Everyone and their mother-in-law is reporting that European operator O2, owned by Spanish telecom giant Telefonica, is close to clinching the deal to launch Apple’s iPhone in UK…this comes after reports that Vodafone almost had it, so unless the deal is announced, it is not a deal. Apple is expecting to launch in UK, France and Germany this fall, and follow elsewhere in Europe and in Asia next year. Telegraph reports that negotiations are continuing with mobile phone retailers including Carphone Warehouse over an agreement to sell the iPhone in their stores after a period of exclusivity with O2.

What this means is that iPhone will possibly be on the slower 2.5G network, same as AT&T in U.S., not the 3G as expected by others.

Independent: In other countries, T-Mobile is said to be close in Germany, its home market, while Orange is the likely front-runner in France. Apple had initially looked to sign a distribution deal with a single operator across Europe, putting Vodafone - Europe’s largest carrier - in a strong position, the story says, but has now decided instead to sign separate deals with the largest operator in each European market.