O2 undercuts EE and offers 4G on prepay at no extra cost

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No difference in O2 pricing for 3G and 4G data price plans on prepay, as it undercuts rival EE on some 4G prepay data allowances

O2 has launched a range of new prepay tariffs which include 4G data for the same price as 3G data, as it looks to combat a loss of 208,000 prepay customers in Q1 2014.

Its ‘Big Bundles’ PAYG tariffs are available in three different bands costing either £10, £15 or £20 per month. The entry-level price will offer users 100 minutes, 1000 texts and 500MB of 3G data.

For £15 per month customers will get 200 minutes, 2000 texts and 1GB of 3G or 4G data. For an additional £5 per month, all these allowances would be doubled.  A variety of bolt-ons are also available including 100MB of data for £3, 500 MB and 20 picture messages for £6, or 1GB of data and 50 picture messages for £10.

This is the first time that O2 has made no differentiation between the price of its 3G and 4G data on prepay and is a further sign that the service is now mainstream. It has also differentiated its pricing from 4G market leader EE.

EE launched the UK’s first 4G prepay contracts in October 2013. It currently offers 1,000 minutes, unlimited texts and 500MB of 4G data for £16.99 per month, while for £3 per month extra customers can double their data allowance.

Meanwhile, all Three customers who have a 4G enabled handset and can receive a 4G signal, also get the service at no extra cost.

The ‘Big Bundles’ will be available from this Thursday (29 May).

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