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June 16, 2008 9:42 AM PDT

T-Mobile Germany to offer 3G iPhone for 1 euro

by Dawn Kawamoto

T-Mobile is gearing up to offer a 3G iPhone in Germany for only 1 euro, provided users sign up for its monthly 69-euro service plan, according to a Reuters report on Monday.

That translates into an iPhone purchase of roughly $1.55, and a monthly service plan of $107.

Under T-Mobile's offering, the telecom provider will sell the phones with 8GB of memory, while a 16GB phone will go for 19.95 euros, or nearly $31.

T-Mobile's announcement of its 3G iPhone offering comes a week after Apple rolled out the latest version of its popular cell phone.

T-Mobile in Germany is underwriting the deeply discounted phone with the help of a renegotiated contract with Apple, which no longer requires the carrier to share some of the revenues generated via iPhone calls with Apple, according to the report.

This move has yet to be seen in the U.S., where AT&T is the exclusive carrier of the iPhone. However, AT&T no longer has to share its revenue with Apple.

Whether AT&T will eventually drop the current 8GB iPhone price of $199 and 16GB iPhone price of $299 to just a couple bucks has yet to be seen.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
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by Mikeatle June 16, 2008 10:35 AM PDT
ATT would have to pay me to use an iPhone with their service. I'd love to have an iPhone, but ATT's service is just too spotty where I live.
Reply to this comment
by ReVeLaTeD June 16, 2008 12:57 PM PDT
If T-mo were to do this type of deal in US, it would skyrocket them into notoriety. I would absolutely do it for just the data.
Reply to this comment
by boopiejones June 16, 2008 4:24 PM PDT
woah, wait a sec. i could have sworn posters on cnet less than 6 months ago were saying the iphone would NEVER drop in price drastically. definitely not to even $200, let alone a buck fitty. i told you so.
Reply to this comment
by Emmanuel_von_Angst June 17, 2008 2:30 AM PDT
I don't know who would tell you that since it's ridiculous to claim. All nearly-obsolete technology drops in price. Let's not fool ourselves here either, the iPhone's only semi-'revolutionary' tech element was the multitouch screen. The package looks real pretty but that's the MO of Apple.
Really pretty package, under powered once you take a peek under the hood.
by grandhirk June 16, 2008 9:28 PM PDT
I will never use an Iphone even if it is free with T mobile. Had the worst exprerience with ther service (or lack of it) in Northern California.
Reply to this comment
by ayoung45 June 17, 2008 4:02 AM PDT
I really hope that other carriers will be able to pick up the iphone. Competition will open doors for the consumers... actually, lets see Apple upgrade the Touch (and make it cheaper, but I doudbt that).
Reply to this comment
by make_or_break June 17, 2008 1:16 PM PDT
So T-Mobile Germany is willing to make an iPhone a loss leader. I'm sure with the kickbacks Apple gets from their contracted service providers, they don't give a rat's azz about it. It's about VOLUME, baby, not about price per unit. Hook up all those unsuspecting T-M customers in Das Vaterland with that hefty monthly rate...Apple and T-M will easily make up those subsidies with the basic phone price, and fast.
Reply to this comment
by Martintest June 17, 2008 2:45 PM PDT
Here is the nice thing about Europe / Germany: Tax has to be included in the sale price. Those "additional fees and surcharges" are illegal over there so they can not trick you.
Reply to this comment
by benjaminstraight June 22, 2008 3:19 PM PDT
What a good price.
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by benjaminstraight August 3, 2008 2:31 PM PDT
That is cheap!
Reply to this comment
by famous000 March 22, 2009 8:21 AM PDT
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