Downsize your deals and save!

Whether it's dongles or mobile phones, we show you why great things come in smaller (and cheaper) packages...

A few weeks ago, I looked at the impact of falling inflation, together with the items which have remained low among rising food prices.

But while food may be going up, one group of items coming down in price is technology, such as mobiles and broadband.

And, with several companies vying for your business, it couldn't be a better time to review what you're getting and switch to a better deal.

Bargain broadband

I remember my first broadband package. It cost almost £20 a month for a pretty slow service.

Things have moved on since then, and today you can get around five times the speed for less than half the price I first paid.

The cheapest standalone broadband service at the moment is Plusnet's Value package, which offers 8Mb broadband, free connection, and a free wireless router for just £5.99 per month. However, it does come with a download cap of 10GB a month.

For more avid streamers and downloaders, O2 offers unlimited downloads from £7.34 per month (if you're an existing O2 customer), including free connection and a router. O2 is also currently offering three months free broadband if you opt for its Premium or Pro packages.

If you're an existing Sky customer with Sky Talk, you can also get its 'base' 2Mb broadband service free, so make sure you're not shelling out for unnecessary services.

Discounted dongles

If you don't have a telephone line at home, or simply want broadband access on the move, a dongle could provide the perfect solution.

The days when dongles were just a passing fad are over. Not only are they much cheaper, but they are no longer the cumbersome devices they were when they first launched.

However, you'll have to tie yourself in to pick up a bargain, as the best deals often involve signing a lengthy two year contract.

Here's what you can get with an 18 month contract:

You can now can now get your hands on a dongle for as little as £10 a month, with 3 Mobile and Orange both offering 1GB of downloads and a free dongle for a tenner.

Just remember that 1GB doesn't get you far in the dongle world, so it's worth assessing your average use before diving in for the cheapest option.

This handy calculator from Virgin Mobile will give you an idea of what all that surf time and YouTube-ing will cost you, and will help you assess the right plan for your needs.

As well as price, several other factors should be considered before you invest in a dongle. For example, while 3 Mobile and Orange may provide the cheapest options, they may not necessarily offer the best value.

Both O2 and T-Mobile offer Wi-Fi Hotspot access with their plans, which could come in handy while on the move. More importantly, it won't eat into your precious monthly allowance either.

Performance is also a very important factor to consider. After all, it's no use having a bargain dongle if you end up trudging, instead of surfing the web.

Last year, I reviewed five of the best dongles, and while Vodafone topped the charts, O2's was left to bring up the rear.

Obviously, the coverage you get will depend on where you live, and with O2 the network behind the iPhone, my guess is they've improved in the 3G department since my test. The important thing is to check if your favoured network operates in your area before signing up.

In terms of performance, it's also worth noting that Virgin dongles use T-Mobile's network to operate, while rival network '3' also shares the same masts as T-Mobile, so you can expect similar service and coverage across all three.

Mobile phone bargains

A round up of deals wouldn't be complete without looking at the plethora of cheap mobile phone deals.

Gone are the days when you had to fork out a princely sum each month to get a decent contract, and with the introduction of SIM only deals, provided you're willing to use your old handset, you can get hundreds of minutes and texts for a fraction of the price.

For those allergic to any type of contract, Vodafone has recently introduced a new service on its pay as you go service, where you can add more value to your top-up by converting it into a 'Freedom pack'.

So, instead of your usual £10 top-up, you can convert this to 100 minutes and 300 texts, worth £50 in credit.

This type of flexible tariff joins Tesco's pay monthly deal, where £10 a month gives you any combination of up to 400 or 800 texts to your five favourite numbers.

This deal is excellent for anyone who calls and texts a few particular people each month, although it can all become a bit of a popularity contest if you have more than just a few good mates.

Downsizing your deals doesn't mean you have to miss out, and as more companies jump on the technology bandwagon, performance will go up, while prices will slowly come down.

So, it's time to ask yourself some questions. Like do you really need that 20Mb broadband? And is it important to have that shiny new handset? If the answer to these questions is no, it may be time to switch to a cheaper deal.

It could save you a lot of money.

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