Orange have launched a mobile broadband package for under £5 and introduced a price cap so users can't get hit with huge bills if they overuse their mobile broadband package.
The new package at £4.89 a month on an 18 month contract allows users to download just 500 megabytes per month, but this will be sufficient for occasional use to read e-mail and browse websites. A second new product addition is an unlimited off-peak service that allows unlimited usage between midnight and 9am. This starts at just under £13 for 1GB of usage in the 'peak' period.
A very welcome introduction is a price cap of £40 for going over the data usage limit. This means if users leave their mobile broadband connected by accident or find that software updates have been automatically downloaded whilst you were connected, you won't get stung for a huge bill as a result. Recent research by moneysupermarket.com showed that some providers can charge as much as £200 per gigabyte if you go over your usage, so a low limit will be appreciated by users who get caught out by this.
Next will be to see how the other providers respond to these product changes. This new cheaper product brings prices that are below the cost of traditional fixed line broadband, however fixed line broadband does have higher fixed costs.