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VODAFONE has taken legal action to prevent iPhone buyers from being tied into contracts with German telco T-Mobile, which may set a precedent for legitimately unlocking iPhones.
Apple's gadget has been restricted to one single network in each country it has been released in, much to the frustration of iPhone fans on other networks.
Hackers discovered how to remove the network lock shortly after the device was released, which lead to a large grey market in unlocked iPhones. However, unlocking an iPhone voids the warranty and any software updates may disable (or "brick") the device.
T-Mobile will allow customers in Germany to buy Apple's iPhone without having to sign a T-Mobile contract after rival Vodafone obtained a court injunction against it.
T-Mobile said it will offer the iPhone without a T-Mobile contract for €999 ($1,703) at its shops.
It will also allow those customers who bought an iPhone after November 19 to unlock the device free of charge so it can be used with other SIM cards.
However, this will not enable customers to make use of all the functions that the music-playing and web-browsing device offers.
T-Mobile has an exclusive deal with Apple to sell the iPhone in Germany, where Apple has no stores.
Until now, customers had to sign up to a 24-month T-Mobile contract costing a minimum of €1176 ($2005) in order to buy the €399 ($680) phone.
A German court granted Vodafone a preliminary injunction this week preventing T-Mobile from locking the iPhone's SIM card to T-Mobile when making a sale.
T-Mobile said it will comply with the injunction until the situation has been clarified by a court.
Vodafone had hoped to win exclusive rights to sell the iPhone in Europe but lost out to T-Mobile in Germany, O2 in Britain and Orange in France.
In Britain the iPhone costs £269 ($637) on top of an 18-month contract costing a minimum of £35 pounds ($83) per month. It will go on sale in France at the end of the month.
German mobile phone operator Debitel has also lodged a complaint with Germany's telecoms regulator about T-Mobile's iPhone deal arguing it was not acceptable to link the use of the iPhone exclusively to T-Mobile's network.
The iPhone is scheduled for release in Australia next year, but Apple have not announced which network the handset will be locked to.
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iPhone Australia, iPhone hacks , iPhone news
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