Also you'll have better 3g coverage outside main centres on XT than Vodafone.

Much of Vodafones coverage outside major centers is on 900mhz, a frequency that both the 3G and 3GS iphones DO NOT suport.

The iphone supports 850mhz 3G and that is the band that XT is on.

If you need 3g coverage on Vodafone in the whops I suggest the HTC Magic, the iPhone is not the phone for you.

For the reasons noted by Scott above.

Also note that if you pop in an XT sim card, you'll have to download some third-party software to take advantage of the iPhone tethering (its newfound ability, with OS 3.0, to work as a modem). Those who want to execute that hack will find links on sites like Geekzone, but not everybody's going to feel comfortable with it.
http://www.nbr.co.nz/opinion/chris-keall/iphone-xt-stumbles-with-tethering

I think it's a good idea for any handset - from Apple, Nokia or whoever - to be available through multiple carriers.

If you're a customer, that's the kind of arrangement that gets you the best pricing.

New Zealand's really backward in this respect, so it's worth highlighting, and highlighting again, any DIY way to introduce more choice.

I hope it moves things along, and encourages Apple to appoint two, or three, telcos to carry its handset.

Then I'll stop mentioning it, and we can both be happy.

Actually NZ is far better of then most Western European countries and the US in the way handsets are sold. Basically all handsets are sold unlocked (they may have been locked in the past and Vodafone tried again briefly last year but it didn't last long). They are also sold without a SIM. Yes the handsets are generally theoretically sold by the carrier, perhaps with some custom settings or firmware but really this isn't a big deal in most cases.

The far bigger issue is that we haven't had compatible networks so even if the phones are unlocked, you can't take them between networks. Even now the situation isn't that much better. Sure both Telecom and Vodafone have a UMTS network, but one is 850mhz with a few 2100mhz sites, the other one is 2100mhz in the urban areas with the rest 900mhz. And there are few 850mhz, 900mhz, 2100mhz triband UMTS (or perhaps quad 850,900,1900,2100) phones. Most are either 850,1900,2100 (e.g. the iPhone) or 900,1900,2100 (sometimes a vendor will have the same model with different frequencies). Some are even only 2100. This means there's still far less ability to move between networks, at least if you want to have complete 3G in both (which if you're paid NZ$500+ for a phone you probably would).

Things will be somewhat different with the launch of 2 degrees who will have a GSM 900mhz network and a 2100mhz UMTS network eventually. They will be basically similar to Vodafone and so moving between Vf and 2 degrees won't be an issue. (Between both and Telecom will remain an issue)

But still back to the main point, in terms of how our handsets are sold, we're much better off then the US or much of Western Europe where handsets are frequently locked and you have to pay to unlock them (or perhaps stay with the carrier for a certain length of time). And worse they may even be exclusive.

The only other problem, is that due to our small population, we never have as many available as elsewhere, many are never officially available here. And while the parallel importers may bring them, most of them are notorious for their crap service. But on that point, I'd personally prefer if we stay the way we are now and carriers sell different phones. Who wants 3 carriers offering exactly the same phones? I'd much rather have a wider choice, even if it means I have to buy a handset sold by 'Vodafone' and use it on 2 degrees or whatever. Even if mobiles start to be sold by the manufacturers (which is common in Asia but I think is unlikely here), I don't think things will be better.

P.S. Despite what some commentators claim, Telecom does not have a GSM network and almost definitely never will. They only have a (3G) UMTS network.

Giles, that comparison is faulty. You cannot compare the handset outright price with a subsidized price. Our prices are actually very similar to the US market, with most Iphone users picking up a new phone in NZ for around $500 on a plan subsidy.

Vodafone has admitted to my work colleague who got a iPhone replacement that they have network locked the iPhones now

Vodafone does not lock handsets and the iPhone is not locked to the Vodafone network.

Vodafone does not lock the iPhone to its network.

Cheers

Paul Brislen
Vodafone external communications manager