• TechCrunch, Tuesday, September 18, 2007 10:45 AM

Apple has chosen O2 as the wireless service provider for the UK version of its iPhone mobile handset device. The decision, announced by CEO Steve Jobs in London on Tuesday, wasn't altogether unexpected, nor were the accompanying features, save for the "rather clever" partnership struck with European Wi-Fi network The Cloud, giving UK iPhone users access to some 7,500 Wi-Fi hotspots.

The handset will retail for £269 ($540) on November 9, or $140 more than it currently costs in the U.S.; buyers will be required to sign an 18-month contract at anywhere between £35 ($70) or £55 ($110) per month, which includes unlimited usage of The Cloud's Wi-Fi network. To aid distribution, Apple struck a partnership with Carphone Warehouse, an independent retailer, which gives the consumer electronics giant 90% coverage of the UK and 1300 total distribution outlets.

Once again, Jobs chose not to sell a 3G version of the iPhone because "the trade off with 3G [in battery life] is too bad right now," he said. The device will use the slower Edge (often unofficially recognized as 2.75G) technology to run over O2's network. The Spanish Telefonica company has 5.5 million customers in the UK; the company's internal research says that 80% of "high-value customers" want an iPhone while 40% of other network customers said they would switch to O2 to get an iPhone.

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