Later today (Tuesday) Apple will hold a press conference to unveil its upcoming iPhone 3.0 operating system and a new SDK ,or software developer kit, for the phone that is aimed at helping engineers and third parties write applications for the device.
Naturally enough, speculation on the blogosphere is rife about what will be on offer. Apple notoriously stays mum on what will be coming out but here is a selection of what some people are taking guesses on what might be included and what they would like to see.
Kevin Rose, the founder of Digg, says he expects a cut and copy and paste function. A feature that has arguably been one of the most requested.
Macworld is looking for quite a few improvements to the iPhone so I will just note a couple of them. The blog wants a new improved mail programme with a single unified inbox. Great for those with more than one e-mail account. It also wants to be able to synch notes and to-do applications and would like to see better app organisation.
The site says back in the day "when the iPhone had only 20 apps - all from Apple - its one-panel home screen was a simple and easy-to-use way to launch those apps." No more of course because there are more than 15,000 to choose from and most people have a host of apps that end up running over several pages.
Macworld suggests being able to group apps into useful categories like games on one screen, productivity apps on another and so on. Another way would be to manage apps from within iTunes.
Engadget.com says it thinks a copy and paste function is "weak" and is calling on readers to vote for what should come in the update.
The list includes proper Bluetooth support, video recording, Flash, or "ridiculous proprietary headphones." A jibe obviously at the fact that the headphones that come with the new iPod shuffle have a proprietary control chip that wannabe headphone makers would have to pay to use so their product will work with the shuffle.
CNET thinks the announcement will include being able to tether the iPhone 3G so it can be used as a wireless modem for a laptop even though it hasn't had a rush of readers asking for it.
It lists a series of capabilities that many other smartphones and cell phones have that the iPhone lacks and should include like video recording, more camera options, voice dialing, speed dialing, text forwarding, and multi media messaging.
It almost makes you wonder why the iPhone is such a megastar in the smartphone category without all this built in.
PCWorld.com thinks "push notification" is on the cards. That's where apps get information from Apple servers even when they are not running. It is also looking for a horizontal keyboard as a standard function rather than users having to pay for it via an application from the AppStore.
While the invitation I got only refers to giving us a "sneak peak" at the new software and the SDK, it's unlikely there will be any mention of new hardware. However using my finely honed Sherlock Holmes skills, I would deduce that if Apple provides a date for the new OS then it's an obvious leap to make that a new iPhone would follow shortly thereafter. The big betting is on June or July.
As always there is plenty of hype and speculation around the Tuesday press announcement and a flurry of gossip that Apple will also talk about a 10-inch tablet computer.
Seth Weintraub of Computerworld is not alone in raising the flag on this one, but perhaps he goes a bit further than most. He notes that Apple is "developing a touchscreen in the 9.5-10 inch area for release in Q3."
His reasoning is that while Apple won't compete directly with the Netbook market, it will try to release a similar type product. Mr Weintraub says if Apple is aiming for a summer release it needs to start talking about such a device now so that developers can get to work to make their apps function on this smaller device.
MG Siegler at VentureBeat is of the same mind on this and writes "given that this is an "advance preview" of the new OS, it seems Apple wants to give developers some time to prepare for some big changes."
As always with Apple product announcements, lots of unanswered questions ahead of the launch. Take thanks in knowing that this time tomorrow the fuss will all be over.

