O2 is on the verge of wrapping up a deal to exclusively sell the Apple iPhone in the UK with a view to launching the iPod-based handset by Christmas.
A number of Europe's largest operators have been linked with a deal to sell the iPhone in Europe over recent weeks. It is understood that formal deals are now imminent and that O2 is about to sign a contract to sell the handset in the UK. It is understood that T-Mobile, Germany's largest operator, will sell the iPhone exclusively in Germany, while Orange, France's largest mobile phone company, has won the race to sell the handset in France. The iPhone is due to launch across those territories in November.
There has yet to be official confirmation of any deals and a spokesman for the UK's largest mobile operator said: "O2 has not signed a deal with Apple." None of the mobile phone operators would comment on the process given the complexity of negotiations with Apple.
Competition among mobile phone operators for a deal with Apple has been fierce, with the iPod maker understood to have driven a hard bargain. One source said that securing the most talked about handset of all time on an exclusive basis and making the economics work had proved a tough balancing act.
and from mocoNews
O2 Close To Clinching iPhone Deal in UK
By Rafat Ali - Wed 04 Jul 2007 11:31 PM PST
Everyone and their mother-in-law is reporting that European operator O2, owned by Spanish telecom giant Telefonica, is close to clinching the deal to launch Apple’s iPhone in UK...this comes after reports that Vodafone almost had it, so unless the deal is announced, it is not a deal. Apple is expecting to launch in UK, France and Germany this fall, and follow elsewhere in Europe and in Asia next year. Telegraph reports that negotiations are continuing with mobile phone retailers including Carphone Warehouse over an agreement to sell the iPhone in their stores after a period of exclusivity with O2.
What this means is that iPhone will possibly be on the slower 2.5G network, same as AT&T in U.S., not the 3G as expected by others.
Independent: In other countries, T-Mobile is said to be close in Germany, its home market, while Orange is the likely front-runner in France. Apple had initially looked to sign a distribution deal with a single operator across Europe, putting Vodafone - Europe’s largest carrier - in a strong position, the story says, but has now decided instead to sign separate deals with the largest operator in each European market.
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