As Financial Times previously reported, the Apple partner in UK was confirmed today as Spain’s Telefonica owned O2.

“We’re thrilled to be partnering with O2 to offer our revolutionary iPhone to UK customers,” said Steve Jobs, Apple’s CEO during the news conference held in London. “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.”

The 8GB version of the iPhone will be purchased in O2, Carphone Warehouse and Apple stores for 269 pounds (387 euros, 536 dollars) including VAT.

"Price difference with the US is mostly VAT (value added tax), and a little part of it the due to the cost of doing business being higher here," Jobs explained.

Customers will have to sign an 18-month contract with O2, paying 35, 45 or 55 pounds  a month, but they will have unlimited mobile data usage and unlimited use of 7,500 public Wi-Fi wireless Internet connections in cafes, restaurants, airport lounges and other locations across the UK operated by The Cloud.

“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.”

In US, AT&T offers also three service plans for iPhone. The cheapest plan offers 450 anytime minutes along with 5,000 nights and weekend minutes. The second one which costs $79.99 guarantees 900 anytime minutes and unlimited nights and weekends. The top-level $99 plan means 1350 anytime minutes and unlimited nights and weekends

Including a touch-sensitive screen, a built-in iPod media player and a wireless media browser, iPhone appears more than just hype.

However, despite the rumors, Apple will not offer in UK a 3G version of iPhone. In UK iPhone will operate on O2's GPRS (General Packet Radio Service) and EDGE (Enhanced Data rates for GSM Evolution) networks.

Steve Jobs explained that the 3G technology is not yet good enough for the iPhone's batteries. According to Apple, iPhone offers up to 8 hours of talk time, 6 hours of Internet use, 7 hours of video playback or 24 hours of audio playback. The standby estimated by Apple is 250 hours - more than 10 days. "You make a big tradeoff to go to 3G and that is bad battery life", explained Jobs.

But Steve Jobs said that a 3G iPhone could be unveiled as early as next year, together with a better battery.

“Our phone has eight hours of talk time life. That's really important when you start to use the internet and want to use the phone to listen to music. We've got to see the battery lives for 3G get back up into the five-plus hour range. Hopefully we'll see that late next year", Jobs said.

Similar to US launch, the iPhone users in the UK will be able to activate their new phones using Apple’s popular iTunes software running on a PC or Mac computer in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated.  Of course the latest version of iTunes is needed.

In July Apple said that in the first week end at launch it has sold 270,000 iPhones and AT&T revealed that during the same period 146,000 of the phones were activated. So it’s interesting to see how many iPhone Apple will sell in its first week end in UK.

It’s expected that later this week Apple will announce its future partners for Germany and France. According to previous reports Apple will handle the distribution of its iPhone to T-Mobile in Germany and to Orange in France.

Last week Reuters reported that an inside said that T-Mobile has clinched an exclusive deal with Apple to sell the iPhone in Germany. According to Reuters’s report the price of iPhone in Germany will be 399 euros.

Earlier this month, Financial Times Germany revealed that Apple has managed to lure the telecom giants into signing a contract for iPhone’s distribution, according to which the carriers must share their iPhone-generated revenues with the Cupertino, CA-based computer manufacturer.

The deal allegedly stipulates that carriers will provide Apple with 10% of the revenues made from calls and data transfers by customers over iPhones.

But today Steve Jobs refused to detail the revenue-sharing arrangement between Apple and O2, but he confirmed that before signing the deal he spoke with other carriers as well.

“It's kind of like getting married," Jobs joked. "We dated a few people but didn't get married to them. I guess there are a few upset girlfriends out there.”

But according to some media reports O2 agreed approximately 40 percent of revenues for generated by iPhone to Apple.

Also there is little known in US about the conditions in which AT&T has signed its distribution deal with Apple. According to a research note released by Gene Munster, a Piper Jaffray analyst, in July, AT&T gives Apple $3 per month (over the life of the 24 month contract) for every iPhone customer already with AT&T and $11 per month for every new subscriber.

After having launched in US on June, 29, the iPhone sold massively regardless the $599 (£300) cost. However Steve Jobs has announced a reduction in price to $399 (£200) recently. Shortly after Apple announced it has sold one million iPhones. "One million iPhones in 74 days - it took almost two years to achieve this milestone with the iPod," said Steve Jobs at the time.

But the price cut announcement was followed by many negative reactions from early adopters and Apple decided to offer a $100 credit to those who bought the iPhones before August 22. As the company announced lat week the credit can be used only to buy items from Apple's retail stores, its online outlet, or through its telesales and can’t be used for buying content from iTunes or for gift cards.

Apple’s target, as it had even been announced by Steve Jobs in January, is to sell 10 million units by the end of 2008.

But following the price reduction maybe Apple will sell more than expected.  iSuppli Corp., a US research firm, predicted  that it expected Apple to ship 4.5 million of the devices worldwide this year - and between 10 million and 15 million next year.