Communications giant O2 has announced that it has removed the proposed 200MB per month download restriction for users of Apple's new broadband-enabled iPhone.

The news that the broadband provider has removed its Fair Usage Policy was revealed in an interview with O2's chief executive Matthew Key in the Telegraph.

Mr Key attributed the move to a desire to simplify the terms of O2's offers for its customers.

He said: "Customers find 'unlimited with limits' confusing, plus most people don't speak in megabits or understand what they equate to, so we've taken the decision to remove the fair usage cap so that 'unlimited' really does mean 'unlimited' - this is a market first."

In a previous interview, Mr Key said that he anticipated that O2 will shift "a couple of hundred thousand" iPhones in the first two months of its released.

The iPhone is set for release Friday November 9th.