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Under pressure, T-Mobile unlocks iPhone in Germany

Posted by Michiel on November 24, 2007, 11:50 am
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By Jeremy Kirk, IDG News Service
T-Mobile will sell an unlocked version of Apple’s popular iPhone in Germany while it fights a legal challenge from rival Vodafone, the company said on Wednesday.
The move comes two days after a court granted an injunction requested by Vodafone mandating that T-Mobile either sell an unlocked version of the iPhone or withdraw the product from the market.
Vodafone contends German competition law prohibits an operator from selling a locked phone with a two-year contract. At midday Wednesday, T-Mobile announced it will sell an unlocked version of the iPhone for €999 (US$1,481). T-Mobile sells a locked 8G-byte iPhone in Germany for €399 including 19 percent value-added tax.
However, T-Mobile is appealing the injunction and will withdraw the unlocked version if the company prevails, said Klaus Czerwinski, a T-Mobile spokesman, based in Bonn. T-Mobile is also considering filing for damages against Vodafone.
“We think the law does not apply to this situation,” Czerwinski said. “We are still going to court.”
The unlocked version means that users can put in a SIM (Subscriber Identity Module) from another operator and subscribe to a different—and perhaps cheaper—service plan.
European consumers are used to getting free or heavily subsidized phones if they sign up for a long-term contract, but those handsets usually won’t work on other networks. Unlocked phones command a higher price.
T-Mobile is the second European service provider to agree to offer an unlocked iPhone. Apple’s partner in France, Orange, said it would offer an unlocked version of the mobile device for a premium price. French law forbids bundling the sale of a mobile phone and mobile operator. The iPhone goes on sale in France on November 29.
Apple’s strategy of securing agreements with just one operator has rankled many interested in the iPhone. The iPhone’s relatively high price and 18- to 24-month service contracts caused hackers to find ways to break the software locking the phone to one operator. Apple has been patching its software to nullify the hacks.
Vodafone said users who opt for the unlocked version will miss out on some of the features that are exclusive to the company’s network, such as the iPhone’s Visual Voicemail, which lets users select and listen to messages, Czerwinski said.
By the end of next month, Vodafone will have the only nationwide EDGE (Enhanced Data Rates for GSM Evolution) network coverage throughout Germany, Czerwinski said. EDGE enables download speeds between 70K bps (bits per second) to 135K bps.
The iPhone can use EDGE and Wi-Fi networks but lacks 3G (third-generation) capabilities. Vodafone contends its flat-rate data traffic package is the most competitive in the German market since the iPhone uses a lot of data.
Vodafone was among several operators vying to be the iPhone’s sole supplier in Germany but lost out to T-Mobile. T-Mobile said it sold 15,000 iPhones when it went on sale in Germany on Nov. 9.

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MW Forums
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Reged: 08/02/04
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Under pressure, T-Mobile unlocks iPhone in Germany
#552895 - 11/21/07 10:30 AM Edit Reply Quote Quick Reply

T-Mobile in Germany will sell an unlocked version of Apple's iPhone while it fights a legal challenge from rival Vodafone. [more]
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KPO'M
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Reged: 11/29/01
Posts: 1331
Re: Under pressure, T-Mobile unlocks iPhone in Ger [Re: MW Forums]
#552901 - 11/21/07 01:44 PM Edit Reply Quote Quick Reply

As discussed in the other thread, this isn't much of a concession, since I highly doubt T-Mobile is giving Apple a €600 subsidy. €200 is more typical, so if this went for €599, or even €699-750, it would be "good faith," but this clearly is an attempt to meet the minimum requirements of the injunction while still fighting it. Let's see what happens in France next week.
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hagen
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Reged: 03/15/05
Posts: 116
Re: Under pressure, T-Mobile unlocks iPhone in Ger [Re: KPO'M]
#552908 - 11/21/07 02:00 PM Edit Reply Quote Quick Reply

And why would they do more than the minimum required? I want to upgrade my Mac, are you going to give me $300 to help me?
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zensunni
Member

Reged: 09/11/04
Posts: 123
Loc: London, UK Re: Under pressure, T-Mobile unlocks iPhone in Ger [Re: KPO'M]
#552914 - 11/21/07 02:21 PM Edit Reply Quote Quick Reply

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this clearly is an attempt to meet the minimum requirements of the injunction while still fighting it. Let's see what happens in France next week.

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Hopefully they'll be found to be in contempt of the injunction, since making it available for €999 is just as silly as offering it for €9,999--the price is completely unreasonable and against the spirit of the law.
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JakeB
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Reged: 09/12/06
Posts: 41
Loc: Latin Quarter, Paris Re: Under pressure, T-Mobile unlocks iPhone in Ger [Re: hagen]
#552925 - 11/21/07 02:40 PM Edit Reply Quote Quick Reply

Quote:
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And why would they do more than the minimum required? I want to upgrade my Mac, are you going to give me $300 to help me?

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Words 'false analogy' mean anything to ya? Following poster is right, might as well offer the phone for nine million and ninety nine euros.
What gets me, is all the Average Joe's arguing for the companies who're screwing them. Listen, buddy, it's in ALL our interests as CONSUMERS that the iPhone be offered unlocked so we can choose a competitive plan.
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KPO'M
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Reged: 11/29/01
Posts: 1331
Re: Under pressure, T-Mobile unlocks iPhone in Ger [Re: JakeB]
#552930 - 11/21/07 02:54 PM Edit Reply Quote Quick Reply

Quote:
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Words 'false analogy' mean anything to ya? Following poster is right, might as well offer the phone for nine million and ninety nine euros.
What gets me, is all the Average Joe's arguing for the companies who're screwing them. Listen, buddy, it's in ALL our interests as CONSUMERS that the iPhone be offered unlocked so we can choose a competitive plan.

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