O2 is offering free fixed-line broadband to iPhone 3G customers who purchase the mobile internet dongle.

Telefónica O2 UK Limited is offering free fixed-line broadband to iPhone 3G customers who purchase the 3GB internet tethering bolt-on before the end of 2009.

The telecommunications company has launched its iPhone Total Connectivity Bolt-On – which allows new and existing iPhone customers to purchase the 3GB iPhone Internet Tethering bolt-on and receive the standard O2 Home Broadband package completely free.

The bolt-on is priced at £9.79 per month, enabling customers to connect an iPhone to a laptop, which will operate like a mobile broadband dongle.

The discounted service must be taken up before 31 December 2009, and will be compatible with all versions of the Apple iPhone 3G.

Alternatively, customers can claim a £7.34pm discount against any other O2 Home Broadband product including Premium, Pro or O2 Home Broadband Access.

Peter Rampling, Head of Consumer Mobile at O2, said: “This is a brilliant deal for people who want tethering and home internet. Effectively you get both for just £9.79 a month. Total Connectivity means our customers will always be connected, at home and on the move.”

Competitor Orange charges £15 for its 3GB internet tethering option, similar to the £14.68 that O2 charged previously.

However, while Orange has been giving free landline broadband with its pay monthly packages for some time already, unlike O2, the France Telecom-owned mobile network has apparently struggled to deliver a great broadband experience for its customers.

Telefónica O2 UK Limited is a leading communications company for consumers and businesses in the UK, with 21 million mobile customers and 527,126 fixed broadband customers as at 30 September 2009. In 2006 Telefónica Europe acquired Be*, the UK fixed broadband provider, and in October 2007 O2 launched its broadband service using the Be* network.

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