Although in September Orange, the mobile phone division of France Telecom, was announced as the iPhone distributor in France, France Telecom and Apple are still negotiating the terms of agreement.

On September 20 France Telecom's chief executive Didier Lombard announced the deal with the US technology giant on the sidelines of a telecommunications conference in Hanoi, but Orange didn’t release any details about the prices or service plans.

And, according to French media, France Telecom is not so happy with Apple’s business model. It was widely rumored that Apple has signed with the European telecom giants a contract for iPhone’s distribution, according to which the carriers must share their iPhone-generated revenues with the Cupertino computer manufacturer. The deal allegedly stipulates that carriers will provide Apple with 10% of the revenues made from calls and data transfers by customers over iPhones.

But the French newspaper Journal de Dimanche said that France Telecom is still trying to negotiate the deal and it will announced in the next few days if it will remain or not the exclusive distributor of iPhone in France.

According to the French daily Les Echos the French would require the iPhone to be sold both with and without contracts. Anticipating some potential losses because of that, Apple has tried to rise its share from earnings, which was unacceptable for France Telecom.

But Journal de Dimanche said that despite the tensions is very likely that the two companies would reach an agreement.

The iPhone will go on sale in UK and Germany on November 9. T-Mobile will be the exclusive German carrier of Apple’s iPhone and it has secured rights to the device in Austria, Hungary, Croatia and the Netherlands.

In UK, the iPhone will be distributed by Telefonica’s O2.