Tuesday, November 27, 2007, 01:00 pm
German MVNO to undercut T-Mobile with 600 euro iPhone rebateGerman mobile virtual network operator (MVNO) Debitel said Tuesday it plans to offer a 600 euro ($891) rebate to customers who buy an iPhone from T-Mobile Germany but agree to use its wireless service instead, undermining much of T-Mobile's competitive advantage.
Reuters reports that Debitel -- which resells airtime it buys from T-Mobile and rivals Vodafone, O2, and E-Plus in Germany -- said it has no qualms about paying the difference in price between an unlocked iPhone and one locked to T-Mobile's network if it means gaining new subscribers.
Although T-Mobile had landed an exclusive deal with Apple to sell the iPhone in Germany, it was ordered by a Hamburg court last week to offer customers an option to buy an unlocked version of the handset that would not require a formal two-year contract and could be used other wireless networks in the country.
T-Mobile and Apple agreed to comply, but did so by pricing the unlocked iPhone at a whopping 999 euros in order to deter consumers from forgoing a T-Mobile contract. The two firms charge less than half that -- 399 euros -- for an iPhone tethered to the T-Mobile network.
In a statement, Debitel said it would begin offering through its stores on Wednesday iPhone contracts starting at 40 euros per month for 200 minutes, which is cheaper than T-Mobile's baseline plan of 49 euros for half as many minutes.
"We are happy to offer iPhone buyers the freedom of choice that customers are entitled to expect from a service provider," said Oliver Steil, Debitel's marketing chief.
Debitel added that customers using Vodafone, E-Plus and O2 networks would get all of Apple's iPhone services apart from visual voicemail which will continue to function only on T-Mobile's network.
On Topic: General
- Google's Motorola issues second appeal of dismissed ITC case against Apple
- South Australia's first Apple Store draws line hours ahead of opening [update: photos and video]
- Rains once more cause damage at Apple's Fifth Avenue NY store
- Steve Jobs's family has been giving money away anonymously for more than 2 decades
- Judge says evidence will likely show Apple culpable in e-book price fixing case