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It looks as if it is a done deal with O2 getting the iPhone deal in the UK after selling its soul to grab this deal.  I’ll bet there is more than one O2 exec that is saying their prayers every night.

The Guardian is reporting that O2 will be announced as the winner of that Pyrrhic prize for the UK market on Tuesday; the win is an enormously costly one, though, with as much as 40 percent of plan revenue (yes, revenue, not profit) going straight back to Cupertino. In other words, Apple turned up the heat on the UK carrier scene until everyone — Vodafone, Orange, and T-Mobile — had blinked except for the good chaps at O2. The article also suggests that Carphone Warehouse has been roped in to provide some backup on the retail front …

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