O2 gets the Iphone, like we said

The cost will be £269 (inc VAT) for an 8GB model - the 4GB version appears to have disappeared. 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 unlimited anytime, anywhere mobile data usage plus free unlimited use of O2's Wi-fi network.

The phone 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. No mention is made of any pre-paid version - unlike the 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 data traffic. µ