Until the end of May, customers will be able to sign up with O2 and receive a USB dongle to help them get online using O2’s mobile broadband networks for half of its original price.

The USB dongle was originally £19.99, but from now until May 31st the dongle is just £9.99, giving consumers even more incentive to pick up a mobile broadband package and see how it can work for them, without committing to an extended contractual period.

O2 has extended its pay monthly mobile broadband deals by adding a new laptop computer to its line up of incentives. The Asus UL30A straddles the line between netbook and notebook, with powerful hardware combined with light weight portability.

There is an up-front charge to pay for this cutting edge computer, but for your money you get 3GB of RAM, Windows 7, a large 320GB hard drive and of course O2’s award-winning mobile broadband service. Best of all, this laptop has an integrated mobile broadband modem, so there is no need to cover the cost of a separate USB dongle, or to plug in such a device in order to get online.

O2 is looking to compete directly with Orange mobile broadband free laptop deals and every major mobile broadband provider seems to be constantly refreshing their offers in order to win new customers in a highly competitive marketplace.

Simple Broadband’s Communications Manager Simon Gerrard commented “Pay as you go mobile broadband from O2 could be a great way to try out the service, especially as the new dongle offer makes signing up a low risk.”

In a study carried out by industry regulator Ofcom, O2 staff were far more likely to give prospective business broadband clients information about the download and upload speeds that the provider could realistically offer on a given line without being prompted by the interested party.

O2 automatically gives out its predictions regarding connection speed in 54 per cent of calls, which is significantly more often than its major rivals in the business broadband market.

The least transparent provider was found to be BT, which would only let customers know as to the real speeds on offer, without being asked, in about 28 per cent of cases. Sky did not fare much better, giving accurate predictions as to download and upload speeds in 39 per cent of sales situations.

The number of calls in which firms confirmed that the speeds given were only estimates came to 40 per cent and in 31 per cent of calls, the customer was informed of other potential hurdles which could significantly reduce the connection speed in real terms.

A spokesperson for Ofcom said that the organisation was generally pleased with the figures, which show a rise in the number of callers who are being given specific, accurate and honest information as to the speed and quality of broadband service that a provider can offer before they commit to a contract. However, the organisation also believes that more can be done in this area.

Simple Broadband’s Communications Manager Simon Gerrard commented: “O2 is proving itself to be one of the most trustworthy broadband providers in the UK, for both home and business users, setting the bar for other providers.”

You will have to cast your mind back nearly a decade to when O2 was known as BT Cellnet in order to see the links between the two firms in their entirety. It was in 2001 that O2 was born from a variety of subsidiaries of BT and later bought out by Spanish firm Telefonica in 2006.

Mobile phone and mobile broadband packages have always been O2’s main products, but after first offering home broadband and then proposing home telephone deals, O2 looked as though it would be competing directly with BT for the same audiences.

But relations between O2 and BT are clearly healthy, as the pair have just signed a five year contract that will be worth millions of pounds and will commit the BT Wholesale division to overhauling O2’s mobile broadband network.

Well publicised performance hitches with the current 3G network operated by O2 are likely to have prompted the inception of the partnership and the large volume of mobile data traffic that O2 has had to handle as a result of its growing iPhone user base is also a contributing factor.

O2’s Nigel Purdy said that the deal was indicative of O2’s desire to keep its networks and products relevant well into the future.

Simple Broadband’s Simon Gerrard added “O2 is clearly taking on board any criticisms that have been levelled at its mobile broadband service in recent times. With Orange mobile broadband free laptop deals making headlines and its rivals offering wider network coverage, O2 will really be looking to maximise its network capabilities in the future and BT will help to make that a reality.”

YouGov, which is an independent organisation, compiled data relating to various key areas in mobile broadband and Orange came out at the top of 9 of these lists.

The survey revealed that customer satisfaction is one of Orange’s many strong points, along with the reliability of its mobile broadband connections. Orange was also top dog when it came to upload speeds, which few consider when comparing wireless broadband prices and its mobile broadband products are also deemed to be easier to use than some other providers.

The last YouGov survey of mobile broadband providers was published back in October 2009 and it also found that Orange was generally considered to be one of the best mobile broadband operators in the UK at the time.

Orange’s broadband’s Asif Aziz said that he and his firm were glad to have been voted to the top of the mobile broadband charts once more and that it was representative of the hard work that had been put into their products and deals.

Mr Aziz also said that Orange put its popularity down to the quality of its mobile broadband networks in combination with the high levels of customer service that it attempted to offer to all of its mobile broadband users.

Simple Broadband’s Simon Gerrard commented “Orange is leading the way in terms of customer service, spreading the good word about mobile broadband. Other providers may offer faster download speeds, but it is clear from this new survey that a significant proportion of customers are interested in quality and not quantity when comparing wireless broadband prices.”

Users looking for a free laptop to accompany their mobile broadband package are in luck, as O2 has cut the cost of certain deals in half, resulting in packages that previously cost £50 now setting you back just £25.

For your money you can choose one of Asus’ popular Eee PCs, which are compact netbook computers that favour portability over high-powered software. You can also connect to the internet at up to 3.6Mbps using O2’s 3G networks and there is a 3GB monthly data allowance for this particular bundle.

