T-Mobile will subsidize the iPhone 3G. They just announced to sell the new UMTS 3G iPhone for just 1€, if bought with a two year lasting contract for 89€. With a contract for 29€/month the price for the iPhone will be 169€.

As a loyalty bonus to clients who bought the “old” iPhone, the new iPhone will be offered at a special discount. Exact prices are being worked on currently, said T-Mobile. Moreover the iPhone will be sold not only in T-Com shops or via T-Mobile’s online shop, but thru reseller channels aswell.