Mobile Broadband Guide

Mobile broadband pay-as-you-go vs contracts

Can’t decide whether to sign a mobile broadband contract or get a simple pay-as-you-go tariff? Our guide will help you choose the right package for your needs. (Updated 19/08/2010)

What is mobile broadband?

Mobile broadband uses the 3G mobile phone network to connect you to the internet, allowing you to go online no matter where you are. All you need is a mobile broadband signal.

You’ll get a “dongle” from your mobile broadband provider, which you simply plug into your laptop or netbook - all the necessary software will be installed automatically and you'll be able to go online within minutes.

Pay-as-you-go mobile broadband

Pay-as-you-go mobile broadband is great for light users or anyone on a tight budget. It works in the same way as a pay-as-you-go mobile phone, where you simply top up your dongle so that you can go online.

But you do need to be aware that any data you don’t use will usually expire after 30 days. You will also have to buy your dongle outright, though this can cost as little as £20.

And while pay-as-you-go packages are great for keeping track of your bills, you can usually get better value for money from a contract deal.

Mobile broadband contracts

You can get better value than ever before from today’s mobile broadband contracts. Three mobile broadband (www.Three.co.uk) offers as much as 15GB a month on selected packages, while Orange mobile broadband (www.Orange.co.uk) offers an “unlimited broadband” Panther plan with a 20GB fair usage allowance.

As well as high download allowances, you can also cheap mobile broadband packages offering 500MB or 1GB of data for as little as £5 or £7.50 a month respectively.

And it’s not just lower prices and higher data allowances that make mobile broadband contracts such great value for money - you'll also get a free dongle, with some providers, including Three and Vodafone mobile broadband (www.Vodafone.co.uk) even offering mobile wi-fi devices that let you share your mobile broadband.

Most providers also have “free laptop” deals that can help you spread the cost of a new computer.

But there is a drawback - most mobile broadband contracts come with a lengthy 12, 18 or even 24-month commitment. If this puts you off a mobile broadband contract, you should try a one-month deal instead.

One-month mobile broadband contracts

One-month mobile broadband deals offer better value for money than pay-as-you-go deals, without the commitment of a long contract.

Most mobile broadband providers now offer 30-day rolling contracts as well as sim-only deals if you've already got a dongle or a laptop with built-in mobile broadband.

Unlike a pay as you go dongle, you won’t have to top up with a one month deal - your allowance will automatically refresh each month, though you can buy additional data if you need it.

However, with a one month dongle deal you’ll need to keep an eye on your downloads and make sure that you never exceed your allowance. Unlike a pay as you go dongle, you’ll be able to keep downloading once you reach your limit - though you’ll be charged an out of bundle rate, which varies from 2p per MB on Orange Mobile Broadband's (www.Orange.co.uk) 18 month contracts, to 10p per MB with Three (www.Three.co.uk).

Choosing a provider

When it comes to choosing a mobile broadband package, you need to think about more than just the length of your contract and how much you'll be paying each month.

• Coverage - mobile broadband coverage can vary massively from urban towns and cities to rural areas, which often have poor 3G reception. This means that it’s really important that you run a postcode check with your chosen provider before signing up
• Download allowance - think about how you want to use your mobile broadband. If you're a very light user, or if it will be a complement to your home broadband then you should be able to get away with a low download allowance. But you should give your package careful thought if it’s going to be your main connection
• Speed - although mobile broadband is often advertised with speeds of up to 3.6Mb or even 7.2Mb, actual average speeds are actually more like 1Mb - far slower than a fixed line connection - so bear this in mind when choosing your package.