3 poaching broadband customers

 

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Posted on 31 Mar 2008 at 11:45

3 claims its mobile broadband offering is poaching customers from fixed-line internet service providers.

"We have definitely seen some customers taking mobile broadband as an alternative to fixed line," says Kevin Russell, chief executive of 3 UK, speaking to the Financial Times.

Although the data transfer rate using 3's USB "dongles" varies according to distance from the nearest radio mast and how many people are using mobile phones in the area, the speed can now compete with fixed-line connections, with 3's users seeing an average of 1.2Mb/sec.

The flexibility of mobile broadband is another reason the devices are becoming more popular, especially amongst those who regularly move house, such as students.

Over 50,000 are sold each month in the UK, according to Morgan Stanley, and one third of new pay-monthly 3 customers are buying them.

3 customers can even subscribe to mobile broadband on a Pay As You Go basis, buying a USB dongle for £69.99 and receiving a 1GB allowance per month for £10, 3GB for £15 or 7GB for £25.

Prices for such services have tumbled in recent months. In February Vodafone cut the cost of its 3GB mobile broadband package from £30 to £15 for a limited time.

Since tracking sales of mobile broadband the comparison site Top 10 Broadband has seen uptake increase by over 50% month-on-month. "It is absolutely taking off," says spokesperson Jessica Mcardle, who claims that sales will overtake fixed-line broadband by 2010.

Author: Matthew Sparkes