Vodafone stymies T-Mobile's iPhone exclusive

Stephen Withers
Wednesday, 21 November 2007 01:01

Your IT - Mobility

A court in Germany has granted Vodafone a preliminary injunction against T-Mobile's requirement that iPhone buyers sign up for a 24-month contract.

Vodafone is not the only carrier concerned about the arrangement: Debitel has lodged a complaint with the German telecommunications regulator about T-Mobile's strategy, claiming that the practice of linking a device to a single network is not permitted.

T-Mobile sells the iPhone with a 24-month contract.

The matter seems to be self-inflicted from Apple's perspective. From the start, Apple has asserted that the iPhone is unsubsidised, even though its business model involves taking a cut of the carriers' revenues associated with iPhone usage.

One possible outcome is that Apple and T-Mobile may offer German buyers an unlocked iPhone at a large premium, perhaps as much as the cost of 24 months service.

The main disadvantage of using an iPhone on an 'unofficial' carrier is that the handset's visual voicemail feature would not work, as it relies on modifications to the carrier's voicemail system. According to one report, 5000 iPhone buyers are already using the Vodafone network.

A full hearing of the matter is expected to begin within two weeks. If T-Mobile's position is upheld, it may sue Vodafone for any damage suffered while the preliminary injunction is in effect.

The iPhone goes on sale in France later this month. So far there is no official word about how Apple and Orange will comply with French unlocking requirements.