Telefonica connects with Palm's rival to the iPhone

<div>TELEFONICA&rsquo;S&nbsp;O2 and Movistar said yesterday that they have won an exclusive deal to sell Palm&rsquo;s new Pre smartphone &ndash; regarded as the closest rival to Apple&rsquo;s iPhone &ndash; in the UK, Ireland, Germany and Spain.<br /><br />Palm said that O2 would have initial exclusivity in the UK, Ireland and Germany, while Movistar&nbsp;would have an exclusive deal in Spain. It did not specify when other operators might be allowed to sell the Pre.<br /><br />O2 already has exclusive UK and Irish rights to the iPhone including the newly available 3GS version, giving it an edge over rivals Vodafone, Orange, T-Mobile and 3.<br /><br />Movistar is also the exclusive seller of the iPhone in Spain, meaning that Germany &ndash; where T-Mobile sells the iPhone &ndash; will be the only European country where the iPhone and Palm are sold by different operators.<br /><br />Palm said the Pre would be available in the specified European countries in time for the Christmas holidays in December. It did not announce pricing.<br /><br />The Pre went on sale in the US last month, initially with operator Sprint, and Palm said it had broken Sprint&rsquo;s previous first-weekend sales records in its first weekend of availability.</div>