T-Mobile keeps German iPhone monopoly

December 6, 2007

T-Mobile in Germany will offer exclusive two-year iPhone contracts

The regional court of Hamburg decided earlier this week that wireless carrier T-Mobile, a unit of Deutsche Telekom, could lock its iPhone customers into an exclusive, two-year contract in Germany.

The court officially lifted the injunction obtained last month by rival carrier Vodafone, which temporarily stopped T-Mobile from selling iPhones only with exclusive contracts or SIM cards that restricted use on another carrier’s wireless systems.

T-Mobile’s agreement with Apple follows agreements the multimedia device manufacturer has with other carriers around the world. AT&T is Apple’s U.S. partner for the iPhone. Apple shares revenue from iPhone usage with its carrier partners.

As the sole distributor for the iPhone in Germany, T-Mobile requires customers to sign a 24-month contract to use the iPhone on T-Mobile’s Edge network. Customers can’t buy the device without a SIM card, limiting its use to only T-Mobile customers.

In neighboring France, Apple was forced to offer an "unlocked" version of its iPhone, which is distributed by Orange, to comply with a law that prohibits bundling the device with an exclusive service contract.

Apple still faces two consumer lawsuits in the United States that accuse the company of unlawfully restricting consumers' choice by preventing users from unlocking their iPhones.
Vodafone said it will analyze the Hamburg ruling before deciding what action to take.