Analysts claim O2's mobile broadband is overpriced and too exclusive

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o2-broadband-mobile.jpgIt appears I wasn’t the only one concerned about O2’s mobile broadband, which launched last Friday. Analyst firm Ovum (not related to this ovum) has reported that their package is overpriced, and too exclusive.

Being available purely to existing customers who have home broadband or a SIM is akin to shooting themselves in the foot, a senior analyst, Steven Hartley, at Ovum claims. “None of the other companies make this stipulation, although 3 is now offering a 50 per cent discount to existing customers.”

According to Hartley, “O2’s 18-month contract is £5 more than 3’s, Vodafone’s and T-Mobile’s”, with the latter company offering a 24-month contract. However, “the one-month contract is the same price as Vodafone, but the one-off USB modem fee is £20 more expensive.”

O2 hasn’t released details on the popularity of the service as yet, although it’s looking more and more obvious that they’ll have to have a serious rethink about their pricing and availability before they can expect to sell any USB dongles.

(via Absolute Gadget)

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Katherine Hannaford