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3 U.K. Pares Back Data Pricing; Offers Flat-Rate Access But Caps Data at 1GB Per Month Download

The price war in data rates is official. 3 in the U.K. is the newest operator to announce a flat-rate mobile Internet package, according to an e-mail release. The deal, GBP5 ($9.90) for a month of “unlimited access,” is a bit of a misnomer since the operator’s fair usage policy limits caps data downloads at 1GB per month. In any case, the deal is available on all handsets, including 3’s X-Series devices. These devices are chock-full of services and apps including Skype software, Yahoo mobile search, Ebay, Windows Live messenger – and some even let users access their home TVs using Slingbox. The X-Series was part of a flat-rate package from the start, and now the operator is betting the combination of device and tariff will drive data across its complete offer.  However, independent technology consultancy Ovum has a different take on the announcement. It believes 3 is not pioneering flat-data as much as it is indicating disappointment with the uptake of data services (including the X-Series) to date. 3’s move follows Vodafone’s decision last week to introduce flat-rate data. (BTW: I erroneously reported that New Media Age got the scoop on Vodafone’s price-cut, when Mobile Media (sub.req.) actually broke the story in February. Credit where credit is due, guys.)
Related:
Vodafone U.K. To Join The Flat-Rate Data Bandwagon
Analysts Welcome 3’s Flat Rate Plan

Apr 13, 2007 6:02 AM ET
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Posted In: Companies, 3 UK, Vodafone, Countries, Europe, UK

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