So, after plenty of rumours, and even more leaks, the "free" internet calls service Skype will finally come to Apple's iPhone on Tuesday. Is this the moment that Voip - to use the ugly jargon - finally makes the leap from the laptop to the mobile? After a quick play with the new application, I must say I'm sceptical.
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It works fine - just install the app, tap on the icon and Skype launches with the familiar start-up sound you get on your computer. Your contacts list then tells you who is online - and you can either send them an instant message or make a call. When I tried it, the sound quality was about the same as on any mobile call - and as it was to a Skype contact it was free.
But here's the catch - I could only make the call because I was on a wi-fi network. Apple's restrictions on the use of its software development kit mean that Voip applications cannot use the 3G network. The other issue is that the iPhone doesn't allow you to have more than one application open at the same time - so your Skype buddies probably won't be able to get you on the phone unless you happen to be in the app when they call.
Most iPhone users will be on a contract giving them a lot of call minutes - so it's unlikely they'd want to use Skype unless they were abroad - or calling abroad. And wi-fi, as we know, is a lot less widespread and efficient than we might have thought it would be by now - whereas fast mobile networks are now widely available.
You can already use Skype on a dedicated phone from the 3 network, and Nokia is building the application into its N series of phones. In both cases you can make free calls to other Skype users over 3G as well as via wi-fi - so why would you choose an iPhone for its Skype capabilities?
What might make it into a killer app is free video calls - which aren't available on any mobile right now. but for that to happen on an iPhone, it would need a new camera on the front of the phone.
Skype is obviously very happy to be on the iPhone. But unless Apple takes a radically different approach to integrating the free calls service into its phone, it's unlikley to make a huge impact. And like many businesses, Apple is probably wondering whether "free" is such a great idea anyway.

Ever since Apple changed mobiles forever with the launch of its iPhone, the rest of the industry has been playing catch up.
Now, one of its biggest rivals in the market, Nokia, claims to have done just that.
Released on 23 January, its 5800 XpressMusic is the company's first touch screen phone.
Costing almost £100 less than the iPhone, it could start a price war.
But at £250 it's still not cheap and the big question is - is it good enough to take on Apple?
Newsbeat listeners Sophie Reed and Nik Williams got a sneak preview and gave us their thoughts.
Screen size
Sophie's first impression wasn't good but it did improve.
She said: "When I got the phone I thought it was quite hard to use - the screen is smaller than the iPhone - but I've had it a couple of weeks now and I've gotten used to it.

Sophie thinks the screen on the 5800 could be bigger
"You can view pictures, go on the internet and connect to any wi-fi that's available."
The 5800 has got 8G of memory, meaning it can hold around 6000 songs.
And Sophie reckons that's one of its best features.
"I think it's really good as a music player. I just got loads of songs from my computer, put them all on there and the quality when you play it out, either through headphones or its speakers, is really good," she said.
Pointer pen
Style wise the 5800 is slightly thicker than its rival and has a smaller screen - 3.2 inches compared to 3.5 for the iPhone.
She said: "It's a bit chunky but because it's got a big screen it looks quite good. But I think the iPhone looks cooler really because it's thinner and looks more modern."
Although it uses similar touch technology to the iPhone, the 5800 comes with a plastic pointer pen that makes it easier to use than just with fingers.
But Nik reckons the pen takes away from the whole point of having a touch-sensitive screen.
He said: "It just seemed so fiddly to use with your fingers.
"You either missed what you were trying to hit or ended up touching the wrong part of the screen or internet link and ending up not getting to where you wanted to be."
So overall?
Sophie said: "It's a good phone, and cheaper than the iPhone. But I don't think it's as good because the iPhone has a bigger screen and seems to have more to it."
Nik said: "It's got some pretty cool features but ultimately, for me, Apple has just set the bar so high with the iPhone that the 800 XpressMusic doesn't come close."

In San Francisco on Monday, Apple unveiled what it calls the "fastest, most powerful iPhone yet" - the 3GS. So how does it compare to previous versions?

