Telefonica connects with Palm’s rival to the iPhone

TELEFONICA’S O2 and Movistar said yesterday that they have won an exclusive deal to sell Palm’s new Pre smartphone – regarded as the closest rival to Apple’s iPhone – in the UK, Ireland, Germany and Spain.

Palm said that O2 would have initial exclusivity in the UK, Ireland and Germany, while Movistar would have an exclusive deal in Spain. It did not specify when other operators might be allowed to sell the Pre.

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.

Movistar is also the exclusive seller of the iPhone in Spain, meaning that Germany – where T-Mobile sells the iPhone – will be the only European country where the iPhone and Palm are sold by different operators.

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.

The Pre went on sale in the US last month, initially with operator Sprint, and Palm said it had broken Sprint’s previous first-weekend sales records in its first weekend of availability.