Apple's iPhone received a passing grade on Thursday from the FCC, clearing the way for its highly anticipated debut next month.

Documents posted on the FCC Web site, show the phone has passed all the applicable tests for compliance with government regulations. In its description of the iPhone, the FCC calls it a "GSM cellular telephone with Bluetooth and Wi-Fi."

As reported at its announcement at the January Macworld keynote, the iPhone will initially be sold in the U.S. by AT&T, formerly Cingular Wireless. Because the phone is based on the GSM communications standard, it is expected to work in countries outside the United States.

Apple has said that it expects to begin selling the iPhone in June. The widespread expectation by analysts is that the launch will coincide with Apple's World Wide Developer Conference (WWCD) in San Francisco. CEO Steve Jobs is scheduled to deliver his keynote on Monday, June 11.

On Wednesday, iPhone watchers were alarmed by a report posted on tech blog Engadget suggesting that Apple would delay both the iPhone and its next-generation operating system codenamed Leopard until October. Both reports turned up to be hoaxes.

Apple's entry into the cellular phone market will place it in direct competition with smart-phone makers Research In Motion and Palm.

The iPhone, which is expected to include a touch screen and includes a music and video player, will also compete with phones running Microsoft's Windows Mobile operating system.

The iPhone is expected to come in two versions with a starting cost of $500 without the accompanying phone contract from AT&T.