Vodafone challenges exclusive German iPhone deal

Deutsche Telekom requires buyers to sign up to a two-year contract with its T-Mobile wireless network. As well, the iPhone (AAPL:
168.00, -0.89, -0.5%) contains a lock that prevents it from being used on any other network.
But the regional court in Hamburg on Tuesday temporarily prohibited T-Mobile from continuing to sell the iPhone only in combination with that two-year contract, and requested that the device be allowed to function with other networks.
A full hearing on the matter will reportedly take place in Hamburg in two weeks' time.
This could pose significant problems for T-Mobile, which fought hard to secure exclusive rights to sell the iPhone in Germany, just the way AT&T Inc. (T:, , ) did in the U.S. and Telefonica's (TEF:100.12, -1.08, -1.1%) O2 did in Britain.
Vodafone Deutschland, a unit of Vodafone Group Plc (UK:VOD: news, chart, profile) (VOD:, , ) , the
world's largest mobile operator by revenue, kicked off the hostilities by filing a preliminary injunction regarding T-Mobile's marketing rights late Monday.

Vodafone said it doesn't plan to file similar injunctions in other countries where the iPhone is sold.
But analysts cautioned that the case could set a dangerous precedent.
"The major risk is that if the German market is going to have an unlocked device, then it would likely be the end of Apple's exclusive deals with carriers," said Carolina Milanesi, research director in the mobile and wireless device practice of Gartner Group.
"Apple may have to rethink its business model and revenue-share agreement earlier than they planned to," she said.
Deutsche Telekom shares were flat in Frankfurt afternoon trading, underperforming the broader market. Vodafone shares slipped 0.2% in London.
In France, Apple recruited France Telecom's (FR:013330: news, chart, profile) Orange mobile phone subsidiary to sell the iPhone. But national laws barring the locking of phones mean the U.S. company is expected to offer devices that could work on any network starting Nov. 29.
Vodafone will launch its own multifunctional handheld-computer phone, the QBowl, before Christmas as a direct competitor to the iPhone.
source: http://www.marketwatch.com
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