The UK launch is scheduled to take place on Friday, November 9, with iPhones sold through Apple and O2 stores, as well as through 1,300 Carphone Warehouse locations.

The price for the 8-GB model will be £269 including VAT. Customers can choose to transfer their current mobile phone numbers, whether with O2 or another carrier. An 18-month contract will include unlimited data . According to news reports, Apple will receive 10 percent of usage revenue.

No 3G iPhone for UK

UK and other European consumers might be disappointed to know that the iPhone will not support 3G, but, as in the U.S., will rely on EDGE as well as Wi-Fi. Apple CEO Steve Jobs has said that 3G impacts the device's battery life, and won't be available on the iPhone until at least next year. Wi-Fi networks can be used by the iPhone when available. Otherwise, the device relies on EDGE for data transfers.

"3G would have been a surprise," said Jupiter Research analyst Michael Gartenberg, in that there had "never been any discussion" from Apple about the possibility of 3G for the European launch. For most applications and for most consumers, Gartenberg said, "EDGE or Wi-Fi will be more than sufficient," although he predicted that "we'll see a 3G iPhone at some point."

Even without 3G, the iPhone launch is important enough to O2 that its network will be upgraded to accommodate it. According to the Times Online, O2 will need to upgrade its existing infrastructure to offer 30 percent coverage with EDGE by launch, at a cost "in the millions" of pounds.

O2's willingness to adapt itself to the iPhone stems from the huge publicity that the U.S. launch received, and the fact that Apple has reported a million iPhones sold within the first 74 days.

'Firing on All Cylinders'

Apple is a company that is "firing on all cylinders," Gartenberg said. From its position of strength, he noted, it needed to find a carrier that could help deliver an Apple-branded experience -- not something every carrier is comfortable with. It also needed to supplement its retail outlets because there are relatively few Apple stores in the UK; the deal with Carphone Warehouse does that.

But even with its momentum, Apple is facing challenges for its launch in the UK and the rest of Europe. For example, some observers have noted that customers in the UK are used to having the cost of their phones -- including 3G phones -- heavily subsidized.

In addition, the launch is taking place after hackers have come up with ways to unlock the iPhone and make it usable on other networks. "Unlocking software," noted the Times Online, can free up the iPhone "in five minutes" to work on any network and "can now be bought for as little as £25" or, for those with more technical know-how, done without cost.

These challenges will be front and center in the other two countries expected to be part of the initial European launch. According to news reports, Apple will announce later this week that it has signed exclusive deals with Deutsche Telekom's T-Mobile for Germany and France Telecom's Orange for France.