We got word that telecommunications company O2, which is owned by Spain's Telefonica, has just secured the exclusive UK rights to offer the Apple iPhone. If you're wondering about the T-Mobile contract, it turns out that it's only good in its home country of Germany and not for the whole of Europe.

The terms of the agreement are still not clear but according to the Times Online, the two companies will have a continuing share of the revenues generated by each iPhone customer. Also, O2's own network will be modified to accommodate the iPhone. The UK has a mobile phone consumer base of 18 million.

Apple is also having on-going negotiations with different companies in other countries in the continent and that more contracts are likely to be signed soon. Those in the know are saying that for France, the iPhone is likely to be distributed by company Orange.

Lastly, it was reported as well that rival phone manufacturers are preparing new lines of mobile phones geared to kill the iPhone fever for Vodafone as well as other telecommunications firms. The Apple iPhone is expected to arrive in UK this December with a price tag of GBP 300 GBP or roughly US$ 604.