As expected, Apple Inc. announced Tuesday that O2 will be the exclusive carrier for the iPhone in the UK. At a media event in London, the company said that the iPhone would be available on November 9th for £269 (US$536.07 at current exchange rates, but the UK price includes VAT taxes in the stated retail price) for the 8GB model. An 18-month contract with O2 is required, and the device will be sold at Apple's retail stores, through O2, and at Carphone Warehouse retail and online outlets, and Tarriffs, or the service, will start at £35 per month.

"We're thrilled to be partnering with O2 to offer our revolutionary iPhone to UK customers," Apple CEO Steve Jobs said in a statement. "US iPhone customer satisfaction is off the charts, and we can't wait to let UK customers get their hands on it and learn what they think of it."

"Our strategy at O2 is to bring our customers the best products and experiences," said Matthew Key, CEO, O2 UK. "The iPhone is a breakthrough that is changing the way people use their mobiles forever, and we're thrilled to have it exclusively for O2 customers in the UK."

Apple will launch the iPhone in the UK market with its newly announced iTunes Wi-Fi Music Store. The service allows users to buy songs through their iPhones without using a Mac or PC. Songs are then synced to iTunes the next time they dock with their computer.

According to Apple, iPhone activation will require an Internet connection; an iTunes Store account or a major credit card; the latest version of iTunes and a PC or Mac with a USB 2.0 port and one of the following operating systems: Mac OS X v10.4.10 or later; Windows XP Home or Professional with Service Pack 2 or later; or Windows Vista Home Premium, Business, Enterprise or Ultimate Edition. Existing O2 customers will have the option of keeping their existing phone number and upgrading their account to work with iPhone while new customers can also simply and easily transfer their current mobile number to O2.