Telefonica Czech AS (BAATELEC) has so far failed to reach a deal with Apple Inc. (AAPL) on offering the U.S. company's iPhone 4S in the Czech market, a company spokesman said Thursday.

"We haven't agreed with Apple on mutually acceptable conditions yet," Hany Farghali told Dow Jones Newswires in a telephone interview.

Telefonica Czech is still continuing to hold talks with Apple on adding the new iPhone model to its portfolio, Farghali said, without elaborating.

Czech units of T-Mobile, owned by Deutsche Telekom AG (DTE.XE), and Vodafone Group PLC (VOD)--both main rivals of Telefonica Czech--have said they are planning to launch the iPhone 4S on Friday.

Telefonica Czech, majority owned by Spain's Telefonica SA (TEF), is unlikely to add the iPhone 4S model to its pre-holiday offering, said a person familiar with the local mobile market who asked to remain anonymous.

Instead, the company will focus on already much higher volume sales of smart phones based on rival operating systems, including Google Inc.'s (GOOG) Android and Nokia Corp.'s (NOK) Symbian.

"iPhone sales in general are pretty small on the local market and well below Android models and even still Nokia phones," the person said.

-By Leos Rousek, Dow Jones Newswires; +420 222 315 290; leos.rousek@dowjones.com

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