Mobile broadband

Hidden costs of mobile broadband

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.

Thursday, 04 November 2010

By Garnet Roach garnet@consumerchoices.co.uk

Cost of dongles

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

You can get a free dongle when you sign-up to 12, 18 or 24-month contract, but buying one upfront is now so cheap that you don’t need to sign a long contract just to get free hardware. You can now buy one for less than £20 on a pay-as-you-go mobile broadband or one-month 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, O2 mobile broadband (www.O2.co.uk) only charges 2.4p per MB while Three mobile broadband (www.Three.co.uk) charges 10p per MB.

On the other hand, Vodafone mobile broadband (www.Vodafone.co.uk) and Virgin Media mobile broadband (www.Virginmedia.com) will make you buy a whole extra GB when you go over your limit, charging you £15 for the data.

'Unlimited' mobile downloads

T-Mobile offers a fair usage policy on its 18-month contract tariff. While you won’t be charged for exceeding your limit, you could still face some sort of penalty if you download too much. Your connection might be slowed down or you might even be asked to upgrade to a more appropriate - and more expensive - package of you regularly go over your limit.

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 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.

Although the EU has now put new rules in place to stop customers running up big bills in member states, different suppliers are implementing the rules in different ways. Read more on the new rules to help you avoid mobile broadband roaming bill shocks.

Getting tied in

Think carefully before you sign-up to a lengthy mobile broadband package. There is an increasing trend for flexible one month deals, 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 - it can help 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 - you could ditch your home broadband connection in favour of a dongle, even allowing you to get rid of the dreaded line rental you need to connect to your copper wire ADSL service.

This could cut your outgoings by £13.29 a month based on BT broadband (www.BT.com) line rental - saving you nearly £160 a year as well as giving you the freedom to take your broadband with you wherever you go.

Click here to compare broadband packages, and find a provider that's right for you.

Click here to view a list of mobile broadband UK packages.