Pay As You Go, Mobile Broadband Overtakes Contract Deals

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Last year in October 2009, figures from leading broadband comparison site Broadband Expert (http://www.broadband-expert.co.uk/) show for the first time that consumers prefer Pay as You Go mobile broadband to contract mobile broadband. The figure shows that 53% of mobile broadband customers during the month opted for Pay as You Go deals compared to 47% who have taken contract deals.

Customers got to save more money because they only needed to pay for the bandwidth when they used it thus saving them the trouble of being tied up with contract plans for broadband connections. Rob Webber, Broadband Expert’s commercial director believes the trend is set to continue as they have seen Pay as You Go sales rise sharply since the end of 2008.

A similar trend has been witnessed at T-Mobile, where the company said that in the 3rd quarter of 2009, they saw a stabilization of the contract mobile broadband market as customers increasingly opt for the flexibility of pay-per-day tariffs compared to lengthy contracts. Prepay mobile broadband sales now account for 20% of the market and have been growing at 10% a month for the last three months seeing as there are unlimited mobile broadband packages offered.

This shift witnessed by Broadband Expert is also inline with the findings from market research company GfK Retail & Technology which found that 63% of mobile broadband sales were of prepaid in September 2009. Now that is a huge turnaround!