O2 is all set to launch its mobile broadband service. Initially, the services will be available only to the existing customer base of O2. Users will be given an 18-month contract, along with a free USB modem. They will need to pay £20 per month for a 3G broadband service.

The UK division of this European mobile phone operator is launching its Mobile Broadband service, which it states will let laptop users enjoy easy, reliable and fast Internet access on the go. The users will be given a 3GB-per-month “fair use” cap. Users who are interested in a rolling month-on-month contract will need to pay £120 for the modem up-front. O2’s pricing for the mobile broadband service is quite reasonable.

O2 is in the process of upgrading its 3G networks, which will boost its speed from 1.8Gbps to 3.6Gbps across the country. The company was investing the money keeping in mind the benefit of O2’s mobile broadband offering. Contrary to the popular belief, it was not preparation for the expected introduction of the 3G iPhone in the near future.