Three axes excess data usage charges

Three has launched a range of new unlimited smartphone contracts, as well as one that promises not to bill customers for exceeding inclusive data allowances.

The company said on Wednesday that the new plans are being offered in response to growing customer demand for data.

"The new plans have been driven by the massive increase in mobile data usage over the last 18 months, and insight from customers that they want to keep better control of their costs," Three said in a statement. "They ensure that smartphone customers can enjoy all the benefits of internet on the move, without fear of data bill shock."

The plans have two tiers, one which comes with unlimited data — called the 'Ultimate Internet' — and some with a 250MB cap, called 'Essential Internet'.

All Ultimate Internet plans have unlimited "all you can eat" data allowances and include between 100 and 1000 talk time minutes. Pricing for the contracts begins at £18.

For less demanding users, the Essential Internet option offers between 100 and 500 voice minutes and 250MB of mobile data usage. Pricing begins at £15. If a user on the essential internet plan reaches their data limit they will receive a text to inform them, they can then decide whether to add an extra 250MB of data for £2 or a £5 unlimited data add-on.

Essential Internet customers can also choose to upgrade to an Ultimate plan at any point, Three added.

Three already offered an unlimited internet, voice and text contract option called 'The One Plan'.

T-Mobile also has a contract option, called 'The Full Monty' that includes unlimited, call, text and data limits.

In March, telecoms watchdog Ofcom urged operators to adopt self-regulation of international global roaming caps to help eliminate the problem of 'bill shock'.

A Cisco Visual Networking Index report in February suggested that the end of 'all you can eat' contracts could be in sight due to the increasing amounts data being used on mobile devices.