Things were in chaos this morning when the iPhone 3G launched in the UK according to Mobile News. The problem occurred shortly after O2 and Carphone Warehouse stores opened and the Gateway connection process O2 uses failed.

The failure meant that workers had to call customer service manually to activate the phones causing delays. One staffer said: "It has been chaos; of all the days it could happen, today is the worst."

O2 is said to be using a manual backup that allows employees to manually enter new customer info and then send it in when the gateway system is back up and running. The potential problem with it is that it allows the devices to leave before the credit check is complete.

Via Mobile News