Apple chief Steve Jobs told a London press conference that O2, owned by Spain's Telefonica, had scooped a lucrative contract to distribute the iPhone in Britain from November 9.
The iPhone, which combines Internet, telephone, and iPod-like music-and-video play, will cost 269 pounds ($536) to buy in Britain.
"We talked with the main operators, here, but we think we have chosen the best and the most-popular one," Jobs said of O2 to reporters gathered at the Apple Store in Regent Street, one of central London's most plush shopping areas.
"It wasn't an economic choice, but a cultural choice; we think they're doing a great job."
No financial details regarding the tie-up were disclosed.
The much-hyped iPhone had its worldwide launch in the United States in late June, ahead of its hotly-anticipated European launch, the precise details of which had been shrouded in mystery until Tuesday's announcement.
On Tuesday, Jobs declined to comment on when the eight-gigabyte iPhone would be introduced in other parts of Europe.
"We said we planned to be in other places in Europe in Q4 [the fourth quarter of 2007], and we still plan to be," Jobs said, adding: "Today it's about [the] UK; that's all we have to say, today."
O2 chief executive Matthew Key said the iPhone would work only on his company's telephone network.
The gadget would be available for purchase at British mobile phone retailer Carphone Warehouse, as well as Apple and O2 shops, he added.
"The minute I used it, I knew it was a breakthrough product," Key told reporters.
"We're about bringing great customer experiences," he added.
Apple has won strong reviews for the much-hyped iPhone, but the group has declined to say when the product will be launched elsewhere.
The iPhone's British price tag of £269, compares with the current price of $399 in the United States.
"We try to be as aggressive as we can," Jobs said in reference to the British retail price.
"Price difference with the US is mostly VAT [value added tax], and a little part of it is due to the cost of doing business being higher here," he added.
Technology titan Apple was recently forced to apologize to its American customers who had bought the phone at the US launch, after slashing the price of the device by $200, just a few months after it first appeared in shops.
Apple also offered a $100 credit to US customers who had bought the device at the launch price of $599.
Analysts said the surprise move to slash the initial price tag could give the California-based company "a lock" on the market for smartphones.
The group sold its millionth iPhone just 74 days after the device hit the shops in the United States June 29, according to Apple.
O2 was bought by Telefonica in 2005 for £17.7 billion. The British telecoms group currently has about 17.8 million customers in Britain.
© 2007 Agence France-Presse