Two New iPhone Sellers for Germany

DÜSSELDORF, Germany—Deutsche Telekom AG will lose exclusivity for Apple Inc.'s iPhone in Germany ahead of the holiday shopping season, bringing the number of providers that sell the device in the country to three, people familiar with the matter said.

Vodafone Group PLC and Telefónica SA's O2 will sell the iPhone in addition to Deutsche Telekom, the people said Thursday. One said that deals haven't been finalized, but added that negotiations are in an advanced stage. Deutsche Telekom's exclusive rights to sell the device haven't been extended and could end as early as October, posing a threat to growth in the company's home market.

Deutsche Telekom's mobile-service revenue has outperformed that of its rivals in recent quarters, partly because Deutsche Telekom has held exclusive rights to sell the iPhone in Germany since November 2007. The country is the last major European market in which one provider has exclusive rights to sell the iPhone.

Deutsche Telekom had sold at total of 1.9 million iPhones in Germany as of June 30, according to the company.

In the quarter ended June 30, Deutsche Telekom's mobile-service revenue rose 6.1% from a year earlier in the company's home market. against a 0.2% increase at Vodafone.

At the same time, Deutsche Telekom has been frustrated over delayed iPhone 4 shipments from Apple. Niek Jan van Damme, managing director of Deutsche Telekom's German business, complained to the German magazine Focus last weekend that German consumers have to wait nine weeks for the iPhone 4.

Meanwhile, German customers can buy older iPhone models through alternative distributors. Those models, including the 3G, work on any cellular network and cost about €650 ($830).

Deutsche Telekom customers pay as little as €1 for the devices on a 24-month contract.

In the U.K., O2 lost exclusivity ahead of last year's holiday season, while in France the market opened up to rivals of France Télécom SA's Orange after a legal ruling.

According to the latest figures available, Deutsche Telekom has 37 million mobile customers in Germany. Vodafone has 34.9 million mobile customers in the country, while O2 has 16.3 million customers.

Deutsche Telekom, Vodafone, O2and Apple all declined to comment.

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