O2 iPhone tethering

by James

O2 has published its iPhone tethering rates for the UK (tethering means connecting your laptop to the web using your iPhone’s internet connection). A 3GB connection costs £14.68/month — 10GB is £29.36/month.

The 3GB package is almost five times more expensive than what I pay for home broadband: O2 charges £5/GB, I pay just £1/GB at home.

I’m not saying this out of cynicism (I don’t know the costs involved in mobile phone networking), more out of curiosity. Are these reasonable rates? I’m not sure. I do image, though, that O2 will make a good profit here — and maybe the company is using higher rates to discourage casual users from overloading their network?