T-Mobile, the mobile arm of Deutsche Telekom, apparently has clinched a deal to bring the iPhone to Germany, according to a reuters news report citing the Rheinische Post.
This is expected to be an exclusive deal for T-Mobile. T-Mobile will require a contract and sell the iPhone for around 450 euros ($612) starting Nov 1. I would suspect that this is on the 3G (UMTS) network as european operators already have well built out 3G networks. In the U.S, AT&T (Cingular) has an 5-year exclusive deal with Apple to sell the iPhone, but on a 2.5G network
In Europe, Vodafone, Deutsche Telekom, France Telecom, and Telefonica are considered contenders for an iPhone partnership.