Rumor Mill: O2 close to deal for iPhone

Telefonica's O2 mobile-phone business is rumored to be close to scoring a deal as Apple's exclusive network operator for the iPhone in the U.K., according to the Financial Times. According to the newspaper, Apple talked to four leading European mobile operators: Deutsche Telekom's T-Mobile, France Telecom's Orange, Telefónica's O2 and Vodafone. Apple plans to limit the iPhone's European launch this fall to the U.K., France and Germany. It will follow elsewhere in Europe next year, when it will also launch in Asia. European operators had a dilemma in negotiations because of concerns Apple seeks deals that could weigh in favor of Apple.

O2 said: "We have not signed a deal with Apple." Apple said: "We...do not comment on rumors or speculation."

For more about the potential deal between Apple and Telefonica's 02:
- read this article from the Financial Times

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