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T-Mobile Germany to offer 3G iPhone for 1 euro

Under the arrangement, customers must sign up for the telecom provider's monthly 69-euro service plan.

T-Mobile is gearing up to offer a 3G iPhone in Germany for only 1 euro, provided users sign up for its monthly 69-euro service plan, according to a Reuters report on Monday.

That translates into an iPhone purchase of roughly $1.55, and a monthly service plan of $107.

Under T-Mobile's offering, the telecom provider will sell the phones with 8GB of memory, while a 16GB phone will go for 19.95 euros, or nearly $31.

T-Mobile's announcement of its 3G iPhone offering comes a week after Apple rolled out the latest version of its popular cell phone.

T-Mobile in Germany is underwriting the deeply discounted phone with the help of a renegotiated contract with Apple, which no longer requires the carrier to share some of the revenues generated via iPhone calls with Apple, according to the report.

This move has yet to be seen in the U.S., where AT&T is the exclusive carrier of the iPhone. However, AT&T no longer has to share its revenue with Apple.

Whether AT&T will eventually drop the current 8GB iPhone price of $199 and 16GB iPhone price of $299 to just a couple bucks has yet to be seen.