On Friday, O2 will launch the Palm Pre in the United Kingdome, however, O2 network issues which have frustrated iPhone users looks to continue as O2 chief exec, Matthew Key has said smartphone demand on the network had caused significant “growing pains” reports the Times online.

Key also stated that the amount of data traffic handled doubled every 3 months, although the network problem is limited to isolated areas, especially in London, and added…”It’s improving all the time but it’s probably six to eight weeks until we’re out of the woods on the issue.”

With O2 launching the Palm Pre this week it will no doubt tempt more people to upgrade to a smartphone, and is set to cause quite a buzz in the run up to Christmas. At a Palm Pre launch in Germany this week, 150 people queued in the rain to nab the Palm Pre at midnight.