DT said it will offer the iPhone for 999 euros ($1,480) without a contract and for 399 euros for consumers making a two-year commitment to the phone. The issue was brought to a head by Vodafone Group, the second largest mobile phone service provider in Germany. Vodafone sued DT in German courts.
Vodafone, which owns 45% of Verizon Wireless in the U.S., said it did not plan to challenge Apple's exclusive iPhone deals in other countries. The T-Mobile decision to offer the iPhone unlocked and without a contract goes to the heart of the "openness" issue that has been challenging the mobile phone business worldwide. In the U.S., Google's Open Handset Alliance seeks to open up cell phone access across different service providers.
Regulations governing the marketing of cell phones and cell phone service varies from country to country in Europe; Vodafone took advantage of German regulations and charged DT's T-Mobile operation violated competition laws. With France Telecom preparing to launch the iPhone in France next week, the exclusivity issue could be raised there, too.
In the U.S., Apple has an exclusive arrangement with AT&T to market the iPhone. There is some irony in DT's situation in the U.S. where its T-Mobile unit can't market the iPhone while its parent company has been forced to offer the coveted phone to all comers in Germany.
The $1,480 high price for a standalone iPhone is likely to put a lid on single sales of the phone, but the opening up of mobile phone networks in Germany could lead to bootleg sales of the phone acquired elsewhere.
While DT moved to comply with the orders issued by the German court in Hamburg, it noted that the dispute will be examined in detail at a hearing in two weeks; in the meantime, DT said it is reserving the right to claim damages from Vodafone.
2014 Next-Gen WAN SurveyWhile 68% say demand for WAN bandwidth will increase, just 15% are in the process of bringing new services or more capacity online now. For 26%, cost is the problem. Enter vendors from Aryaka to Cisco to Pertino, all looking to use cloud to transform how IT delivers wide-area connectivity.
The UC Infrastructure TrapWorries about subpar networks tanking unified communications programs could be valid: Thirty-one percent of respondents have rolled capabilities out to less than 10% of users vs. 21% delivering UC to 76% or more. Is low uptake a result of strained infrastructures delivering poor performance?
Join us for a roundup of the top stories on InformationWeek.com for the week of December 7, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program!