Pay as You Go mobile broadband overtakes contract deals
Published on: 19th Nov 2009
Note -- this news article is more than a year old.
October sales figures from the UK broadband comparison web site, Broadband Expert show for the first time that consumers prefer Pay as You Go mobile broadband to contract mobile broadband. The comparison site reports that 53% of mobile broadband customers during the month opted for Pay as You Go deals compared to 47% who have taken contract deals.
Rob Webber, Broadband Expert's commercial director believes this trend is set to continue: "We've seen Pay as You Go sales rise sharply since the end of 2008 as customers realise that they only need to pay for the broadband they use and don't need to enter into a lengthy contract.
"We expect that this trend will continue over the Christmas period when Pay as You Go mobile broadband and phones typically perform well compared to contract mobile services. Prepaid mobile broadband makes an ideal gift - especially for the types of people who may not be able to get credit such as the under 18's or the very old."
A similar trend has been witnessed at T-Mobile, where a spokesperson at the company said: "In Q3 2009, we saw a stabilisation of the contract mobile broadband market as customers increasingly opt for the flexibility of pay-per-day tariffs. Prepay mobile broadband sales now account for 20% of the market and have been growing at 10% a month for the last three months." The shift to pay as you go mobile broadband witnessed by Broadband Expert is also inline with findings from market research company GfK Retail & Technology which found that 63% of mobile broadband sales were of the prepaid variety in September 2009.