(I work for Vodafone on this this portal but this isn't an official comment.)

Vodafone sells the iPhone in 9 countries but not the UK - this portal works on the N95, N96, HTMC Magic, F490 and iPhone.

There are loads of unlocked iPhones in the UK - check eBay! But there are also loads locked to Vodafone in Portugal.

Remember, Vodafone is more than just the UK market.

T

Vodafone have had an iPhone here in Australia since 3G release.

Surely Vodafone could use it's existing rights in UK?

Makes sense if O2 are to get the Palm Pre. Telefonica has deals made for exclusivity for the Pre and they are a Spanish part of the O2 company.