In an question and answer session with Times online readers, O2 head Matthew Key spoke about the iPhone and how the company is addressing network issues.

When asked about how O2 was handling losing the exclusivity of the iPhone Key responded by saying that O2 will allow current iPhone owners to unlock their iPhones for use on other UK networks.

, we will allow O2 customers to unlock their iPhones, although of course they will still need to honour any outstanding contract period they have. At the end of their contract period, they are entirely free to move to another operator

Additionally when asked about poor 3G network coverage across the UK Key outlined some of O2’s future plans for network capacity expansion. In particular in London where capacity has been stretched severely in the last few months. The O2 boss said that the UK carrier had seen an 18-fold increase in data usage over the last year and would start by investing £30 million to “address capacity issues in London alone between now and Christmas and I’m confident that we’ll see much improved levels of service as a result.”