A MAJOR mobile provider is axing a key service used by thousands of customers within weeks.
O2 is set to shut down its pay-as-you-go data and iPad SIM services.
Many people connect their tablets using WiFi, but sims with mobile data are useful when this isn't possible.
The decision follows recent reports by , which revealed that O2 had already stopped selling these SIMs to new customers in August.
Now, existing users have been dealt a major blow with the announcement that the service will be completely discontinued on January 31, 2025.
Affected customers have received the following email from O2: "We're sorry to let you know that we're removing our Pay As You Go Mobile Broadband & iPad services from our portfolio on January 31, 2025.
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"Our customer account management portal will be closing on December 17, 2024.
"You can continue to use your service until January 31, 2025, after which time your service shall cease."
For example, customers could get 1GB for £3, but it had to be used within 24 hours.
Alternatively, £10 would get you 2GB for 90 days, £20 would get you 8GB for 90 days, and £30 would get you 12GB for a whole year.
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These plans were particularly useful for those who needed occasional data access on their tablets.
However, the upcoming shutdown in January is particularly harsh to those who opted for longer-term plans, such as the £30 for 12GB option.
Customers will need to use any outstanding data before the January 31 deadline, or they will lose it or have to seek a refund.
An O2 spokesperson added: "On January 31, we are removing our PAYG Mobile Broadband and iPad services, which have not been available for new customers since August.
"We have recently written to the small proportion of customers who will be impacted by this change and they can contact us directly should they require any further information or support."
To obtain a refund for any data not used on your account, you'll need to call O2 customer services on 0344 8090222 to provide your contact details so it can process your refund request.
Customers who wish to stay with the O2 network must now switch to pay monthly contracted data SIMs.
This requires choosing between a 30-day rolling contract, a 12-month deal, or a 24-month agreement.
For those who frequently use their pay-as-you-go data SIMs, these contracts could offer cost savings.
However, individuals with lower monthly data usage might find themselves paying more.
The 30-day rolling contracts offer the greatest flexibility, allowing customers to cancel with just 30 days' notice.
However, this flexibility comes at a higher cost. For instance, 1GB of data per month costs £20, while 50GB per month costs £30.
Alternatively, customers who have regular monthly data usage can opt for a 24-month contract, which offers 30GB for just £14.99 per month.
However, if you end a contract of this length early, you will have to pay an early termination fee, which means covering the remaining cost of the contract.
Customers could also choose to purchase a regular SIM card that includes calls, texts, and data, and use it in their tablets.
For example, O2 offers a preloaded pay-as-you-go SIM with 250GB of data for just £30 per moth.
What is pay-as-you-go (PAYG)?
PAY-As-You-Go (PAYG) is a flexible mobile payment option that allows you to pay for your mobile usage upfront, without the need for a long-term contract.
Unlike contract plans, there are no monthly bills or commitments.
You only pay for what you use, making it ideal for those who want to control their spending.
When you make a call, send a text, or use data, the cost is deducted from your credit balance.
Once your credit runs out, you simply top up again to continue using the service.
Some providers offer preloaded PAYG SIMs with a set amount of data, calls, and texts.
For example, you might get a SIM preloaded with 250GB of data for a set price.
Be aware that some PAYG top-ups or preloaded data plans may have an expiry date, meaning you need to use the credit or data within a specified period.
THE ALTERNATIVES
If you're unwilling to commit to a pay monthly data SIM contract or wish to switch from O2, you might be able to get a cheaper deal elsewhere.
For example, Lebara, which runs off the Vodafone network, offers a preloaded 30-day unlimited data SIM for just £12.50.
Asda Mobile, which also runs off the Vodafone network offers a £5 pay-as-you-go SIM preloaded with 3GB of data.
GiffGaff, another network which runs off the O2 network, also offers a £10 pay-as-you-go SIM preloaded with 15GB of data.
To find the best offers, visit comparison websites, including uswitch.com or moneysavingexpert.com/cheap-mobile-finder/sim-only/.
These websites typically offer lower introductory rates compared to those available directly from providers.
You can also purchase preloaded data SIMs from Amazon.co.uk.
For example, customers can get a Three SIM preloaded with 80GB of data each month until 8th August 2025, for just £39.99.
These SIMs are versatile and can be used in a variety of devices, including tablets, laptops, and smartwatches.
CUT YOUR TELECOM COSTS
SWITCHING contracts is one of the single best ways to save money on your mobile, broadband and TV bills.
But if you can't switch mid-contract without facing a penalty, you'd be best to hold off until it's up for renewal.
But don't just switch contracts because the price is cheaper than what you're currently paying.
Take a look at your minutes and texts, as well as your data usage, to find out which deal is best for you.
For example, if you're a heavy internet user, it's worth finding a deal that accommodates this so you don't have to spend extra on bundles or add-ons each month.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It's a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, allowances and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you don't want to switch and are happy with the service you're getting under your current provider - haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you're given after your deal.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won't have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won't haggle, you can always threaten to leave.
Companies don't want to lose customers and may come up with a last-minute offer to keep you.
It's also worth investigating social tariffs. These deals have been created for people who are receiving certain benefits.
OTHER TELECOM CHANGES
Plusnet, part of the BT Group, permanently closed its mobile arm in June.
Plusnet is also in the process of axing its landline services for good.
The telecoms firm told The Sun that it will no longer offer home phone services to existing customers once analogue services are switched off.
This means that customers who still want landline phone service in the future will be forced to move to a different telephone company that offers a digital service.
It comes as all copper-based phone lines will be switched off by the end of December 2025.
Telecom firms have also faced criticism for implementing mid-contract price rises on fixed contracts that exceed inflation over the past four years.
Due to clauses in contracts, providers are allowed to impose annual increases, typically in April.
These hikes are linked to either the Consumer Price Index or Retail Price Index inflation rate, which has surged during the cost-of-living crisis.
As a result, millions of customers experienced increases of up to 8.8% this year, adding as much as £50 to their bills.
However, from January 17 2025, Ofcom will require telecom firms to display mid-contract price increases in pounds and pence.
The rules are designed to protect customers by ensuring they know exactly how much their contract will increase before they sign up.
Instead of being linked to inflation, which can fluctuate, the price rises will be clearly stated in pounds and pence.
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However, some experts have slammed the rule change for "unfairly" impacting customers on cheaper contracts.
In August, The Sun revealed that millions of mobile and broadband customers on cheaper contracts will be hit by huge bill rises under the new mechanism.