Save £132 with a dongle


Updated on 05 January 2010 | 17 Comments

Mobile broadband dongles are cheaper than ever. Jane Baker rounds up the top six pay-as-you-go deals.

If you want internet access wherever you are, mobile broadband is the way to go. All you need is a USB modem or dongle from a broadband provider, then simply plug it into any PC and away you go. With no fiddly software to install, what could be simpler?

Better still because you connect to the internet wirelessly via the 3G network, there's no need to pay for a phone line. If you can live without a home phone for making calls, this could equal an annual saving of £132 (based on BT line rental at £11 a month).

Mobile broadband is becoming hugely popular. In fact, according to consumer website, BroadbandChoices, around a quarter of a million dongles are sold every month.

How good is mobile broadband?

If you don't have or want a landline, you can't get fixed line broadband access or you're on the move a lot, mobile broadband could be a great solution for you. But it isn't perfect.  

For one thing, the 3G network does now cover most of the UK, but the connection can be unreliable in some areas. Before you sign up to a mobile broadband deal make sure there's decent coverage where you'll be using the service. All the main broadband providers have coverage checkers on their websites.

Secondly, the service provided isn't quite as good as fixed line broadband in terms of speed. For example, you may find downloading music or watching TV online is slower via mobile broadband. A recent survey indicated that the average speed of mobile broadband is less than 1Mb, whereas fixed-line broadband is capable of speeds of 3.6Mb.

Thirdly, download limits tend to be smaller for mobile broadband. If you regularly use a lot of data for gaming or watching TV online, fixed line broadband will probably be a better option for you.

What deal should I go for?

Having said that, if you don't need a mighty download limit and a faster-than-the-speed-of-light connection, mobile broadband should still provide a pretty decent service. And, just like fixed line broadband, there's a vast array of packages on offer from pay monthly to pay-as-you-go.  

These days, broadband providers are very keen to sign customers up to the ever more lengthy contracts. In fact, you could be tied in for as long as 24 months. The longest - or most expensive contracts - are bound to offer tempting incentives such as free or cut price dongles to win your business.

If a long-term contract seems like a heavy commitment, you'll be pleased to know there's plenty on offer if you're after a pay-as-you-go or even a pay-per-day deal. It's true you'll almost certainly have to pay for a dongle or USB modem, but then you only pay for what you use.

Here's a round-up of the best pay-as-you-go mobile broadband deals. The table has been ordered according to the price of the USB modem or dongle, as this is the only fixed cost. 

Six top pay-as-you-go mobile broadband deals

Provider

Package

Speed  (up to)

Usage limit per month

Over usage charge per month

Pay As You Go (PAYG) tariff

Cost of USB modem/dongle

T-Mobile

Mobile Broadband Plus Daily

3.6Mb

2GB

Fair usage policy applies

£2 a day (only pay for the days you use)

£9.78 + £10 top up

3

Mobile Broadband Lite - Pay As You Go

3.6Mb

1GB

10p/MB

£10 per 1GB

£19.99

3

Pay As You Go + 1GB

3.6Mb

1GB

10p/MB

£10 per 1GB

£29.99

Vodafone

Top Up & Go Mobile Broadband

3.6Mb

N/A*

N/A*

£15 per 1GB

£35 (includes 1GB free)

3

Pay As You Go + 3GB

3.6Mb

3GB

10p/MB

£15 per 3GB

£39.99

3

MiFi Mobile Broadband - Pay As You Go

3.6Mb

3GB

10p/MB

£15 per 3GB

£49.99

Source: BroadbandChoices and broadband provider's own websites. *Vodafone: there is no monthly usage limit or over usage charge as such. Each 1GB costs the user £15.

O2 also offers pay-as-you-go mobile broadband. The current deals include half price USB modems for just £14.67, but these special offers are due to expire shortly.

As you can see T-Mobile charges just £9.78 for a USB stick with a top-up of £10 from you to get you started. This is pretty good value given that download speeds of up to 3.6Mb are available on all pay-as-you-go deals regardless of how expensive the modem or dongle is.

The 2GB monthly usage limit T-Mobile allows is also higher than some of the other networks which charge more for a USB modem. But on the downside, there's a PAYG tariff of £2 a day where you only pay for the days when you're online. This tariff could really start to add up if you access the internet regularly. On the other hand, if you're only an occasional user, this could work out to be a low-cost option.

Meanwhile at 3, dongles are more expensive - between £19.99 and £49.99, but the PAYG tarriff is £10 per 1GB or £15 per 3GB depending on which package you choose. This is significantly cheaper than the tariff available from Vodafone at £15 per 1GB.

How much download allowance do I need?

Even though these deals are available on a pay-as you-go basis, you'll still need to make sure you choose a package with sufficient download allowance otherwise over usage charges may kick in. At 3, for example, you'll be charged 10p for every MB you use over your download limit. Meanwhile, T-Mobile operates a fair usage policy which means you won't be charged immediately, but you may be asked to pay more if you exceed your limit several times.

It can be a little tricky to work out exactly how much you'll need, but here's a rough guide:

Is PAYG cheaper than a contract?

Mobile broadband is available from 3 from just £7.50 with similar usage limits to those shown above and a free USB modem. This would work out cheaper than the PAYG deals - with the possible exception of T-Mobile if you're only online for a few days per month. But with this contract you would be tied in for 18 months or two years.

That said, if you're not a heavy user, you can buy PAYG mobile broadband for around £10 to £15 a month from the most competitive provider with a usage limit of 1GB to 3GB, and still have the freedom to change your mind whenever you want to.

Finally, as well as keeping your broadband costs down, join these two goals: Kit out your PC for free and Spend less on your mobile  to save even more money. And for more hints and tips on all things techy, why not surf over to Q&A and ask other lovemoney.com readers for help.

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