Vodafone Group said on Thursday it was in a spot of bother regarding the current iPhone mobile phone that the Apple's latest "killer" gadget does not operate on fast 3G networks. Amid speculation that Apple is close to handing a deal to Vodafone's rivals to bring iPhones to Europe, the mobile phone giant said only any deal needed to make sense for shareholders.

Sarin, held a conference after the company posting strong quarterly numbers and has addressed them saying  "It's clearly a good, software-driven device, but we're concerned about wideband area coverage so that 3G (third-generation) or HSDPA (upgraded 3G) connectivity with the iPhone is something that we look forward to.

"Every product, every alterative, every choice here has a price and we just have to be conscious of what it is that we're doing for our customers and our shareholders."

Analysts predicted Vodafone to be in prime position to bag an exclusive, pan-European deal to sell iPhones, which have flown off the shelves in America, but warned that Apple was a tough negotiator and liked to dictate terms.

Apple, whose iPhones operate over slower 2.5 generation networks in the United States, is not expected to bring out a 3G version until March 2008, analysts say. And Vodafone has invested heavily in its 3G network and services.

IPhones, which combine Apple's hugely popular iPod digital music player, a video player and Web browser into a sleek, touch-screen device, went on sale in the United States in June. Sarin further said that almost all the mobile companies are holding discussions with Apple, but, refused to comment on any further potential decision or announcement.

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