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O2 picked for UK iPhoneBy Tony DennisApple has selected O2 as it network partner for the November 9th launch of the Iphone in the UK. This had been predicted here at Mobile Software Insight. The cost will be £269 (inc VAT) for an 8GB model – the 4GB version isn't on offer. That's about £229 before tax which is roughly $50 than it costs in the USA. Customers will need to install iTunes software on a Mac or a PC to activate the phone. To support the iPhone launch, O2 has introduced three new tariffs starting from £35. These will include all-you-can-eat data usage plus free unlimited use of The Cloud's Wi-Fi network. The iPhone will be on sale via the retail and online stores of Apple, O2 and The Carphone Warehouse. As usual there's a requirement to take out an 18 month contract with O2. There's no chance of a pre-paid version – unlike the United States. The Wi-fi facility is intended to encourage the use of Apple's recently launched iTunes Wi-Fi music store. Confirmation of the revenue sharing agreement which Apple has struck with O2 have yet to emerge. However, it's widely believed to be a massive 40 per cent of all revenues. Something which has worried the other UK network operators as it sets a dangerous precedent. It also clear that O2 probably wasn't aware that Apple was going to launch the iPOD Touch - shortly before this iPhone announcement. The Touch is just like an iPhone but without the handset capability.
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