Vodafone Hits Deutsche Telekom With iPhone Lawsuit

By Dan Keane
13:03, November 20th 2007
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Vodafone Hits Deutsche Telekom With iPhone Lawsuit

Few days after its launch, the iPhone has already become the apple of discord between Vodafone and Deutsche Telekom.

On Monday British-owned Vodafone said it had won a court order requiring Deutsche Telekom, the official distributor of the Apple iPhone in Germany, the sell the gadget without a mandatory calling plan.

Apple’s iPhone went on sale on November 9 in Germany at 399 euros ($590) and Deutsche Telekom requires buyers to sign up to a two-year contract with its T-Mobile wireless network.

T-Mobile has already reported that they sold over 10,000 devices during the first day on sale.

British-owned Vodafone said the injunction, to apply until substantive argument before a court on the case, had been obtained from a court in Hamburg. A court spokeswoman said that T-Mobile, which secured the rights to sell the iPhone exclusively in Germany, can file an objection. Deutsche Telekom confirmed it had received a temporary injunction.

“We will review the ruling and decide within the next 48 hours how to react,” said Alexander von Schmettow, a T-Mobile spokesman.

A court spokeswoman said that T-Mobile, which secured the rights to sell the iPhone exclusively in Germany, can file an objection. A court spokeswoman said that T-Mobile, which secured the rights to sell the iPhone exclusively in Germany, can file an objection.

Vodafone officials explained their action is not an attempt to halt the iPhone sales, but rather to force Apple and Deutsche Telekom to sell the device without a mandatory plan.

"We want it to be available to buyers without a mandatory calling plan," he said. "If I had wanted to halt sales, I could have, but I didn't.", Vodafone Deutschland head Friedrich Joussen said in an interview in for Frankfurter Rundschau. Joussen said he expected a substantive ruling within two weeks.

According to the German newspaper Spiegel, Joussen also fears that Apple’s example could represent an inspiration for other mobile phone makers to tie their phones with specific providers.

Unlike other handset makers, Apple has managed to lure the telecom giants into signing a contract for iPhone’s distribution, according to which the carriers must share their iPhone-generated revenues with the Cupertino, CA-based computer manufacturer.

Although there is little known abut the terms of agreement between Apple and mobile carriers there were rumors that the deal allegedly stipulates that carriers will provide Apple with 10% of the revenues made from calls and data transfers by customers over iPhones.

Also, before iPhone was announced for Europe there have been reports that Vodafone refused to share its revenues with Apple.

In June, during the iPhone launch, Steve Jobs confirmed that before signing the deal with Telefonica’s O2 and Deutsche Telekom’s T-Mobile he spoke with other carriers as well.

“It's kind of like getting married," Jobs joked. "We dated a few people but didn't get married to them. I guess there are a few upset girlfriends out there.”

According to a research note released by Gene Munster, a Piper Jaffray analyst, in July, AT&T gives Apple $3 per month (over the life of the 24 month contract) for every iPhone customer already with AT&T and $11 per month for every new subscriber.

A Vodafone spokesman in London said the injunction was purely linked to the German market and the group did not have any plans to repeat it anywhere else, Reuters reported.



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