The iPhone 3GS has voice control and a built-in compass
Some critics say the new incarnation isn't anything that wasn't expected.
They argue that for many iPhone users, the new model may simply do things they expected the original one to be capable of.
It has more speed, more storage, better battery life and a better camera that can record video.
The new model will also be able to send picture messages, allow copy and pasting of text and a full search capability.
Apple is promising the new model will be up to two times faster than the iPhone 3G, and users will be able to take higher resolution photos and capture video using the new 3 megapixel camera.
Video function

Critics say the 3GS only does what was expected of the original
But once Apple's marketing boss Phil Schiller had got round to announcing the new iPhone's built-in compass, the audience in California had realised this was not a day that would change the mobile phone market very much.
For many users, the decision whether to buy an iPhone 3GS will come down to its price, regardless of how many new features it has.
Apple has not yet given details of how much the handset will cost in the UK.
In the US it is priced at $199 (£125) for the 16GB model, $299 (£187) for 32GB.
Other tweaks which set the iPhone 3GS apart from previous models include up to 32GB of storage, but that's only the same as the biggest iPod Touch.
Apple said it has sold more than 40m iPhones and iPod Touch devices, but the company is facing competition.
Palm will soon be releasing the new Pre phone in the UK, launched on the 02 network.
Whilst it has not generated as much hype as the iPhone, it has proved popular in the US and is seen as a big rival to Apple's product.
The new iPhone 3GS will be available in the UK from 19 June.

After months of speculation the Apple iPhone is coming to the island...
We get e-mails fairly regularly from people asking whether they can get things in Jersey. From DAB radio and Freeview to WiFi and the iPhone.
The answer to the first two is no, the third is yes and the fourth used to be no.
The problem was that Apple ties the iPhone to a single network in each location it’s sold and until now that hasn’t included Jersey.
In the UK the iPhone is only available on the O2 network and in France the phone is sold by Orange.
Some people in Jersey do already have an iPhone, purchased unlocked in the UK or France and then had a Jersey sim card put into it – but this does mean a number of network tied features aren’t available.
You will now be able to buy the 3G version of the iPhone in Jersey through the Jersey Telecom or Sure network.
Both operators have purchases the phones through a European operator to sell unlocked in the island.
We've been told that the phone should be available to buy within the next few weeks.
If you want it on the Jersey Telecom network you will need to pre-register your interest, whereas Sure are offering it on a first come first serve basis.
Airtel-Vodafone have confirmed that they will also be offering the iPhone.
However, Airtel's Matthew Morrell told BBC Jersey that the company is working with Apple, local Apple retailer IQ and Airtel's parent company, Bharti Telecom, to bring the full iPhone service, complete with Visual Voicemail, to the island as quickly as possible.
We don't have the exact details of the Sure or Jersey Telecom plans or price points yet but will bring you details when we get confirmation.

In less than three months, world leaders will meet in Copenhagen to try to reach an agreement on tackling climate change.
Environmental scientists say only a far-reaching deal to significantly reduce greenhouse gas emissions will prevent major environmental degradation, in the form of melting polar ice caps, rising sea levels, and extreme weather events such as droughts and floods.
But in many parts of the world, the effects of global warming are already very apparent, and they are forcing local communities to adapt, often at great expense.
The Alps, climatologists agree, are especially sensitive to global warming. Alpine glaciers have retreated faster in the last 20 years, losing around 25% of their surface area.
Now the Swiss region of the Jungfrau, which is classed as a Unesco Heritage Site, is hoping to show the world exactly what global warming looks like, in the form of a graphic interactive guide along its hiking trails.
Graphic guide
The guide has been developed by the University of Berne's Institute for Climate Change, and uses the latest in modern technology - an iPhone complete with GPS.

Taking the iPhones, which are available from local tourist offices, along any one of seven Climate Change Hiking Trails, allows hikers to compare, for example, pictures of the glaciers 100 years ago with their condition now.
They can also see interviews with climatologists explaining how glaciers normally advance and retreat, and the devices can be used to identify rare alpine flowers, many of which are now growing in areas once covered by ice.
"We wanted to show people that climate change is already happening," said Kaspar Meuli of the Climate Change Institute.
"You can see the consequences already, it's happening now and here. We want to make people feel more concerned about this whole problem."
Crumbling mountains
Walking with Mr Meuli up the trail towards the lower Grindelwald glacier provided a stark illustration of the problem.

