Tuesday, November 27, 2007, 01:00 pm
German MVNO to undercut T-Mobile with 600 euro iPhone rebate
German 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.
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German 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.
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Hmmm, first post maybe...
40 Euros for 200 minutes beating T-Mobiles 49 Euros for half the minutes, all for gaining a new subscriber by paying $891.00 US Dollars to get them in the first place - sounds like a winner - what kind of commitment do these new subscribers need to make so
Debitel can recoup their money? What about other services data, visual voicemail, etc.?
Sound Business Plan on Debitel's behalf!
Wonder if T-Mobile will match rebate or sue for loss of revunue?