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iPhone 2

News from the popular AppleInsider blog suggests that a new iPhone, referred to previously as the Nano, will open up the market in allowing more networks to offer the phone to customers.

In its current form, the iPhone 3G S is only compatible with GSM and UMTS 3G networks, but the new iPhone would offer compatibility with CDMA networking technology.

This would allow previously excluded networks around the globe to offer the iPhone and would make the iPhone far more versatile for travelling users.

Although the UK has recently seen the ending of the O2 monopoly on the iPhone, larger markets including the US are still hampered by network exclusivity.

This is currently caused by the rigid network compatibility of the 3Gs, but the new phone would solve these issues.

The new 'world mode' iPhone is reported to be around 20 per cent smaller than the full sized handset and some reports suggest that a Taiwanese firm has already been commissioned to produce it.

If the new iPhone proves to be successful, it could allow Apple to further increase its market share, which is already significant at 17 per cent.

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