Telcos cut mobile broadband to ADSL pricing

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David Flynn29 November 2007, 1:21 AM

Both Vodafone and Optus have lopped their mobile broadband rates to match ADSL deals on the market, in a major about-turn for the mobile industry.

Optus and Vodafone are taking the fight to ADSL ISPs by slashing their 3G/HSDPA mobile broadband pricing to match or better the wired equivalent.

Vodafone's new offer on mobile broadband is a monthly 5GB plan costing just $39 with your choice of a free USB or ExpressCard modem, each of which has a sticker price of $299.

The deal is valid until the end of December, and while new customers have to sign a 24 month contract that'll carry them through to December 2009, existing customers on the 100MB and 300MB 12-month and 24-month contracts can move over to the new 5GB plan under their current contract period for free.

Express lane: Vodafone's sleek ExpressCard modem is included in the new mobile broadband deals, and is ready for the network's planned upgrade to 7.2Mbps

However, Vodafone says that "Some customers on higher data plans may need to pay a fee to move to the new plan. This fee is dependent on the residual time remaining on their original contract."

Vodafone's mobile broadband system runs on its HSDPA 3.6Mbps ‘3G Broadband' network which is available in "the greater metropolitan areas of Sydney, Melbourne, Canberra, Brisbane, Gold Coast, Sunshine Coast, Central Coast, Adelaide and Perth, plus all major airports across the country".

The carrier estimates typical download speeds range from 600kbps to 1.5Mbps. Both the USB and ExpressCard modems are rated to 7.2Mbps, and Vodafone has hinted that a network upgrade to 7.2Mbps lies ahead

Optus revamps its pricing too

Optus is also jostling for a slice of Christmas sales, announcing a new 2GB/$40 monthly plan to keep existing customers in the fold and attract new bundle-oriented buyers.

The deal is available to existing Optus landline and/or mobile subscribers and runs on the Optus ‘Turbo G' network, which is the company's moniker for its 3.6 Mbps HSPDA 3G service.

The Optus scheme is based on a 24 month commitment to the whole bundle. However, the modems are not only an extra cost of $5-$10 per month depending on the device and length of contract, but according to the fine print this is in fact a ‘rental charge' and the modem belongs to Optus, even after the contract expires.

"If you choose to use an Optus supplied wireless data modem, the modem is our property" cites a footnote. "We may charge you an upfront fee and/or a monthly rental fee for use of the modem depending on your pricing plan." That clause might be fair enough if Optus supplied the modem free, and therefore footed the bill, but it seems a bit rough considering they're getting customers to pay off the modems over the 24 month period.

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tin:

Interesting...
But not for me... I'm more of a phone for mobile use person, and as such I want shared calls and data in the monthly inclusion (not separate allowances).

Also, lack of HSDPA coverage is a pain. 2009 perhaps?

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wes:

Sounds like good deals but the 24 month contract doesn't look good at all and for that reason I will stay with my current provider.

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robbo:

I wish telstra would review their pricing. If they had a Next G 1Gb for $30/month I'd join tomorrow!

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Anonymoose:

The ownership of modem thing is also a trait of Virgin Broadband@home; and considering that virgin piggyback Optus' network i am not entirely surprised.

the Voda 5Gb for $39 plan is 20 bucks less than the Virgin offering for 1GB more. unfortunately it is expresscard whereas the Virgin B@H offers a wifi router modem device.

i have been happy with my virgin service altho being wireless i do admit it isnt as good as fixed line; but my needs arent that big so it it is adequate. If other providers continue to up the ante though; it wont stay adequate for long...

Either more speed or more data, or both will be called for by customers.... and even despite paying out the $15 per month X remaining months of the virgin 24 month contract fee, some may rationalise going to vodaphone say, as - i pay 20 bucks less for a gb more per month, even if i count the 15 bucks/month remainder disconnect fee youd be $5 and 1GB a month in front with vodaphone?

i think i tip Virgin to be the next mover, assuming they arent comfortably ensconced where they are...

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AJnonymous:

The Vodafone offering offers the choice of USB Modem or the Express Card option to my understanding. Further to that, the ExpressCard option also comes complete with an adapter for a PCMCIA option.

Cheers,

AJ

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MitH:

Always in the details,

the optus facts are a bit brief in this article. the facts about the modem and different options are not totally clear. ive just spent 3 days going thru the details and see how easily it is to be confused.
the Optus term 'bundled' now means under contract (12/24), standalone means month to month.
plans taken month to month are moved to the higher monthly price, although you then do get the option to smartshare (use the data allowances etc from TWO plans as a total for both).
on the bundled plan there is no sharing, go figure.
also the usb modem is clearly FREE for the contract time and then $5/m after that.
using the same account for data on a mobile IS allowed so now people can have data on the mobile (browsing or as a modem to a pc) is great value (now) at $50/2gb on a non contracted service. for $5 more amonth i can get a usb modem and smartshare those (total 2005mb/month*)

i hope that clears things up (for a few days)

D
* - data counted both ways :(

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APC administrator:

Actually, 'bundled' means you have to have a landline or mobile with Optus in order to qualify for the lower contract price. And you have to take a 24 mth contract.

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Musk:

I went for this. I signed up on a 12 month contract with Optus bundled with my Mobile account (which was already with them). Because I went for 12 months instead of 24, I pay $60 for the modem ($5 per month over 12 months) instead of it being free.

Interestingly, the contract only covers the wireless service, even though I bundled with my existing phone. My Optus mobile, which has been on a month-by-month basis rather than a contract, remains this way.

I am very pleased that they offer this flexibility. The other extreme would have been to force a 24 month or nothing contract that covered both wireless and mobile. I would NOT have signed up if that was the case.

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