iPhone Sales Frozen

The stylish touchscreen phone and music player went on sale this month in Germany with Telekom as its exclusive vendor. Deutsche Telekom requires buyers to sign up to a two-year contract with its T-Mobile wireless network.

The German unit of Vodafone took its grievance over the iPhone's exclusive use in T-Mobile's network and the use of the device being limited to certain fees within T-Mobile's subscription offerings to a regional court in Hamburg.

The court then issued the restraining order on sales which will apply until a substantive argument is brought before a court. Temporary injunctions such as the one issued against Telekom can be overturned on appeal.

T-Mobile confirmed the restraining order has been issued, adding that the company was examining the issue.

Vodafone aim not to stop sales completely

Vodafone Germany chief executive Friedrich Joussen said that Vodafone wasn't generally opposed to T-Mobile's exclusivity contract with Apple, adding that the company did not want to halt iPhone sales but wanted to have these new sales practices examined.

"We want it to be available to buyers without a mandatory calling plan," he said. "If I had wanted to halt sales, I could have, but I didn't." Joussen said he expected a substantive ruling within two weeks.

Vodafone will launch its own multifunctional handheld-computer phone, the QBowl, before Christmas as a direct competitor to Telekom's iPhone monopoly.

Apple has stipulated that in Germany, as in the United States, the iPhone should be placed in the hands of the leading mobile phone operator on condition the phones are dedicated to one network and that Apple gets a cut of revenues. The iPhone contains a lock which prevents it from being used on any other network.

Telekom sales practice could change industry

While Vodafone stated it was pursuing legal action only in Germany as it felt specific national rules on access to networks were being broken, the company is actually concerned that other handset makers, such as Nokia or Ericsson, could adopt similar strategies. The UK-based company fears that this could restrict consumers' choice and disrupt mobile operators' existing revenue streams.

In France, Apple recruited France Telecom's Orange mobile phone subsidiary to sell the iPhone. But national laws barring the locking of phones meant the US company had to offer devices that could work on any network.

Crazy for iPhone

The release of the iPhone in Europe earlier this month caused mayhem. Deutsche Telekom said it had sold more than 10,000 of the heavily hyped gadgets by mid-afternoon on Nov. 9, the first day on sale.

Apple said it sold 1 million in the first 74 days after the device went on sale in the United States on June 29.

The new-era mobile phone retails in Germany for 399 euros ($585).