Free iPhone 3G

Apple will end its two year exclusive deal with O2 this September, allowing other networks like Orange and T-Mobile to distribute iPhone 3G handsets. But the Cupertino-based company will continue to give O2 exclusivity for iPhone 3GS.

The addition of a new network selling the iPhone will break O2’s UK exclusivity on the coveted handset, and will offer a challenge to O2’s prices and tariffs.

Sources said O2 has been furious with the news and is concerned potential rivals will undercut its prices on the older model.

[via Mobile Today]