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Mobile broadband undercutting fixed-line packages, study shows
Analysys Mason has claimed that low-cost prepaid mobile broadband deals are undercutting the prices charged by fixed-line providers.
The premium that network operators in the US and Europe - such as 3 Mobile, O2, Orange, T-Mobile, Vodafone and Virgin Media - charge for these services has fallen, according to consulting firm Analysys Mason.
Senior analyst Martin Scott noted that prepaid mobile broadband deals offering usage caps of 3GB or more are "sufficient for light users".
These pay-as-you-go offers "now undercut entry-level fixed broadband service propositions in terms of price in most western European countries", he claimed.
Mr Scott added that this is having a knock-on effect on the price that providers are charging for traditional home broadband connections.
Earlier this month, 3 Mobile announced plans to improve its mobile broadband coverage in cities across the UK.
The company is keen to boost its 3G reception in Glasgow and Leeds by investing a combined total of £8.5 million on its network.