LONDON — Apple has confirmed that Telefonica subsidiary O2 will handle the iPhone in the U.K. The handsets are scheduled to go on sale November 9 and will also be available from high street retailer Carphone Warehouse as well as Apple's own stores.

However, in a blow to customers who hoped Steve Jobs, Apple CEO, may pull something out of the hat at the London launch Tuesday (Sept. 18), there was no sign of a 3G version of the device. I

Instead, O2 will rely on its Edge network, which still does not have anything like full coverage across the U.K, as well as deal struck with Wi-Fi hotspot operator The Cloud, who will provide free wireless LAN access to iPhone users at its 7,500 hotspots.

Asked why there was not a 3G version for Europe, Jobs said: "The chipsets work well apart from power. They're real power hogs. Most phones now have battery lives of 2-3 hours and that's due to these very power-hungry 3G chipsets. Our phone has 8 hours of talktime life.

"That's really important when you start to use the internet and want to use the phone to listen to music. We've got to see the battery lives for 3G get back up into the 5 plus hour range. Hopefully we'll see that late next year. Rather than cut the battery life, we've included Wi-Fi and sandwiched 3G between Edge and a more efficient Wi-Fi."

So that is confirmation Apple is working on a higher data rate version, which should be available late next year.

The phone at launch will be available only in an 8GB version, and come with three tariff options, including one that offers unlimited data.

And it is set to become the U.K's first £1,000 mobile phone. The basic handset will cost £269 — £69 more than in the US, and that is after the recent $100 discount — - but Britons will also need to sign up to a contract costing at least £35 per month, and for a minimum of 18 months.

That puts the cost of the handset and contract at between £899 and £1,259, depending on the call plan.

Jobs did not comment on the revenue sharing deal struck with O2 but some analysts suggest Apple could get as 40 percent of the revenues.

Throughout discussions over marketing the iPhone in Europe, Apple has played off the UK's four main networks - O2, Orange, T-Mobile and Vodafone - against each other. All of them, at one stage, believed they had an exclusive deal for the British market.

Announcements are planned for the French and German launch later this week, with T-Mobile widely expected to get the nod in Germany and Orange in France.