T-Mobile could launch a pay-per-use mobile broadband offering, placing it in direct competition with Vodafone.

Richard Warmsley, head of Mobile Internet and Entertainment at the provider, has revealed that such an offering – similar to Vodafone's TopUp and Go product - could come on the market soon.

According to Mr Warmsley, the option will give mobile broadband customers added flexibility when choosing a package.

He said: "This year we will shift into pay-per-day/week/month options for new customers. This will give the mass market a chance to try mobile broadband.

"They can purchase their dongle and pay for usage as and when they need it. 1-2Mb is typical on our network, 2-3Mb is achievable, and you can get 4.5Mb in bigger cities, depending on the circumstances."

Vodafone currently charges £39 for a USB modem stick along with 1GB worth of data in its TopUp and Go offer.