"This area is of particular interest because there are many natural hazards due to climate change that can be witnessed here," he explained.
And sure enough, just as the climate guide instructs hikers to stop and examine a particular rock formation, the rock begins to crumble, and boulders roll down the mountainside.
The rock slide is the result of thawing permafrost, which once held the rock in place.
"This kind of thing is happening basically all the time now," said Mr Meuli.
"Just two kilometres from here they had to build a special tunnel to protect the path from rock falls."
Disappearing restaurants
Closer to the glacier, or rather, closer to where the glacier used to be, there is another graphic example.


A brand new mountain restaurant welcomes hikers, but just a few hundred metres on, visitors can see where the old restaurant stood until three years ago.
Now the spot is a collapsed wall of earth and rock. As the glacier retreated, the ice stopped supporting the earth beneath the restaurant, the ground crumbled away, and the restaurant fell.
Such examples are not only stark evidence of the fact that global warming is already damaging the planet, they are also forcing local communities into costly and complicated protection measures.
A particular danger caused by the melting glaciers is the excess water.
As the lower Grindelwald glacier melts, the levels of the glacial lake are rising, threatening to flood the villages in the valley hundreds of metres below.
Now the local community is spending almost $15m (£9.4) to build a complicated series of run-off tunnels, drilling through the mountain and up to the lake, in a bid to give the water a safe route down.
"This is a good example of the consequences of global warming," explained tunnel engineer Nils Haehlen.
"With the melting of the glacier this lake becomes bigger and bigger and so does the danger. So we are building these tunnels to try to lower the level of the lake."
New foundations
Right across the Alps, similar measures are under way.
Many cable car stations are built into permafrost; now that the permafrost is thawing, the stations have to have new foundations.

It's not the kind of information you would expect tourist boards to want to spread around too much - after all, the Alpine economy depends on tourists enjoying themselves, not worrying about rock falls or floods.
Nevertheless Sammy Salm, of the Jungfrau tourist office, believes the new interactive climate guide is a way to show visitors the reality of what's happening to the mountains.
"First of all it's a cool tool, and our visitors like it," he said.
But more importantly, he pointed out, it is a way to confront the public with the consequences of climate change, and perhaps spur them to action.
"Up here you can really see what climate change does to nature, what it does to our mountains," he explained.
"I think with this we can really raise the awareness of each individual person about what's actually happening, and then also maybe make them more sensitive to their own daily behaviour about how they use resources."

A university is offering a free iPhone application it has developed to help students starting their first term.
The University of Central Lancashire in Preston says the mobile phone service will provide maps and details of entertainment and local transport.
There will also be details of campus facilities and access to students' university e-mail accounts.
Director of learning, Michael Ahern, say this will help connect with students who "lead very busy lives".
He believes this is the first such iPhone application for a university in the UK.
Keeping track
"At the beginning of term you're always being stopped by students asking for directions, now they're going to have the information they need in their pockets," says Mr Ahern.
"As they roam around the campus they can get information about lecture theatres, places to eat and libraries," he says.
The mobile phone service links to an alternative student guide, written by fellow students, and can also access student union services, such as letting students book tickets for bands.
Students are increasingly likely to be studying part-time - or to have term-time jobs - and Mr Ahern says that a mobile phone is a convenient way for the university to keep in touch with busy people in many different locations.
"It's a different track for reaching students," says Mr Ahern.
But he says that there is a question about the lack of access for students who do not have iPhones - and although not wrapped into a single package, the same information can be accessed through laptops and other mobiles which can access the internet.
The university has just invested a £1m in laptops and online access for students who cannot afford their own computers, he says.
The iPhone "applications" are customised information services which can be downloaded onto this type of mobile phone.
It has been estimated that there will be 100,000 applications available by the end of the year, with 1.8 billion having been downloaded so far.

