O2 has beaten its rivals to win the exclusive UK rights to offer Apple?s iPhone. The tie-up, the mobile phone industry?s most sought-after deal in years, marks a major coup for the 18 million-customer group. The final contract is expected to be signed imminently. The deal will come as a bitter disappointment to Vodafone, which had been tipped as the front-runner for the deal.

The phone, is expected to be on sale in time for Christmas at retail price about £300 in a market, where phones are traditionally given away.

Rival handset manufacturers are busy preparing ?iPhone killers? for Vodafone and the other losing operators. O2 and Vodafone both declined to comment.

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