Apple Signs iPhone Deals for Europe

Apple Inc. has signed its first deals with mobile phone operators to offer its iPhone in three of Europe's largest markets, ending a period of intense negotiations, according to a report in the Financial Times newspaper.

Germany's T-Mobile Deutschland GmbH, France's Orange SA and Britain's O2 (UK) Ltd. are reported to have signed exclusive deals to sell the iPhone in their respective markets. The operators have agreed to give Apple 10 percent of the revenue they generate from the sale of voice and data services for the device, according to the report, which cited unnamed sources. The operators hope to introduce the phone in time for the important Christmas shopping season.

Apple plans to announce the deal officially at the IFA international consumer electronics exhibition in Berlin next week, the Financial Times reported.

The iPhone first launched in June in the U.S. through an exclusive partnership with AT&T Corp.. Since then, speculation had been rife about who Apple would partner with in Europe. Most initial reports agreed that T-Mobile and O2 would be among the partners. Some reports, citing unnamed sources, said that Vodafone Group PLC, Europe's biggest mobile operator, had been outbid by rivals in eleventh-hour talks.

Europe's splintered telecommunications market makes it harder for Apple to launch the iPhone here than in the U.S. None of the big carriers cover all of Europe's most populated markets, forcing Apple to strike deals with several operators.

The iPhone could provide a boost for operators in Europe, where customers tend to choose service based on coverage and where brand loyalty is not very strong, Niek van Veen, an associate analyst at Forrester Research Inc., said in a recent interview.

It may also help them to secure longer term contracts with customers, who tend to favor prepaid calling plans in Europe over long-term subscriptions. That same factor could also work against the iPhone in Europe, however. Apple and AT&T require customers to sign up for a two-year contract for the device, an unusually long period.

Apple's steep demands may have made it harder for the company to reach agreements, van Veen said.

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