T-Mobile responds to Vodafone injunction, unlocks iPhone

November 26, 2007

iCandy

German consumers can now buy the Apple iPhone without the 24-month contract that was required by an exclusivity agreement between Deutsche Telekom's T-Mobile and Apple.

This move by T-Mobile complies with a court injunction filed by British telecoms group Vodafone to stop the German wireless carrier from binding customers into two-year agreements that include data plan rates with T-Mobile’s Edge network. The preliminary order was passed down by a Hamburg court Nov. 12 (see www.mobilemarketer.com/cms/news/legal-privacy/97.html).

T-Mobile said Nov. 21 that it will sell customers the handset without a contract for 999 euros ($1,477) – a significant increase over the 399 euros ($584) with the two-year T-Mobile contract.

T-Mobile said it will continue to offer the iPhone for 399 euros ($590) in combination with a two-year contract.

Germans who buy the unlocked iPhone will be unable to use the phone’s HTML email client. They will not have full Internet access and connectivity to iTunes Wi-Fi Music Store either.

In a further attempt towards compliance, T-Mobile said it will allow customers who bought an iPhone on or after Nov. 19 to unlock the device free of charge.

More than double the cost without the contract, the price tag on the unlocked iPhone mimics T-Mobile's retail pricing for other mobile devices. It sells the Nokia N95 for 199.95 euros ($295.63) with a two-year contract, or 619.95 euros ($916.60), with no contract.

Meanwhile, T-Mobile Nov. 20 said it would consider an appeal to the injunction and may seek damages.