Now that's something that could get some early adopters to pinch their lower lips and potential iPhone buyers to consider moving to O2.
The Times is reporting that the next generation iPhone could be on sale in the UK as soon as next month for £100 only and 99 Euros on Mainland Europe (ed: why discriminate us?)
The next generation phone, which is widely expected to sport 3G wireless broadband connectivity, will almost certainly be unveiled next Monday by Steve Jobs at Apple's Worldwide Conference in San Francisco.
Insiders have told the Times Online that unlike the original iPhone, the updated 3G iphone will be available within weeks of its US launch, at a knock down price.
It is also quite likely that Apple will operate a three pronged approach similar to its iPod family by having three different iPhones on offer; it will also be interesting to see whether the iPhone encroaches on iPod sales.
O2 has an exclusive deal with O2 to distribute the phone in the UK and gives back to Apple a chunk of user revenues. It is also understood that the Telefonica-owned company will be subsidising the price of the iPhones, in line with the rest of the industry.
However, newer territorial deals seem to do away with these exclusivity deals, a road that Apple is reluctantly taking, motivated mainly by the fact that it needs to sell more iPhone to reach its 10-million iPhones sold by the end of the year.