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€1 T-Mobile iPhone

9:00 AM -- T-Mobile International AG will sell the 8GB 3G iPhone for just €1 ($1.55), but consumers will have to sign up to contracts for €69 ($107) or €89 ($138) per month to get the iconic device for that price. On T-Mobile’s lowest price plan of €29 ($45) per month, the 8 GB iPhone will cost €169.95 ($263). (See iPhone II: Touching 3G , iPhone Data Booms at T-Mobile, Schnell! Lock das iPhone! , VOD Spoils iPhone Fun, and T-Mobile Unlocks iPhone.)

For the 16GB version of the new iPhone, German consumers will pay just €19.95 ($31) on a monthly tariff of €89 ($138), and €249.95 on the €29 ($45) monthly tariff.

But don’t be fooled by the €1 price tag. A rough comparison of T-Mobile’s €1 iPhone offer on a €89 ($138) monthly tariff with AT&T’s 8GB model price plan in the U.S., where the device will cost $199 and the monthly tariffs will be $30 per month for data and $39.99 per month for voice, shows that German consumers opting for the €1 iPhone will pay a lot more for their iPhone services. Over the course of one year, T-Mobile iPhone customers in Germany will pay $1,657.55 for the device and services, while AT&T customers will pay $1,038.88 for an iPhone and monthly tariff. (See AT&T’s iPhone Pain.)

— Michelle Donegan, European Editor, Unstrung

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