So that would not have worked then, would it. I advised him to either find an unlocked phone, copy the SIM content into main memory, then copy it back to the O2 SIM card and from there into the memory of the iPhone, or buy the desktop sync cable for his phone and then try and get the content of the SIM into outlook - all poor solutions vs simply beaming over your contact list, like you can do with most phones with bluetooth.
Would it not be possible to email the contacts file (vcf?) to the iphone, open it & save the contacts?