Vodafone has reached an agreement to sell Apple's popular iPhone in the UK.
The announcement follows news that network operator Orange had secured a similar agreement with Apple.
The deals mark an end to the exclusive UK arrangement between O2 and the US technology firm, which has been in place since 2007.
Vodafone says users can register an interest online, with the handsets becoming available to customers from early 2010.
Orange said its customers would be able to buy the phone "later this year" but did not specify a date or pricing.
Vodafone is one of the biggest mobile operators in the world with an estimated 300 million customers world wide, making it the second largest carrier after China Mobile.
The agreement sees both Orange and Vodafone selling both the iPhone 3G and iPhone 3GS.
A spokesperson for Vodafone said the firm was "delighted" at securing an agreement with Apple and that the phone was going to be primarily for existing Vodafone customers.
This is a different model from that adopted by O2, which used the iPhone as an incentive to attract new customers.
Exclusivity
O2 has offered the handset in the UK since its launch in 2007. In February, it said it had sold more than one million of the handsets.
The launch of the latest iPhone 3GS in June significantly boosted sales, with many stores running out of stock.
The phone has also allowed the firm to win subscribers from other networks, according to analysts.
Dave McQueen, principal analyst at Informa Telecoms and Media told BBC News said that the smartphones - which have the ability to surf the web and send e-mail - has put a burden on the O2 network.
"IPhone users to tend to use data quite extensively - perhaps more than anticipated," he said.
O2 will continue to sell the handset in Britain, alongside iPhone rival the Palm Pre.
The Palm phone, described by some as an "iPhone killer", will be available exclusively to O2 from 16 October.
O2 said that it always knew that its exclusive deal was for "a limited period of time".
In countries where exclusive deals still persist, such as the US, some customers choose to "unlock" their phones using third party software so they work on an unlicensed network.
However, Apple has warned that the practice can cause "irreparable" damage to a handset and has engaged in a game of cat-and-mouse, releasing periodic software updates which prevent unlocked phones from working correctly.

Apple has shrugged off the recession with profits surging on demand for its iPhones, laptops and desktop computers.
The technology giant made a net profit of $1.67bn (£1bn) in the three months to 26 September, up 47% on a year earlier. Sales rose 25% to $9.87bn.
Computer sales grew 17%, and iPhone sales climbed 7%, though there was an 8% drop in the number of iPods sold.
The results come ahead of rival Microsoft launching its new Windows 7 operating system later this week.
Shares in California-based Apple closed at $189.86 on the Nasdaq index, but rose to above $200 in extended trading on the results, which were well ahead of what analysts had forecast.
Premium products
Apple Chief Executive Steve Jobs said he was "thrilled" at selling more Macintosh computers and iPhones than in any previous quarter.
The company sold 3.1 million Macs, a 19% rise from the same period a year ago.
Analysts said that Apple's unveiling of a faster iPhone in June, and cutting the price of the previous version of the phone had helped it boost iPhone sales to 7.4 million devices, half a million more than last year.
The launch of Apple's latest operating system, Snow Leopard, had also driven sales of new computers, said Dan Akerman, senior editor at CNET.com.
"They concentrate at higher-end premium products at a higher margin so they're aiming at the premium consumer."
Meanwhile, Jane Snorek, analyst at First American Funds described the results as "huge numbers" and that they bode well for sales in the next couple of months.
"This makes me think Apple will have a great Christmas."

