iPhone Must Be Offered Without Contract Restrictions, German Court Rule

[Skeptik]

IPhone Must Be Offered Without Contract Restrictions, German Court Rule

Rolf Nvennenbernd/European Pressphoto Agency


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By VICTORIA SHANNON
Published: November 21, 2007

PARIS, Nov. 20 — Last month, French law forced Apple to promise that consumers could buy a version of its iPhone in this country without having to be locked into a long-term contract with Orange, the only mobile phone operator offering the new device.

Now, the same issue is tripping up Apple’s plans to sell the music-playing cellphone in Germany, the largest European telephone market. Last week, the Vodafone Group won the first round of a legal case against T-Mobile over its exclusive deal to sell the iPhone there.

A German court ruled that T-Mobile must offer the iPhone to everyone, even without the 24-month contract that it had required for buyers of the phone, which went on sale in Germany for 399 euros ($591) on Nov. 9. T-Mobile is appealing the ruling.

Vodafone of Britain had tried to secure its own pan-European exclusive deal with Apple for the iPhone. A spokesman, Simon Gordon, said the company was not trying to block the sale of the device but rather trying to level the playing field in Germany. Vodafone operates Vodafone Germany, the No. 2 German carrier. T-Mobile, a subsidiary of Deutsche Telekom, is the industry leader there, with 34 million customers.

Various European countries have laws that protect consumers from being forced to buy something else as a condition of buying a product. Britain does not have the same kind of restrictions, allowing O2, a mobile network operator owned by Telefónica of Spain, to sell the iPhone there with an 18-month exclusive contract.

Although Apple has announced sales plans for only the three largest European markets, restrictions on whether carriers can tie or subsidize phones also exist in several other Continental countries, including Belgium, Italy and Finland.

T-Mobile’s position is that tying a mobile phone to a contract with one provider is rare but not new in Germany, while Vodafone argues that all mobile phones sold there should be available for use with any provider. T-Mobile insisted that iPhone sales would continue uninterrupted, but warned that it reserved the right to seek damages from Vodafone.

The iPhone is scheduled to go on sale next week in France. The exclusive French carrier, Orange, a subsidiary of France Télécom, has not disclosed any details of the purchase, like the minimum length of the contract for locked models, or the cost of the unlocked model. An Orange spokeswoman, Béatrice Mandine, did not return phone calls seeking comment on Tuesday.

The iPhone competes directly with models from Nokia and Sony Ericsson, which have the widest offerings in phones that combine digital music players and cellphones, according to an analysis released this month by the consulting firm M:Metrics. The consultancy also said that the demand for premium phones and features was stronger in Europe than in the United States.

A year ago, a French court ruled against Sony’s requirement that songs sold in its online music store be played only on Sony devices. Apple faces a similar court challenge in France over its iTunes songs, which are tied to the iPod. The iPod’s music- and video-playing features are built into the iPhone.

http://www.nytimes.com/2007/11/21/t...l?_r=2&ref=technology&oref=slogin&oref=slogin
And when it comes here will we be tied in to a network?

 

[bwana]

And when it comes here will we be tied in to a network?

When? How about 'if'. There are no guarantees.

 

[Ivan...]

This might be a dumb question but will an iPhone bought in America (an AT&T iPhone) work with a german T-Mobile simcard?

 

[Skeptik]

Since Voda themselves made a competitor complaint, one would assume they will make it available on prepaid (if at all).

 

[Skeptik]

This might be a dumb question but will an iPhone bought in America (an AT&T iPhone) work with a german T-Mobile simcard?

No, because the phone would be network locked.

You can get it unlocked, but that can cause problems with firmware upgrades and may result in 'bricking' of the phone.

 

[Ivan...]

No, because the phone would be network locked.

You can get it unlocked, but that can cause problems with firmware upgrades and may result in 'bricking' of the phone.

I know about the unlocks and hacks. I was just hoping that Apple was clever enough to allow people to use different simcards, because roaming can be pricy. But then again, it would cause Americans to import German/French iPhones or vice versa depending on which is cheaper.

 

[bwana]

Since Voda themselves made a competitor complaint, one would assume they will make it available on prepaid (if at all).

In Germany?

 

[SlinkyMike]

I think that it may be wise to wait till after xmas etc. before making any decision if you are planning an import 'n hack.

Just rumors at this stage (and we know how it goes with rumors right?) but it seems that Vodaphone may have bagged the 3G iPhone deal for distribution everywhere that they operate:

http://www.engadget.com/2007/11/20/vodafone-to-have-exclusive-rights-to-3g-iphone-in-q1/

Excerpt:"The launch of the 3G iPhone would occur simultaneously in all countries where the carrier operates but will not be announced until after the holidays (MacWorld?) to avoid impacting sales of the existing iPhone. The timing jibes well with other rumors calling for a 3G release before May"

I'm sure anyone who got into a deal with O2 to get an iPhone would be fuming if this wa to happen - not to mention the carrier who has an 'exclusive' deal, maybe exclusively the non 3G iPhone?
Who knows but at any rate mid to late Jan is a good time to look at it IMO.