T-Mobile to sell iPhone without a contract in Germany

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T-Mobile's German division has today announced that it will allow customers to buy Apple's iPhone without having to sign a two-year T-Mobile airtime contract. The decision follows the imposition of a court injunction preventing the company from linking sales of the phone to sales of an airtime deal.

However, Brits and Europeans thinking that they can now buy a standalone iPhone and either unlock it or use it on a pay-as-you-go SIM are in for a nasty shock - iPhones sold in Germany without a contract will cost a hefty €999 (£715), compared to €399 (£285) with a contract.

Britain's Vodafone, which has a large presence in the German market obtained the injunction against T-Mobile Germany.

T-Mobile is the only outlet for the iPhone in Germany. Apple has no retail stores of its own in the country and thus is entirely reliant on its network partner to retail the device.

Prior to today's announcement, customers had to sign up to one of a selection of two year T-Mobile airtime contracts costing a minimum of €1,176 (£845) over the life of the agreement.

At the end of this month, the iPhone goes on sale in France, where the locking of phones to a single network operator is illegal. There are also restrictions on bundling phones with airtime contracts. No price has been announced for a contract-free French iPhone.

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