German telecommunication company Deutsche Telekom (DT) will be marketing Apple's iPhone exclusively in Germany where it launches Nov. 9.

As well as the connection to T-Mobile, DT's wireless service subsidiary, the iPhone costs €399 ($556.60), plus data charges. Apple CEO Steve Jobs and DT CEO René Obermann revealed the pricing in Berlin yesterday.

"If you deduct the German VAT (value added tax), this is roughly the same as the price in the USA", Jobs said.

DT has to pay some of the monthly revenues generated via iPhone to Apple, but both companies declined to give details. And German regulators will not allow Apple to offer the iPhone via its own online store, unlike the United States and Great Britain.

iPhones in Germany will have access to that country’s iTunes Music Store, putting DT in the position of offering a mobile music service that competes with its own Musicload.de digital-music service.

Obermann said that there is more to the partnership than the music service. "The iPhone is an important module for stabilizing business in Germany. We need partnerships with Apple in order to make mobile Internet a success," he added.

T-Mobile also has iPhone distribution rights in place for Austria, Hungary, Croatia and the Netherlands, with more countries to come.

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