Mobile phone handsets that double as electronic swipe-and-go travelcards, credit cards, and even supermarket loyalty cards, could hit the high street within the next few years.

Vodafone is to add 50 shops to its 350-strong retail network over the coming 12 months, hiring an extra 200-plus staff on top of the 300 already being recruited to improve its face-to-face customer service.

Shoppers will flock to 1,250 stores across Britain today in search of the new 3G iPhone, Apple's combined music player, phone and internet browser. Many will be disappointed.

The next generation iPhone hits the high street this week, but the rush to pre-order on the internet was enough to crash the website and sell out within just a few hours.

The cost of Apple's iPhone handset is being cut to attract new customers.

O2 has signed a deal with Napster, the online music site, that gives the mobile operator's subscribers access to 5 million tracks for download to both the phone and PC.

O2 has just four months to avoid contract penalties that would cost it £40m following a warning shot fired across its bows by the telecoms regulator yesterday.

Mobile phone company O2 was today threatened with regulatory action after it failed to meet a deadline to provide its 3G network to 80% of the UK population.