O2 will scrap unlimited data packages for its UK smartphone users by end-June, claiming the move will make it easier for subscribers to understand data charges.
Customers on two-year contracts priced up to £35 (€42.47) per month will be limited to 500MB of data each month, while those paying up to £45 will be cut off after 750MB.
Smartphone users paying £60 per month will get 1GB of inclusive data.
Although the new tariffs come into effect on June 24, O2 will allow a grace period until October 1 before charging users £5 for an additional 500MB of data, and £10 for 1GB.
O2 said the basic 500MB per month offers two-and-a-half times the capacity most users consume today, and that 97% of its smartphone users won’t be affected by the changes.
CEO Ronan Dunne said the changes would improve user experience, while allowing the cellco to “better manage demand,” for mobile data services.
O2 is the latest carrier to abandon all-you-can-eat data plans, after US carrier AT&T announced a 200MB limit for subscribers earlier this month.
The pair introduced unlimited packages when they started selling Apple’s iPhone, but are now looking for ways to control the high demand for mobile data from all smartphone users.
Analysts say cellcos are starting to move to more realistic pricing for mobile data, and expect O2’s domestic rivals to quickly follow suit, FT.com reports.