UK carrier O2 has decided to dramatically improve its phone plans, with a particular emphasis on the iPhone, reports say. While owners of other phones will have to wait for their contracts to renew before seeing benefits, existing iPhone owners will be able to switch to expanded plans come February 1st. Those paying for the £35-per-month contract will receive three times their current minutes, and double the number of SMS messages; new is the £45-per-month plan, which will grant the same amount of minutes and texts as the former £55 plan.

Those already on the £55 plan will have to migrate, either to the £45 plan or an upper-tier £75 option, which supplies 3,000 minutes and 500 texts. O2 is defaulting people to the cheaper of the two. Finally, mirroring AT&T's actions in the US, O2 will also add the iPhone to its business plans by the end of the year.

The carrier is meanwhile claiming to have seen a substantial increase in the amount of in-store traffic within the past two months, directly related to the iPhone. Traffic is said to have tripled over normal rates, which may bode well for next month's quarterly results report. Third-party reports suggest though that iPhone sales have fallen below targets, hitting 190,000 in two months instead of O2's predicted 200,000. Research firm Gartner once predicted figures between 350,000 and 400,000, creating even greater disappointment.