Vodafone also gets the iPhone in UK

Vodafone will join Orange and O2 in selling the iPhone in the UK, paving the way for intense competition between the UK’s three largest operators. Vodafone’s announcement follows news earlier this week that Apple is breaking its exclusive contract with O2 to offer the phone with Orange. The events show that Apple is moving away from its practice of working with just one operator in each territory, and may soon offer the handset to more major operators in other countries. 

Orange CEO Thomas Alexander has told staff that the iPhone will be available on his network in time for Christmas, however Vodafone will not sell the handset until early next year. Once Vodafone does release the phone, analysts expect a price war between O2, Orange and Vodafone to push down prices for the device. Vodafone CEO Vittorio Colao has said that not having the iPhone is one of the key reasons the UK-based operator lost almost 160,000 customers last year, while Orange’s Alexander says it is has been one of his top priorities to gain the device since taking over in 2007. 

It may not be long before all the UK’s mobile operators are able to offer the iPhone. T-Mobile is set to merge with Orange and many commentators expect Hutchison’s fifth-placed 3 network to merge with another operator or exit the market altogether.

The UK is the latest territory where Apple has extended its range of mobile operator partners, a process that began with a deal in May 2008 allowing Vodafone to offer the handset in a number of markets where it was already available from other providers. In many cases, Apple’s decision to open up the iPhone to other networks has provoked outcry from its existing partners. In February, Apple broke an exclusive deal with Orange in France by letting competitor SFR also carry the iPhone in the country. At the time, Orange insisted it would challenge the decision in court. 

The availability of the iPhone on the three leading UK operators heightens speculation that Apple is preparing to end its exclusive deal with AT&T in the US. The largest US operator, Verizon, is thought to be hoping to wrest the device from its nearest competitor, and its recent decision to turn down Palm’s Pre suggests it may be hopeful of coming to an arrangement with Apple soon.