A report in this mornings FT suggests that O2 is poised to become the network partner for the iPhone in the UK when it launches later this year. Apple is limiting the Eureopan launch of the iPhone initially to the UK, France and Germany, and is believed to have held negotiations with four European operators: O2, T-Mobile, Orange and Vodafone.
While the deal would undoubtedly represent a coup for O2, some industry analysts question the appeal, from an operator perspective, of a device where music tracks can be side-loaded on to the handset from a PC, denying download revenue to the network operator. 
