O2 has been slow to improve the levels of 3G coverage that it can offer to its UK customers, with its current coverage levels of 84% putting it at the bottom of the pile when contrasted with other UK providers.

After recent studies identified Orange as the provider of some of the cheapest mobile broadband in the UK, as well as boasting 93% 3G coverage and a very satisfied customer base, other networks have had to react fast in order to save face.

O2 has therefore announced that it will be investing significant sums into expanding the reach of its 3G networks, with a total of more than 1500 new 3G base stations being built or converted to utilise the new technology.

It is not clear just how many new masts will go up around the UK, but converting existing 2G masts to 3G will certainly provide better coverage in the most underdeveloped areas.

London will of course be a focal point of the investment, with a total of 200 new base stations becoming active over the next year and a proposed group of 40 authorised for an update by Christmas 2009.

O2 has been famously nonchalant in its approach to 3G coverage up to this point and it was subject to threats of a potential fine back in 2008 when Ofcom reported that it was not adhering to the coverage levels dictated by its 3G licence.

According to O2 officials, the company did not fully appreciate the level of public demand relating to mobile broadband. It has therefore been focusing on its home broadband service, which has resulted in O2 becoming one of the most popular fixed line providers in the country.

Those looking for the cheapest mobile broadband in the UK could find their options greatly improved as a result of the increased competition offered by O2’s wider 3G coverage.