iPhone will be on O2 in the UK

After yesterdays post about T Mobile apparently winning the rights to the iPhone in Germany it appears that O2 has won the rights in the UK.

According to The Times Vodafone turned down the deal as it wasn't commercially viable and O2 will be selling the iPhone in the UK before Christmas.

The iPhone is likely to retail at £300 and O2 apparently will allow Carphone Warehouse to sell the iPhone after the initial launch period.

Apple’s agreement with O2 is thought to include a continuing share of the revenues generated by each iPhone customer. O2 ’s network will also have to be specially configured to accommodate the Apple handset.

The deal is huge news for O2 and Carphone Warehouse, the buzz in the US shows that the phone is as popular as expected and there is no doubt it will get the same reception over here.

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O2 has beaten its rivals to win the exclusive UK rights to offer Apple’s iPhone. The tie-up, the mobile phone industry’s most sought-after deal in years, marks a major coup for the 18 million-customer group. The final contract is expected to be signed imminently.

According to the report the iPhone will retail at £300 in a market where most high-end phones are free.

The article also suggests that Orange is the front-runner in France.

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[Update - 5 July 2007 - 08.00 BST] - One reader, Mark Sutton has previously contacted World of Apple regarding a conversation they had with O2 customer support. According to Mark Sutton O2 customer services ensured him that the iPhone would come in the fourth quarter of this year and that the message had been received by internal memo.

World of APple has attempted to get more details from O2 customer services with no success.