O2 releases low-cost PAYG dongle

This week O2 launched a new pay-as-you-go (PAYG) mobile broadband service.

Anyone wishing to sign up for the service pays £29.99 for a USB dongle modem that offers download speeds of up to 3.6Mbps.

Prices on the PAYG service are £2 per day, with a 500MB download limit, £7.50 per week with a 1GB limit, or £15 per month with a 3GB limit.

All prices include free unlimited access to O2′s 6,000 Wi-Fi hotspots across the UK, whilst customer support is available 24/7 from a UK-based call centre.

The service includes O2′s 50 day ‘Happiness Guarantee’, during which customers can return their products for a full refund if they are not satisfied for any reason.

O2′s PAYG dongle is now the lowest priced USB modem available in the UK – coming in £10 lower than rival provider 3′s offering.

Competition in the mobile broadband sector has been hotting up lately, with Orange bundling home and mobile broadband for £20 per month, and Virgin charging just £5 per month for its cable customers to add mobile broadband to their services.