"We are coming to the UK and wanted to pick the best carrier and that is O2," Apple boss Steve Jobs said at a news conference in London.

The iPhone will cost £269 and customers will not be given any kind of a discount on the handset, following the deal Apple signed with AT&T in the United States.

Monthly service plans on O2 will cost £35, £45 and £55 and include unlimited data. Unlike the plans in the U.S., customers in the UK will also have access to a network of 7,500 Wi-Fi hotspots when they sign up for one of the iPhone plans.

Activating the iPhone in the UK will be conducted via iTunes, as in the U.S.