The iPhone could well get some unwanted company at O2 as its parent company looks set to grab the exclusive distribution of the Palm Pre in major territories, much to the chagrin of Vodafone which was the firm favourite.
According to Spanish news outlet, Expansion, Telefonica has already agreed with Palm to launch the Palm Pre, a smartphone which has been described by some as the Anti-iPhone, in Latin America, UK and Spain.
An O2 spokesperson told Techradar that "Our device strategy operates on the principle that the proposition has to be right and it has to add value for the customer. As part of that, we go for the best in class of any category of handset. We have made no announcement on this particular handset"
The win for Palm would be exceptional since it would be the first phone from the US company to reach UK shores for some time. Vodafone has been selling the Palm Treo Pro for some time but, squeezed between the RIM Blackberry and Nokia's E Series, it has had a hard time.
The phone is expected to be launched by summer and could possibly means the end of Palm's love affair with Vodafone. Sprint will be selling a CDMA version of the Palm Pre.
You can follow ITProPortal.com on Twitter @itproportal.
Palm has a race against time. It needs to be swift and act before Apple releases its third version of the iPhone. And it is not the only rival that it needs to take care of. Android is going to be stronger this year. Windows Mobile is undergoing a resurgence and Blackberry could well push Palm out of the corporate market.