Orange Confirms iPhone Launch

France Telecom’s (FTE - Analyst Report) subsidiary Orange UK has revealed the iPhone launch date as the carrier will officially unveil the iconic handset in the UK on Nov. 10, 2009. Moreover, the operator has also released pricing and tariff details for iPhone 3G and iPhone 3GS, which will be sold through direct retail distribution channels including on-line stores, shops and telesales channels.

Orange will sell the iPhone to consumer and business customers through various price plans such as "pay as you go" (PAYG) and "pay monthly" basis. Under the PAYG plan, customers who top up £50 ($82) at purchase will get the iPhone 3G for £343 ($563), iPhone 3GS (16GB) for £440 ($722) and iPhone 3GS (32GB) for £539 ($884), along with 250MB of data usage per month and unlimited Wi-Fi (wireless broadband) access for a year.

Under the "pay monthly" option, iPhone 8GB, 16GB and 32GB models will be sold under a range of monthly plans. With a two-year service contract, iPhone 3GS (16GB) will be offered free on all £45 ($74) monthly tariff plans while iPhone 3G is free on £30 ($49) plans. 

Orange sealed the marketing rights to Apple’s (AAPL - Analyst Report) iPhones on Sept. 2009, which effectively ended Telefonica (TEF - Analyst Report) O2 UK’s two-year exclusive distribution rights to sell the device in the UK. However, O2 UK, which has been offering the iPhone since Nov. 2007 and has amassed more than 1 million customers, will continue selling the handset in the UK. Moreover, Vodafone (VOD - Analyst Report) is expected to market iPhones in the UK in early 2010.
 
Orange UK is currently the third-largest operator in the British mobile market with 21.5% share. However, the company remains challenged by the cut-throat price competition as its bigger rivals such as O2 UK and Vodafone continue to boost their respective market shares through aggressive product/price offerings.

To strengthen its foothold in the UK wireless market, Orange UK is merging with Deutsche Telekom’s (DT - Analyst Report) subsidiary T-Mobile UK (the fourth-largest mobile carrier in the UK) under a 50-50 joint venture. The combined entity would dethrone O2 UK as the largest wireless operator in the UK, with roughly 37% market share.

iPhone represents a significant opportunity for Orange UK to further bolster its presence in the UK mobile market by attracting new high-end subscribers. The company will leverage its market leading 3G network to roll out the popular handset, addressing a significant portion of the UK’s cellular user base.