[techwatch] O2 is going to do away with its unlimited data tariffs, and introduce a new system of data caps.
The move will be made at the same time the company puts the iPhone 4 on sale, which is June 24th.
It means that most new customers after then – those on the averagely priced tariffs – will get 500MB of data allowance per month for free, but usage above that will be charged at £5 for every 500MB block.
Those who pay a higher monthly rate on their tariff will get an increasingly larger free allowance, up to a 1GB maximum.
However, existing O2 customers can stay on their unlimited plan, if they so wish, assuming they remain on the same plan, with the same phone.
And new customers after June 24th will get unlimited data to begin with, as the data caps won’t actually come into force until October.
O2 says that the extra revenue generated will be ploughed back into improving the company’s network performance, to the benefit of customers.
With the increasing rate at which people are adopting smartphones and adding to the burden on 3G networks with unlimited packages, analysts envisage similar sort of changes coming across the industry.
O2 brings an end to unlimited data