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Jul 07

The Guardian is reporting that Vodafone has dropped out of negotiations with Apple over the iPhone because of “extortionate revenue share demands”.

Apple is understood to be demanding that its European mobile phone partners hand over a significant proportion of revenues generated by the iPhone and restrict the content that users can access.

The iPhone is expected to reach European shores by Christmas time and is rumored to be 3G capable. Other networks rumored to be carrying the iPhone include T-Mobile in Germany, Claro in Italy and O2 in the UK.

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