O2 has confirmed that it will begin selling Apple’s 3G iPhone this Friday, and said it is to offer the device as part of its business handset portfolio for the first time.

Announced last month, the updated iPhone adds key features such as support for 3G wireless networks, a client for Microsoft Exchange email servers, a Cisco-compatible VPN and built-in GPS. These make it suitable even for enterprise customers, according to O2 business sales director Ben Dowd.

“Many customers do not want to go with just one platform, and with push email support, the iPhone can now compete in this space. It’s right there in the mix with BlackBerry and Nokia,” he said.

The iPhone will cost £84.26 for the 8GB model, while the 16GB model costs £135.32, but these prices depend on the tariff. The latest iPhone will be available under the new business rates O2 put in place this year, while enterprise customers are likely to get the handset for free as part of a bespoke package, Dowd added.

“Business customers just need to add an £8.50 bolt-on to get unlimited data and Wi-Fi access,” he said. This Wi-Fi access is provided via The Cloud and BT hotspots across the UK.

Dowd said the iPhone would be useful for field service engineers, who could make good use of the device’s touch input screen, and for mobilising the sales force with CRM applications.

“It’s fantastic for anything that needs web access, and so entirely suitable for web-based applications,” he claimed.

However, Dowd stressed that O2 is not trying to push the iPhone at its business customers, but is simply making it one of the available choices because of the demand it saw for the older 2G iPhone model.

“We have done some beta tests with about 15 corporate customers including Logica, Citigroup and McDonald’s, and they like it. They can see the benefits and are evaluating whether to deploy it,” he said.

O2 is to make the iPhone available through 16 of its top business partners around the UK, said Dowd, who will be able to provide local support to companies choosing the iPhone for business applications.