Telecom (NZX: TEL) has announced an early launch of its new 3G mobile network with services available to customers from 6.30pm on May 13. The telco had been scheduled to stage "T-Day" in June. The early launch means the telco will go live before Vodafone is scheduled to finish its own 3G network on May 31.

The first hints of an early launch came last Tuesday, as NBR reported comments from Gen-i boss Chris Quin that Telecom might hit the go button early.

On Wednesday, a teaser campaign began for the new XT network, with Telecom (rather than putative third mobile operator NZ Communications) soon revealed as the carrier behind the commercial.

NZ Comms has yet to announce a launch date but, as first pointed out by NBR, its help-wanted call centre ads have specified that customer-facing staff must be on deck by May 11. Some NZ Comms staff have been saying early June - a date now gazumped by Telecom.

The early XT launch also underlines the business challenge facing Telecom's mobile virtual network operators, TelstraClear and Digital Island, who are both shut out of the new network for upwards of 18 months (read: No T-Day for Telecom's B-list partners).

Matching Vodafone's 3G coverage
Telecom chief executive Paul Reynolds says XT will cover "97% of places where Kiwis live and work” from its launch date. Vodafone - whose 3G network is already operating in most centres - is aiming for the same 97% coverage mark by May 31.

Dr Reynolds said the XT Mobile Network will be faster in more places. Telecom staff have said XT will have a theoretical maximum download speed of up to 14Mbit/s thanks to HSPA+ technology. Vodafone, which is using HSPA at this point and claiming a theoretical maximum of 7Mbit/s, says there are no phones that support HSPA+ at present. It will upgrade when there are. Chief executive Russell Stanners told NBR that speed comparisons were pointless until both networks were live.

Better call clarity, connections
Telecom says its new network will also offer greater call clarity, and a superior ability to hold a signal if you're in a moving car or otherwise being bounced between cellsites.

Hotter handsets
A key problem with Telecom's existing CDMA network is that most phone makers no longer develop models based around that technology.

Its new, $574 million network will let it catch up with Vodafone in the handset market, giving it access to a broad range of SIM-card packing phones - providing it can wangle NZ distribution deals.

To wit, Telecom today revealed a world-first exclusive handset, the Sony Ericsson W995 (right), which features an 8.1 megapixel camera, Walkman music player and Outlook email support. The W995 will be available to Telecom customers "before any others in the world" from July.

Another handset confirmed today was the Samsung F480 touchscreen (below) exclusive to Telecom and available from launch day.

Based on comments to NBR, Telecom will also bundle netbook deals similar to Vodafone's recently announced zero dollars up-front Dell Inspiron 9 package - part of a stream of recent moves by the carrier to sweeten its mobile data deals ahead of T-Day.

Still to be confirmed: Telecom's XT BlackBerry line-up, or how liberal it will be toward customers who buy an unlocked iPhone from Vodafone, then want to run it on Telecom's XT network.

The telco has also yet to announce any XT plans, or how they will be priced.

Plugging the roaming gap
“Telecom will also now provide New Zealand’s premium overseas roaming service with seamless international roaming to more than 206 destinations for voice calling and SMS and at least 110 destinations for mobile data,” Dr Reynolds says.

Speaking to NBR last week, Gen-i's Chris Quin said "we've been killed on roaming".

Not having a 3G network has hurt Telecom's market share among globe-trotting business customers.

But according to ABN Amro analyst Geoff Zame, it has also cost Telecom in the $100 million domestic roaming market, where Vodafone holds a 90% share.

Roaming reach
Telecom head of retail Alan Gourdie tells NBR that customers on his company's new network will be able to voice roam to 206 countries (compared to 156 on Vodafone's 3G network and 146 on Telecom's current CDMA network) and data roam to 110.

By roaming, Mr Gourdie says he means that you're using your own phone, and your own SIM card.

The head of retail is particularly keen on the Australian story.

Whereas Telstra's abandonment of CDMA last year left Telecom in a whole, forced to loan phones to travelling customers, or cajole them into upgrading to dual mode "Worldmode models" (which will not work on XT), Telstra and Telecom's networks will be back in perfect alignment in 16 days' time.

Vodafone chief marketing officer Mark Rushworth responds that "there are more than 206 countries in the world" and pledges that Vodafone will maintain its lead.

Telecom says the exclusive alliance it signed with Bebo last month is an example of the type of content deals ahead. The Bebo partnerhsip gives Telecom customers the ability to update their Bebo profiles with photos and video and interact with friends via their mobile.

To support the launch of its new mobile service, Telecom is rolling out a new design and fit-out for retail stores that includes" a slick new layout, interactive displays and wireless hotspots. Six stores will be open with the new design by launch day with 12 further stores to be refitted over the coming months.

“We are ramping up across all our retail stores, call centres, and client management teams to ensure we are ready to manage the expected high demand once we launch the XT Mobile Network, Dr Reynolds says.

Customers who wish to move to the new network won’t need to change their mobile number, and Telecom and Gen-i will have a range of offers to make it easy for both new and existing customers to switch to Telecom’s new mobile network.

Telecom’s current CDMA network will continue to operate in parallel with XT for at least two years.