2degrees ready to woo rival's top clients

New mobile operator 2degrees is set to woo Vodafone's first wave of iPhone customers as they commit to another term with the mobile operator.

An estimated 30,000 iPhone customers signed two-year contracts with Vodafone in the first six weeks after it launched in July 2008.

Industry insiders have described it as the ticking timebomb in Vodafone's closet.

Larrie Moore, chief sales and marketing officer at 2degrees, said the high spending iPhone customers would be hotly contested.

"The iPhone customers have some of the biggest bills in the market when it comes to mobile. They'll be highly coveted by the likes of Vodafone and they are very attractive customers to anybody else in the market including ourselves."

He claims 2degrees can cut 20 per cent off Vodafone's $80-a-month iPhone plan, which includes 120 minutes calling, 600 texts and 250 megabytes of data, based on the current pricing from 2degrees.

"What we're saying to people is whatever you do, don't sign up to a contract because I don't think New Zealand has so far seen the value that other markets get around the world," said Moore.

Also set to launch in New Zealand this July is the iPad, Apple's latest device connected to the internet over wireless broadband.

Vodafone Australia, where the iPad became available last week, is offering unlimited data for $49.95.

2degrees is coy on any details around the launch of its 3G network - it runs a 2G network which will support an iPhone, albeit at slower speeds - but said most staff are now connected to the faster network.

The arrival of the 3G network will also see a "device refresh", said Moore, with the line-up set to be boosted by high-end phones and data sticks.

Last week 2degrees changed pricing on its data from 50c a megabyte casual rate to offering 50 megabytes for $6.

Prepaid users on Vodafone pay $10 for 100 megabytes a month and Telecom's prepay XT customers can get 20 megabytes a month for $6 or a casual rate of $1 a day for up to 10 megabytes.

Sending or receiving 30 emails, five with attachments, and viewing 10 webpages a day would use up around 50 megabytes of data in a month.

Moore promised the company "would not sit on its hands" with so many customers coming into the market.

"Things like this do create competition and I don't want to pre-empt what we are about to do but everybody knows what happens when there is competition. Prices change and services change," Moore said.

Part of the network and device upgrade will be 2degrees creating its own retail footprint.