Vodafone has launched a new USB modem stick, which it describes as its smallest plug and play device yet.

The device, which has been developed in conjunction with China-based technology firm Huawei, uses the same technology as its predecessor the E220 to offer users download speeds of up to 7.2 mbps.

Compatible with both Mac OSX and Windows XP, it is priced from £49 with an 18-month contract and is available on the £25 mobile broadband flat rate.

However, mobile broadband customers who opt for a two-year contact will be entitled to three months free.

Enterprise director for Vodafone UK Kyle Whitehall, said: "Vodafone was the first to improve download speeds with HSDPA, the first to increase upload speeds with HSUPA, and now we're pushing the boundaries of usability even further with a groundbreaking compact design."

At present the service is only available in central London and at the UK's air transport hubs.