O2 UK CEO Matthew Key has been rewarded for winning the iPhone deal by being handed the CEO role for all of Telefonica (NYSE: TEF) O2 Europe (via The Telegraph). The 44-year-old, who came to O2 in 2002 to become its chief financial officer and became its head of mobile two years ago, is also credited with helping turn O2 UK around, reflected in the boost of both its revenues and subscribers. But Key has his work cut out for him - the UK business has been good to Telefonica, but its German division has seen revenues from voice and data services decline in the face of keen competition from rivals Vodafone (NYSE: VOD) and Deutsche Telekom. O2 Germany is still struggling to integrate a fixed-line business inherited from Telefonica. Key takes over from Peter Erskine, who was instrumental in the creation of O2 in 2001. He oversaw its European expansion and its sale to Telefonica in 2005 for £17.7 billion ($36.8 billion) and will remain on the board of Telefónica. The Spanish network will announce a new UK chief executive “in the coming weeks”.