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Internet service provider O2 has revised its broadband offering for users of mobile devices such as smartphones, scrapping its unlimited usage allowance option.

The firm says it has moved to provide customers with a new, more transparent pricing model for its broadband deals, based upon usage limits.

Consumers paying £25, £30 and £35 tariffs for data services plus unlimited Wi-Fi are now subject to a 500MB usage limit.

However, O2 says this is 2.5 times the average smartphone owner's level of usage, so their browsing habits should not be affected.

Subscribers paying £40 and £45 per month qualify for a 750MB allowance, with those on a £60 contract gaining 1GB.

O2 Chief Executive Ronan Dunne said customers are looking for clarity in pricing as "too many offers have clauses and catches which are not easy to understand".

"With the wide range of internet-based services now available on mobile devices, we're providing customers with generous clear data bundles that give customers freedom," he added.

"This enables us to provide a better overall experience for the vast majority of customers and to better manage demand."

Last week, O2 launched the Dell Streak tablet device in the UK, as a rival to the Apple iPad.

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