The media swarmed to an Apple store on Regent Street, London, to hear Apple's Steve Jobs and Matthew Key of 02 discuss the exclusive deal O2 will have on the iPhone. Unmentioned was the length of time the 'exclusive' deal covered, or how much Apple pocketed in the deal.
Jobs stressed the decision was based on cultural compatibilities more so than financial ones. Customers, however, are paying dearly. The phone has a price tag of $536 and then activates it via iTunes on their home computer. At this point, they choose service, pay for it, and complete the device activation.
The iPhone will connect to the O2 GSM network for calls and the EDGE for data. If EDGE isn't available, a GPRS connection can be used. According to Jobs, 3G is still too power hungry which would cause the iPhone's battery life to plummet. WiFi is built into the phones to bridge the gap from Edge to an eventual power-tame 3G.
For those of you waiting for the price to be slashed as happened in the US--there are no plans for that yet. How important are bragging rights?