In yet another "so logical it's gonna happen" rumors-come-true, O2 will no longer enjoy the exclusivity it has enjoyed for two years and Orange UK will begin offering the latest 2 versions of the iPhone "later this year," according to the BBC. O2 will continue selling the iPhone (along with the Palm Pre) and there isn't expected to be much price difference between the two. All of this is occurring while Orange makes plans to merge its network with T-Mobile, which would make it the UK's largest mobile service provider.
Here's to competition -- now if we could get some of that sweet choice in the US of A. If you are an Orange customer or potential Orange customer wanting an iPhone, they have a page for you here.