Apple has announced that O2 will be the exclusive UK mobile carrier for its iPhone when it makes its debut in the UK on 9 November.
A major competition problem for the iPhone in the UK market is that it will be supported by only O2's slower 2.5G (GPRS) network for most use. Nokia's rival high-end N95 series multimedia devices are served by higher speed 3G networks.
Apple sold its one millionth iPhone 74 days after it went on sale in the US on 29 June.
"We are thrilled to be partnering with O2 to offer our revolutionary iPhone to UK customers," said Steve Jobs, Apple's CEO. "US iPhone customer satisfaction is off the charts, and we cannot wait to let UK customers get their hands on it and learn what they think of it."
Matthew Key, CEO for O2 UK, said, "The iPhone is a breakthrough that is changing the way people use their mobiles forever, and we are thrilled to have it exclusively for O2 customers in the UK."
O2 said iPhone users in the UK will be able to activate their new iPhones using Apple's popular iTunes software running on a PC or Mac computer "in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated".
A mobile phone in a mobile store normally takes only minutes to activate, and Apple has been criticised for forcing users to use iTunes to be able to use the iPhone.
The iPhone is scheduled to go on sale on 9 November and will be sold exclusively in the UK through Apple's retail and online stores, O2 and The Carphone Warehouse's retail and online stores.
The iPhone will be available as an 8GB model for £269 (inc VAT) and will work with either a PC or Mac.
Three iPhone tariffs will be available from O2, starting at £35, which all include unlimited anytime, anywhere mobile data usage - including the use of 7,500 higher speed Wi-Fi hotspots.