In news that its customers will be happy to hear, O2 has revealed plans for a big upgrade to its UK network, with £500 million investment over the last 2 years.

The operator - which currently offers data-happy phones such as the Apple iPhone and the Palm Pre - is looking to improve its data handling capabilities.

As part of the plans, London will see around 40 new mobile data hotspots in the city by the end of the year, with another 160 following on in the next year.

Meanwhile the rest of the country will see another 1500 new locations to boost service across the UK.

Derek McManus, chief technology officer at O2 UK, said that the company predicts a surge in data usage over the next year and is working to improve its network capacity for the future.