T-Mobile will sell Apple’s new iPhone for as little as 1 euro ($1.54) for the 8-gigabyte version together with a $106 monthly contract.

Apple is set to reach far more consumers with the launch of the 3G iPhone in 70 countries than it did with the original version a year ago, partly due to having abandoned its insistence that carriers give it a share of call revenue.

Operators such as T-Mobile now have more scope to subsidize the cost of the phone to buyers in return for more lucrative contracts.

There ain’t going to be an iPhone in our immediate family until we can walk into the local T-Mobile store and buy one that matches our current plan.

Oh, yeah. O2 in the UK says the iPhone will be free.