Germany's Deutsche Telekom is set to start selling pay-as-you-go iPhones following a legal challenge by Vodafone. Its T-Mobile mobile phone operator has agreed to sell Apple's smartphone handset for €999 (£718).

Customers who have already bought the iPhone handset will be able to have their devices unlocked free of charge.

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The report, on the Reuters website, explains that German courts granted Vodafone a preliminary injunction against T-Mobile, which has an exclusive contract with Apple to seel iPhones in the country, preventing it locking the iPhone SIM card to T-Mobile.

France is set to follow the German lead by offering a pay-as-you-go iPhone when it launches there at the end of November.

French iPhone customers will be able to opt whether or not to take up a contract with mobile operator Orange or elect to pay for an unlocked handset.

More details at Reuters' website.