China Mobile has asked Apple to remove Wi-Fi and 3G networking from the iPhone for its launch in China, according to Apple's Taiwanese manufacturing partner, Foxconn.
China Mobile is asking for the changes to make the phone less appealing to those who would unlock the phone and use it on its major rival's network: China Unicom.
China Mobile has been in sporadic talks with Apple since the original handset was launched last year. Apple agreed to potential revenue sharing, which got talks moving again in July.
Research companies don't doubt that the changes, along with robust Chinese language support, will help Apple's sales in the country. They estimate that there are 28 million potential customers in China.