Buy an iPhone from Vodafone, run it on Telecom’s new network
Telecom says it will offer SIM-only activation on its new XT network. That means once your friendly Telecom retailer has activated your SIM card, you’ll be able to pop it into any device –including an iPhone purchased from Vodafone.
Currently, Vodafone New Zealand has a lock on iPhone distribution rights in New Zealand (though interestingly, as the carrier clarifies, no exclusive agency).
Telecom and putative third mobile operator NZ Comms will no doubt do their best to try and persuade Apple to pursue a multiple telco strategy, as it does with the iPhone in Australia. For now, however, Vodafone’s global pull is likely to prevail.
Expect to see many an iPhone running on Telecom’s network regardless.
It goes like this:
Both Telecom and Vodafone are building W-CDMA 3G networks.
Telecom is launched its new network, dubbed XT, on May 13. Vodafone, which already has 500,000 customers using its 3G network, is due to complete its build on May 31.
Power geeks like Lance Wiggs were quick to note that iPhone can operate on the 2100MHz band (that is, one of two bands on Vodafone’s 900MHz/2100MHz network) OR the 850MHz band being used by Telecom for its 3G build. Outside 3G areas, an iPhone can trip-down to 2.5G GPRS speed.
In fact, because Vodafone is using 2100MHz in main centres and 900MHz elsewhere, but Telecom is using 850MHz nationwide, an iPhone can actually hit full tilt in more areas on Telecom XT.
That means you could buy an iPhone from Vodafone without a contract (which bumps the price to $979 for the 8GB model, or $1129 for the 16GB), then run it on Telecom’s new XT network.
I asked Telecom’s head of retail, Alan Gourdie, what his company’s policy was toward connecting a cellphone, such as the iPhone, that had been bought for another operator’s network.
He replied that Telecom’s will allow for SIM-only activation.
That is, your friendly Telecom retailer will activate a Telecom XT SIM card for you, then you can pop it into any device you like. Which could include an iPhone bought from Vodafone.
When I put this to Vodafone’s chief marketing officer Mark Rushworth, he was fatalistic.
“The world is a very big place and people can buy an iPhone wherever they want and run it on whatever network they want,” says Mr Rushworth.
Vodafone currently sells iPhones with SIM cards that are unlocked - a necessary precursor for those who want to flip onto a different network.
It could move to lock SIM cards, but to do so would invite a public backlash, and possibly unwelcome attention from the Commerce Commission. And regardless, there are many shops like those in the Parallel Imported chain who can hook people up with a SIM card unlocker.
Mr Rushworth emphasises that Vodafone still has official bragging rights to the iPhone, and it’s likely to maintain a big lead in iPhone users. Nevertheless, choice is coming, ready or not.
Telecom is pretty smug about this turn of events, and not doing much to hide it (Gen-i boss Chris Quin has been brandishing his iPhone at every opportunity for some months).
Still, not everything is going its way.
The telco has yet to say if any BlackBerries will feature in its XT line-up, for example (Telecom currently does currently have a “worldmode” BlackBerry 8830 aimed at business travellers - many of whom may be surprised that their RIM device won’t run on the new XT network).
Of BlackBerry's recent flagship models, the Bold runs on 850MHz, but the Storm is 2100MHz only.
Mr Gourdie says Telecom will have 19 exclusive models in its XT line up, including the Sony Ericsson W995 and Samsung F480 announced this morning. Nokia’s business-focused E71 smartphone, shared with Vodafone, is another starter.
Many new handsets, on both sides of the fence, will be able to run on the rival telco’s network – making switching - on a practical level – as each as transferring your SIM. It’ll be a street brawl, but it’ll be fun, and great for cellphone buyers.

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Comments and questions19
Chris - well written article but why the hue and cry we are just catching up with the rest of the world, in the UK and Europe you could have Sim swapped for the last 10 years
Granted, but it's still nice to get there.
sim locking is standard around the world, including Europe and Australia. When Vodafone introduced it here (re-introduced it actually) the Commerce Commission had a fit.
Vodafone elaborates on its (now) unlocked SIM card policy in this discussion thread on its forums:
http://forum.vodafone.co.nz/index.php?showtopic=651
The Commerce Commission's nudging not withstanding, there are tons of free tools for SIM card unlocking on the net (or you can get someone, via the likes of Parallel Imported, to do it for you) so it's easy to see why Vodafone NZ did not persist with locking.
One phone that Telecom users cant swap networks with is Vodafone's new tough handset the Sonim XP3. So for now if you need the world's toughest mobile phone then Vodafone is your best bet. How tough is it? see http://www.youtube.com/watch?v=PqRs1TxZRvg
so now all we need to see is XT's pricing plans for devices like the iPhone. make them more competitive than vodafone and i'll bring my business along for the ride.
just a couple of handsets... sure, there's more to come. There always is with Telecom. But where are the data cards? where are the laptops? where are the data plans? where are the roaming rates? where are the speeds? how much will we pay? will pre-paid be included or even allowed to roam?
show us some detail, Telecom.
That's why they have a "Launch Date" dolt! ON that day they 'launch' the new product and show you whet it's got and how much it costs!
Clearly, your understanding of commerce is equal to the Justice Ministry's understanding of equal treatment for all under the law!
People its still telecom .... WHO would want to go back there, I had such a BAD experience, a new network wont get me to change!!!
Just keep moaning it will be your loss, trust me.
good news - the service i have with my blackberry storm is absolutely appauling - as a spender of over a grand a month, and the constant dropping of calls mid conversation might see me get an IPhone and go back to Telecom
No need to spend $1000/month, for goodness sake, Telecom offer an unlimited calling/texting plan for $399+ GST/month.
If you're interested in finding how to get unlimited calling for around $100/month let me know by email david.hillary@gmail.com
Prepaid will be available on the new network and will work for roaming to a select number of countries at launch, and more afterwards. Limitations will apply to prepaid roaming, and of course is not ideal for most people.
Prepaid will also have prepaid mobile broadband, something which Australia has had for a while now. Plans are still to be announced to staff, and probably won't be announced to the public until a few days before the 13th... come on, this is commercially sensitive info - Voda and NZ Comms could easily match or copy the plans and steal the thunder
Telecom has revealed some of it XT range - including phones from Samsung, Sony-Ericsson and Nokia.
If it provided greater clarity on its BlackBerry, iPhone and netbook situation, it could sign up more corporate XT customers now - and it has been trying to tie up as many as possible ahead of the launch date, which I would characterise as the day the service is activated.
I'm not sure just how much "news" there is in this piece ... yep, you can buy an iPhone from Vodafone without a contract, at full retail price, pop in an XT simcard and run it on Telecom's new XT network.
The only "news" here is that Vodafone sells unlocked handsets. That's been the case for a while now, so I'm not sure just what the big story is here.
We may have unlocked sims in NZ, but the manufacturer can lock their devices to a specific operator / SIMs, as they do in Japan.
Chris, the article still has 950Mhz band reference for Vodafone.
Regarding switching networks. Whilst your article indicate iPhone can be switched between networks quite easily, which is correct, but it won't be the same with other devices. Take the Nokia E71 for example, it comes in different 3G tri-band configurations. The XT version will likely to have 850/1900/2100 tri-band 3G, where as the Voda version is 900/1900/2100 configuration (1800/1900Mhz band is used in North America). Therefore moving the E71 between networks will give users less coverage. This issue won't be resolved until we have devices that supports quad-band 3G.
The very reason I got the iPhone 3G. Can't wait till XT is launched.
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