According to this Dutch-language report, O2 says it does not have an iPhone contract with Apple to distribute the iPhone in
England The United Kingdom of Great Britain and Northern Ireland not including her overseas territories. A spokesman denied signing a contract and would not discuss any ongoing negotiations. This contradicts earlier reports that O2 would provide exclusive iPhone service in the UK. Rumors are flying regarding European iPhone distribution deals but there is still no official word about anything yet over at the Apple PR site.