iPhone Buyout Offer in Germany

It was widely expected that the introduction of an official unlocked iPhone, due to European laws, would have a big impact on the dynamics of the market, but despite the unlocking coming earlier than expected, the big boom has only just arrived.

German mobile
virtual network operator Debitel has announced that it will be offering a 600 Euro rebate to people who buy an unlocked iPhone from T-Mobile Germany but sign a contract with them instead. Considering that T-Mobile sells the locked iPhone for 399 Euro, this rebate effectively eliminates the cost of getting an unlocked iPhone, and gives users the freedom to use it on the carrier that better suits their needs.

Considering that Debitel sells airtime it buys from T-Mobile and rivals Vodafone, O2, and E-Plus in Germany, users will be able to use whatever carrier they prefer. "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.

In one swift move, Debitel has essentially eliminated any advantage T-Mobile might have had because of their partnership with Apple, and the company has no qualms with paying the difference as long as it gets them new subscribers. The company will start offering contracts starting at 40 Euro a month for 200 minutes, cheaper than T-Mobile’s base offering of 49 Euro for only half the minutes. Customers that opt for using the Vodafone, E-Plus and O2 networks will – of course – not benefit from Visual Voicemail, but all other features of the iPhone will function properly.

What is amazing about Debitel is not only the offer they are coming out with, but the frankness with which they are doing it. They are clearly offering to buy you out of the T-Mobile contract, and not sugar coating it in any way. This could be a seriously nasty development for Apple, as Debitel won’t be sharing any revenue with them, and they stand to lose a lot of potential customers who prefer the more competitive service plans or network coverage. It will also be interesting to see if this move is mirrored in France, where it could be even more popular if the unlocked version of the iPhone will indeed sell for "significantly less" than in Germany.