The number of short term mobile broadband packages is set to rise over the course of the year, according to comparison site Top 10 Broadband.

The website claims that, as the economic downturn worsens and households attempt to reign in their budgets, the popularity of short term or no contract home broadband packages has soared and the mobile broadband industry looks likely to follow this pattern.

Reportedly, the number of people opting for short-term mobile broadband deals has increased four-fold since the start of 2009, now accounting for five per cent of total mobile broadband sales. Currently, O2 is the only major mobile broadband provider to offer short term deals, but Top 10 Broadband anticipates that its competitors will soon emulate its example.

Under O2's deal, customers can forgo being tied into 12-month contract or longer in place of a one month contract. Associated costs include £29.35 up front for a mobile broadband dongle or modem, and download rates of £5 per GB. Jessica McArdle, marketing manager at Top 10 Broadband, said: "One-month mobile broadband deals are soaring in popularity during the current recession as wary users are shunning long-term broadband contracts in favour of 'light' commitments.

Last year, mobile broadband changed the UK broadband industry forever; now with new one-month deals, mobile broadband is continuing to cause game-changing shockwaves." She added: "Many fixed-line only broadband providers must be quivering in their cabled boots." As mobile broadband gains prominence but household budgets shrink, many operators are slashing their prices in an attempt to draw customers.

This week, for example, 3 Mobile cut the price of its USB modems from £48.93 to £29.35 on pay as you go deals. It also launched a new 24-month plan with a 15GB per month allowance for just £15.