In the UK O2 sell iPod Touch cheaper than the Apple Store, as do Amazon and many other places - you can save about £30 off the top model. However, O2 and the Carphone Warehouse have no such discount on the iPhone. Now, Apple fans without price motivations to go elsewhere I think will probably buy from Apple, and others too that want good tech support and advice will likewise choose Apple. Since O2 might not always be the service provider, but Apple will always be the producer of the iPhone. Now might this be the reason that O2 and Carphone Warehouse do not advertise the iPhone prominently online or in their store windows? Or is it pressure from other phone makers disgruntled at the iPhone success that are putting pressure on them not to make such a big deal of the iPhone? Either way I see no reason for Apple to keep up the exclusive deals with these providers now the iPhone concept has been proved. I'd be over the moon at a Virgin PAYG contract for the iPhone.