UK’s O2 has today (August 2) launched its Pay & Go Pocket Hotspot, a new device that enables users to create their own WiFi hotspot to access the internet on the go, Digital Spy said.

The firm's new Mobile Wifi, or 'MiFi', product fits in your pocket and allows up to five devices to connect simultaneously and share the 3G mobile internet access.

The Pay & Go Pocket Hotspot carries the one-off cost of £59.99, and then internet access is offered across a number of different pay-as-you-go payment plans.

Users can pay £2.04 for a daily allocation of 200MB of data, or they can opt for monthly plans of 1GB or 2GB of data, costing £10.21 or £15.32 respectively. There are no long-term contracts with the device, just pay and go.

Gary Booker, the general manager of consumer at O2, said that his company "saw a big gap in the market for a Mobile Wifi package that offered lower start-up costs and competitive data".

O2's Pocket Hotspot offers 802.11b/g Wi-Fi connectivity and supports maximum download speeds of 21.6 Mbps and upload rates of 5.76 Mbps.

The benefit of using a Mifi device over an individual data plan is that internet can be shared with other devices, meaning users can get additional value from their service.

However, anyone who buys the product will not be able to use it at the London 2012 Olympic Games as wireless access points and 3G hubs have been banned by the organisers.

But Booker feels that Mifi devices will be important in the future as more people want to access the web with their devices while out and about.

Last month, O2 announced plans to compensate all of its customers in the UK after an embarrassing technical problem left some users of its network without services for more than 24 hours.