The company is the sole German retailer for the iPhone, and the offer comes ahead of the expected launch of the high-speed, third-generation iPhone this summer. T-Mobile, a unit of former German telecoms monopoly Deutsche Telekom, has also been heavily criticized in recent months for offering service plans widely considered inferior to those available in Britain, France and the United States.
The low-end iPhone was formerly priced at €399 when paired with a two-year T-Mobile contract. Customers will only get the discounted iPhone price if they choose the most expensive "Complete XL" service plan at €89 per month, though. Those who want cheaper plans will have to pay an additional €50 with each plan reduction.
T-Mobile has also launched a new "Complete S" service plan of €29, whereby the iPhone will cost €249, but without a flat rate for internet use.
The 16 GB iPhone will still cost a hefty €499 with a minimum 2-year, €49 per month service plan.