China Mobile is reportedly poised to launch a version of the iPhone that will disable 3G and Wi-Fi functionality to dissuade subscribers from using the device on rival networks. According to Cellular News, which cites a story in South China Morning Post and a report from the Daiwa Institute of Research, Taiwan’s Hon Hai Precision Industry – a firm that assembles the iPhone on behalf of Apple – is currently awaiting for the go-ahead to ship the customised device to China Mobile. China Mobile’s decision to disable 3G is seen to be related to its investment in TD-SCDMA, China’s proprietary 3G standard, which is currently unsupported by the iPhone. The report says disabling 3G functionality would make it less appealing to users who might try to unlock the phone for use on a standard WCDMA 3G network such as the one being planned by rival firm China Unicom. China Mobile estimates that there are over 400,000 unlocked Apple iPhones being used on its network, says Cellular News.

China Mobile has reportedly been locked in talks with Apple over the launch of the iPhone for over a year, though hopes have been raised recently that an agreement could be reached following Apple’s decision to drop its revenue share model for the launch of iPhone 3G in July. Meanwhile, international rollout of the iconic device continues unabated. According to Apple’s website the device is scheduled for launch in a further 29 markets soon. TeliaSonera announced this week it would launch the device today via its subsidiaries in Latvia (LMT) and Lithuania (Omnitel).