European technophiles are about to get their fingers on the iPhone’s touchpad, and thanks to some 11th-hour bargaining, O2, the UK’s largest mobile operator, will have the franchise there. But O2’s deal is “madly money-losing,” a competitor tells the Guardian, because Apple reaps as much as 40% of O2's revenues from use of the gadget.
Wireless giants Orange and T-Mobile, holders of the French and German rights, both held out hope for part of the UK market after Vodaphone dropped out of the competition—until O2 swooped in. “If sharing revenue brings a bigger pie to the table, then we’ll be happy to share that pie,” O2's CEO told the Times of London. (More iPhone stories.)