We already know that the iPhone won't have any issues functioning on the other side of the pond, but an interesting suggestion from the CEO of Carphone Warehouse has got Europeans looking a bit more closely at how things will eventually be ran in their neck of the woods. It was stated that "in order for the iPhone to function correctly, there is a requirement for Apple servers to be placed deep in the operator's network," which has led some to believe that Apple could have a "a non-GSM, non-standard way of authenticating its phone." If true, this would likely make operators much more willing to subsidize the handset if necessary when competition from rivals inevitably catches up, but it sure won't make users happy who enjoy "unlocking and reflashing phone operating systems to get around operator device tie-ins."

[Thanks, Marc]