Live on T-Mobile apparently and only affects (because it isn't an Apple approved application) "jailbroken" iPhones.
Register report here, as found by the good guys at XS4ALL, who did so much great work on the Toxbot botnet.
Now, it would take somebody even more evilly cynical than me to suggest that a meticulous and comprehensive code analysis will show up a Cupertino, CA copyright attribution. :D
Update: BBC News report now up, crediting F-Secure.
A second worm to hit the iPhone has been unearthed by security company F-Secure.
F-Secure, on the other hand, merely claim to have received a sample of the malware and, themselves, credit the nice Mr McIntyre at, guess who, XS4ALL. Well done, BBC, especially for your totally unsubstantiated claim that changing your iPhone wallpaper to a photo of Rick Astley is "harmless". Have you never heard of PTSD?