Nokia, the world's biggest mobile phone maker, has said that it is suing its US rival Apple for infringing patents on mobile phone technology for the iPhone.
Nokia said it had not been compensated for its technology, and accused Apple of "trying to get a free ride on the back of Nokia's innovation".
The 10 alleged patent infringements involve wireless data, speech coding, security and encryption.
Apple, which did not comment on the news, saw its shares dip slightly.
The breaches applied to all models of the iPhone since its launch in 2007, Nokia added.
'Basic principle'
Finland's Nokia said that it had agreements with about 40 firms - including most mobile phone handset makers - allowing them to use the firm's technology, but that Apple had not signed an agreement.
"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, vice-president of legal and intellectual property at Nokia.
"Apple is also expected to follow this principle."
He added that during the last two decades, Nokia had invested approximately 40bn euros (£36.2bn; $60bn) on research and development.
Earlier this month, Nokia posted its first quarterly loss in a decade amid falling sales.
Analysts said that the poor results had come partly as customers turned from Nokia models to the iPhone and RIM's Blackberry.
Meanwhile, Apple reported profits of $1.67bn (£1bn) in the three months to 26 September - partly due to a 7% growth in iPhone sales.

So a mobile phone network is getting a new phone - or rather a phone that's already been available elsewhere for a couple of years. No big deal, eh? Well, think again. When the news broke this morning that O2 was losing its exclusive contract to sell Apple's iPhone, and that Orange would be selling the phone in the run-up to Christmas, there was huge interest.
It went straight to the top of the list of most-read news stories on our site and social networks were buzzing with the news. Clever old Apple - the whole marketing strategy around the iPhone has been masterful, and now it's scored another winner.
By keeping the phone exclusive to one network since its UK launch in November 2007, it's given it an air of, well, exclusivity. O2 has worked extremely hard to promote the iPhone over the last couple of years - and, it seems, has handed over quite a lot of cash for the privilege. Now, just as the shine is beginning to fade, Apple hands the phone to a network with a huge incentive to give it another massive marketing push.
But here's the key question yet to be answered by either Apple or Orange this morning: what is going to happen to tariffs?

You can't believe that Orange will go into this market charging the same as O2 - and if it does, questions may be asked by the competition authorities. So there's the juicy prospect that an iPhone price war may break out by Christmas - though given the big subsidy operators hand over for a handset like the iPhone, don't expect too much.
Customers will also be glad to have a choice of operators given the strain that the flood of data from the iPhone appears to have put on O2's network. They may find Ofcom's research on mobile broadband coverage in the UK [667 Kb PDF] a useful guide to whether Orange or O2 is stronger in their area.
But what of the operators? This morning, O2 was putting a brave face on things, stressing its pride in its record with the iPhone - but also the fact that the network is about to offer the Palm Pre. As one analyst put it to me, "you knew they were losing the iPhone exclusivity when they unveiled the Pre deal."
Orange is of course punching the air, delighted that months of painful negotiation have ended with it winning the prize. But should the network really be celebrating?
A few months back, a telecoms consulting company which has long been sceptical about the importance of the iPhone and its value to operators released a pretty devastating report. Strand Consult's The Moment of Truth: A Portrait of the iPhone set out to demolish what it said were 10 myths about the "miracle" handset:
"1) The iPhone drives data traffic into mobile operators networks2) The iPhone helps operators attract new customers3) The iPhone is good business for mobile operators4) The iPhone is dominating the mobile services market5) App store is a huge success that has revolutionised the services market6) There is money to be made by developing applications for the iPhone7) It is iPhone customers that are generating the majority of online mobile surfing traffic8) The iPhone has a large market share9) The iPhone was the first mobile phone with a touchscreen10) The iPhone is a technologically advanced mobile phone"
Now I'm not sure that the Strand report's one-sided view of the phone's significance to the industry really bears too much scrutiny. I don't see, for instance, how you can deny that the App Store has been a huge success, and one that has been imitated by the rest of the industry. But one thing does seem true - the iPhone appears to have done far more for Apple, both in financial and marketing terms, than it has delivered for the operators around the world which have fought for the right to sell it.
So today's news is good for consumers and good for Apple - but does it really mean a brighter future for Orange?