For those looking for a little more power to go with their mobile broadband, the £35 a month deal that includes a Samsung R519 with the same download speeds and data allowance might be more suitable.

Both of these packages can be augmented with an additional data allowance for £10 more a month, giving you a total of 10GB usage.

Given that current statistics indicate that more people are interested in free laptop deals than ever, these price reductions could really help to bolster O2’s customer base.

Simon Gerrard, Simple Broadband’s Communication Manager noted that “O2 has really upped the stakes here by cutting the prices of its mobile broadband packages. Currently every major provider is scrambling to grab new customers and with the price of Vodafone mobile broadband USB deals falling, alongside the cost of other packages, there are now plenty of ways in which to get online without breaking the bank.”

O2 is now going to offer new customers the chance to sign up to a 24 month mobile broadband contract that comes with a 3GB data allowance each month for just £10 for the first 4 months. This deal will also included unlimited access to a huge network of Wi-Fi hotspots around the UK, which means that the data allowance will not be constraining customers of this service.

If you are looking for a mobile broadband deal that does not require the lengthy commitment period of pay monthly contracts, then you will welcome the news that O2 has also cut the price of its standalone USB mobile broadband dongle by a third to just £20. Again unlimited Wi-Fi is included for all pay as you go customers and top-ups cost from as little as £2 a day for half a gigabyte of data allowance.

Orange is also taking to reducing the initial cost of its mobile broadband packages by giving new customers three months at half price. That means a 3GB monthly allowance on an 18 month contract is only £7.50 for the first three months and the 10GB tariff is just £12.50.

All of these contract deals from both O2 and Orange still include a free USB modem, so you really will be able to take advantage of the new lower wireless broadband prices. Simon Gerrard, Communications Manager at Simple Broadband added that “these are both limited time offers aimed at securing new customers before the end of January, so you will need to act fast if you want to take advantage of the savings on offer”.

On paper the trials sound very exciting indeed. O2 has partnered with Huawei, the firm that produces the majority of the mobile broadband dongles currently used by mobile broadband customers and it claims that the successful tests of LTE in Slough provided download speeds of up to 150Mbps.

Obviously this sounds to be very good news for everyone, although the roll out of LTE networking technology around the UK is not expected to begin in earnest for a couple of years. When it finally arrives it will mean better download speeds without a fixed line connection and many consider mobile broadband to be the most financially viable next generation broadband technology because it does not require that streets are dug up to lay cables with the associated disruption.

If this is indeed the case, traditional fixed line broadband ISPs could face stiff competition in the coming years and an all-out exodus to the more convenient and faster LTE services might even be on the cards. BT broadband options will be seeing improvements over the coming years with fibre to the cabinet technology providing faster broadband speeds to many customers, but it is the flexibility of mobile broadband’s next generation that could see it dominating the marketplace.

LTE technology is already commercially available in Sweden, with network provider TeliaSonera having launched the service for customers only recently. For the moment, the UK is lagging behind with this cutting edge connectivity, but O2’s trials could well generate some sense of urgency in the broadband market, accelerating evolution.

After recent studies identified Orange as the provider of some of the cheapest mobile broadband in the UK, as well as boasting 93% 3G coverage and a very satisfied customer base, other networks have had to react fast in order to save face.

O2 has therefore announced that it will be investing significant sums into expanding the reach of its 3G networks, with a total of more than 1500 new 3G base stations being built or converted to utilise the new technology.

It is not clear just how many new masts will go up around the UK, but converting existing 2G masts to 3G will certainly provide better coverage in the most underdeveloped areas.

London will of course be a focal point of the investment, with a total of 200 new base stations becoming active over the next year and a proposed group of 40 authorised for an update by Christmas 2009.

O2 has been famously nonchalant in its approach to 3G coverage up to this point and it was subject to threats of a potential fine back in 2008 when Ofcom reported that it was not adhering to the coverage levels dictated by its 3G licence.

According to O2 officials, the company did not fully appreciate the level of public demand relating to mobile broadband. It has therefore been focusing on its home broadband service, which has resulted in O2 becoming one of the most popular fixed line providers in the country.

Those looking for the cheapest mobile broadband in the UK could find their options greatly improved as a result of the increased competition offered by O2’s wider 3G coverage.

The maths for these mobile broadband and laptop offers is interesting. The monthly costs for a contract with a laptop is higher than a ’standard’ contract and it does require a two year commitment. However, the incremental charge can be of the order of £250 over the term of the contract (although it can be more, so do the sums) – £250 or so for a laptop is a not a bad price but its notional cost being spread over the course of 24 months is what makes these offers rather attractive.

The latest deal from O2 mobile broadband is for either an Asus 1005H laptop or a Samsung R519 laptop with a 24 month contract – whichever option you go for there is a £29.38 charge for the laptop. The monthly charge is then £24.48 (3Gb download limit) or £34.36 (10Gb) for the Asus 1005H and £34.26 (3Gb) or £44.05 (10Gb) for the Samsung R519.

These types of mobile broadband and laptop offers are becoming more widespread and will appeal to a wide range of mobile broadband customers but particularly those who wish to avoid the upfront costs of a laptop. Students are a clear target here but in times or recession where poor cash flow affects many people these deals will have wider appeal.