O2 chief defends iPhone revenue-sharing

British mobile operator O2 defended Apple's insistence on revenue sharing with its iPhone carrier partners, a move many onlookers said lays the groundwork for an official announcement of the much-rumored O2/iPhone deal. In an interview with the Times UK, O2 CEO Peter Erskine said his company supports Apple's demands for a share of revenues derived from calls originated on iPhones. "If sharing revenue brings a bigger pie to the table, then we'll be happy to share that pie," Erskine said. "The revenue-sharing model will play an increasingly important role in the future of converged communications." Erskine also touted the iPhone as an "iconic device with unique features that have proven to have tremendous appeal to large numbers of customers in the U.S."

Apple is expected to name its European carrier partners at a London media event [1] scheduled for Tuesday. The company mailed out invitations to the event early Thursday, each bearing the slogan "Mum is no longer the word." In addition to naming O2 as its U.K. partner, Apple is likely to announce iPhone deals with French carrier Orange and German operator T-Mobile. British operator Vodafone is reported to have pulled out of iPhone negotiations after Apple demanded 10 percent of revenues. There is also speculation the European iPhone will differ from its U.S. counterpart, with possibilities including a 16GB version or a 3G-equipped phone.

For more on the O2/iPhone rumors:
- read this Times Online article [2]

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