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Smartphone data deals to be scrapped by phone companies

June 28, 2010 by Admin

Many UK phone companies which currently offer unlimited data plans for smartphones are looking to cap data usage in the UK. O2, Vodafone and Three have all announced that they intend to limit data usage, in a move which coincides with the recent launch of the Apple iPhone.

O2, which operated as Apple’s exclusive partner in the UK for Apple’s iPhone, has just brought in a cap of 1GB each month for new contracts signing up for the service. Vodafone and Three are following suit, suggesting an agreement across the companies to reduce data use through devices. Rather than attempt to offer better deals in a competitive market, the decision has sparked a debate as to whether the phone companies have concerns about the possibility of networks being clogged by large data downloads.

Orange have had an imposed 750MB limit since they began to provide iPhones in 2009, which they term their ‘fair usage’ policy. Most of the providers offer variable data packages depending upon the type of contract which users sign up to when they purchase their smartphones, between 500MB and 1GB monthly. This is meant to cover up to 1,000 emails with attachments, or up to 300 MP3 downloads.

The launch of better, faster smartphones has led to rapid data consumption, with people streaming more and more information on their gadgets. This has created a ripple in the mobile industries, as companies rethink their original packages in an effort to reduce congestion from numerous users downloading data at the same time.

O2 currently lets users know when they are getting close to their limit, via text. Once a user has reached their personal limit, they are not allowed to surf, and functionality is limited to the sending and receipt of emails. They have provided a top-up service where users can purchase additional data allowance, at £5 for 500MB. While most people who own smartphones do not reach their monthly allowance of data, it seems that mobile phone companies will have to act quickly to ensure that their capabilities for provision of service can meet the demand created by enhanced smartphone functionality.

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