Apple will allow sales of an unlocked iPhone in Italy and won't require a mandatory two-year contract, reports InformationWeek, quoting Italian newspaper La Repubblica.
The story says Telecom Italia Mobile will sell the 3G iphone, due later this year, as Apple's exclusive partner in sales of the gadget for the first six months. Prices will be higher there than in other European countries.
It notes European carriers recently dropped prices of iPhones, apparently to reduce inventories before the 3G model comes out. France also offers an unlocked version of the phone and Germany sells a standalone, but more expensive, version because rivals went to court citing antitrust issues with Apple's iPhone marketing plan.