O2 enters mobile broadband market

O2 has become the latest major network to enter the mobile broadband age by launching a new service giving customers flexible access to the internet.

Existing O2 customers will now be able to acquire a USB 'dongle' that will enable them to surf the web via 3G or Wi-Fi.

The modem is priced at £119.99 for those signing up for a rolling one month contract but it is free for consumers on an 18-month contract for £20.

Jonathan Earle, head of post pay acquisitions (for whom? O2?), said: "It is plug and play, so it is really simple to use. It does exactly what it says on the tin.

"We will be investing £500m to upgrade our network. We are not setting out to be the cheapest, but we want to give customers the best."

The service offers speeds of up to 1.8Mbps and has a 3GB data cap. However, customers will not be charged for exceeding this limit until after October 31st, when they will incur a 20p per megabyte cost.