadband deal.

Beware of data limits

All mobile broadband providers, with the exception of T-Mobile Broadband (www.T-Mobile.co.uk), apply set download limits to their packages - and you could be charged if you use more than this.

The amount you'll be charged for exceeding your limit will vary depending on your provider. For example, Orange Mobile Broadband (www.Orange.co.uk) only charges 2p per MB on 18 month plans, or 5p per MB on rolling one month contracts, while 3 Mobile Broadband (www.Three.co.uk) charges 10p per MB. Vodafone Mobile Broadband (www.Vodafone.co.uk) on the other hand will make you buy a whole extra GB when you go over your limit, charging you £15 for an extra GB.

'Unlimited' mobile downloads

T-Mobile is the only provider to offer a fair usage policy on its mobile broadband contracts. However, you could still face some sort of penalty if you exceed your limit. T-Mobile could restrict how you can use your connection or you could be asked to upgrade to a more generous - but more expensive - package.

Mobile broadband roaming charges

Many mobile broadband providers now offer roaming bundles to reduce the cost of using the internet abroad. T-Mobile, Virgin Media Mobile Broadband (www.VM.com) and Orange all launched new tariffs in February 2010 that cut the cost of European roaming to as little as 33p per MB - far less than out of bundle prices, which are typically around £3 per MB.

Getting tied in

Think carefully before you sign up to a lengthy mobile broadband package. There is an increasing trend for flexible one month deal, and you can now get a rolling contract, with minimum commitment, with a 3GB or 5GB allowance, for the same price as a longer contract that ties you in for 18 or 24 months.

But it’s not all bad

Mobile broadband isn’t just about hidden costs - you can make savings too. If you travel a lot and you’re not a big downloader - so you won’t exceed your monthly limits - and decide to ditch your home broadband connection in favour of a dongle, you’ll also be able to get rid of the dreaded line rental you need to connect to your copper wire ADSL service.

This could cut your outgoings by £11.50 a month or more - saving you around £140 a year as well as giving you the freedom to take your broadband with you wherever you go.

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