Today in London Apple officially announced O2 as the exclusive carrier for the iPhone in the UK.

The UK will only get the 8GB iPhone and it will sell for 269 pounds sterling (inc VAT) (~$536) starting November 9th.

The iPhone users in the UK will have access to Apple's latest music offerings on iPhone including the recently launched iTunes Wi-Fi Music Store.
The Apple iPhone will sell in Apple's retail and online stores, O2 and The Carphone Warehouse's retail and online stores.

Three new iPhone tariffs will be available from O2 starting at 35 pounds, which all include unlimited anytime, anywhere mobile data usage and, in a market first, free unlimited use of the UK's largest single public Wi-Fi network, covering over 7,500 cafes, restaurants, airport lounges, pubs and other locations across the UK.

We're thrilled to be partnering with O2 to offer our revolutionary iPhone to UK customers," said Steve Jobs, Apple's CEO. "US iPhone customer satisfaction is off the charts, and we can't wait to let UK customers get their hands on it and learn what they think of it."
Via the O2 site.