Remember the price war that was supposed to break out once O2 lost its exclusive contract to sell the iPhone in Britain?
Well, the price plans that Orange has published for the phone show little sign of an eagerness for hand-to-hand combat.
Apart from an entry-level £30 tariff which promises twice as many minutes as O2's deal, the two firms' offers look virtually identical.
Look at what's likely to be among the most popular tariffs, a 24-month contract for a 16GB iPhone 3GS at £34.26 a month, where you pay £87 for the device.
That's identical in every respect to the O2 deal, except for the cost of the device - which is £87.11.
As we suspected, the high price that Apple extracts from operators leaves them little margin to undercut their rivals - about 11p in fact.
But what does stand out when you examine Orange's price card more closely is what it says about the unlimited data that has been an essential part of the iPhone's appeal.
An asterisk next to the "unlimited" leads to a note saying "Fair Usage policy of 750MB/ month applies." Cue plenty of grumbling from potential customers, particularly on Twitter.
The cap appeared to apply to data downloaded via wi-fi as well as via the 3g network, so some concluded that Orange was planning to curb their customers' use of their own home networks.
I called Orange to check this out - and found the company slightly confused about its own fair usage policy. More than four hours later, the press office finally returned with chapter and verse.
There was a 750MB cap for 3g mobile data, and a separate 750MB for data downloaded with their wi-fi partner BT Openzone - you are free to do what you want on your own network.
So how does this compare with O2? That company came back with its own statement, confirming that its "unlimited" data policy did in fact have its limits.
"We reserve the right... to contact customers about their usage if we believe it adversely affects the service of our other customers, eg if a customer uses their SIM in another device for which it is not intended."
So O2 looks to be a little less restrictive than Orange.
But will many really run up against Orange's limit? At first 750MB may seem an awful lot of data to use on a phone - I reckon I get through about 200MB in a heavy month.
But what we've seen so far is that once you offer people "unlimited" data, they rush to use it, and software developers provide them with new data-rich applications.Streaming audio and video are increasingly popular on the iPhone, and they can chew up your data allowance at an alarming rate.
Last night someone pointed me towards this clause in Orange's Terms and Conditions:
"Not to be used for other activities (eg using your handset as a modem, non-Orange internet based streaming services, voice or video over the internet, instant messaging, peer to peer file sharing, non-Orange internet based video). Should such use be detected notice may be given and Network protection controls applied to all services which Orange does not believe constitutes mobile browsing."
It sounds as though services like Spotify, AudioBoo, Ustream and even Facebook messaging - increasingly popular with O2 iPhone customers - will be out of bounds for Orange users.
The operator is caught between a rock and a hard place. With little room for manoeuvre on prices, it will be hoping that better network coverage will be one factor winning over iPhone customers from O2.
But if too many power users start streaming TV and playing online games on their phones, the Orange network may buckle under the strain - hence the need for a fair usage limit.
Just hours after publishing its price list, Orange appeared to be having second thoughts about that 750MB cap, admitting that plenty of e-mails had been coming in and that it had noticed the rising tide of Twitter comments.
A spokesman told me the cap would be "reviewed" to make sure that it was at the right level.
The problem for the operators is that users no longer see the iPhone and similar devices as phones but as small computers. And who wants to be told 25 days into each month that they must now stop playing around with their computer and just use it to make calls?

IPhone 3G and 3GS handsets will be available to Orange customers from 10 November, marking the end of a two- year exclusive deal with operator O2.
Orange said it would offer the handset to pay as you go, pay monthly and business customers.
Customers taking out 24 month contracts worth £30 or £45 a month will get the 8GB standard handset for free.
The Orange tariffs are very similar to O2. The cheapest 24 month contract is £29.36, compared with £34.26 with O2.
"Since we announced the iPhone on Orange we have already seen more than a quarter of a million customers register their interest on our website," said Tom Alexander, head of Orange UK.
In September, both Orange and Vodafone announced that they would be offering the iPhone. Vodafone said the phone would be available on its network from 2010 but has yet to confirm pricing details.
O2 has offered the iPhone since its UK launch in 2007. By February 2009 over a million handsets had been sold.