KEY POINTS:
Running Apple's new iPhone could in the future cost New Zealand users hundreds of dollars a month. And it could be 10 years before the mobile broadband needed to run the phones is affordable.
Though the first generation iPhone is not 3G (mobile broadband) compatible, future versions would
be, and the new phones should be a wake-up call to Vodafone and Telecom and their "outrageously high" charges, Sydney-based telecommunications specialist Paul Budde said yesterday
He predicted it could be a decade before the mobile broadband required to run future iPhones to their full capacity was cheap enough for the most New Zealanders.
Launched to great hype this week, the iPhone, which lets users surf the net, email, play music and watch TV shows and films, is expected to cost up to $900 when it gets here in 2008.
IDC telecommunications analyst Darian Bird said phones such as Apple's were the thing of the future but agreed broadband access costs would have to come down.
He felt price and size could be problems even for the first-generation model.
"The device is larger than an iPod Nano, larger than your average phone and obviously smaller than a computer. People may not want it as their primary phone or internet access device."
Keeping the mobile powered could be a problem.
"Once you get a device trying to do everything, you do run into battery issues."
Telecom public affairs manager John Goulter said his company was not talking about the new phone, or the implications of its arrival in the local mobile phone market, but would be watching its progress.
"We keep a close eye on all developments, from all providers, throughout the world."
Vodafone communications manager Paul Brislen predicted mobile internet access would be considerably freed up by the time 3G compatible iPhones arrived.
He said the mobile broadband market would most likely be a "completely different kettle of fish" within 12 months following legislation unbundling the local loop.
In countries such as the United States and Scandinavia, where competition had forced mobile providers to drop the cost of their voice calls, competing companies had moved to offer mobile broadband at equally low prices.
But Mr Budde said the Government here had only just moved to free up fixed-line access after "more than five years" talking about it.
That meant any moves to loosen providers' control over mobile broadband prices might not bear fruit until about 2015.
The first-generation iPhone was not compatible with Telecom NZ's CDMA network but future models likely would be, which meant Telecom should also look to free up broadband access.
In a blow to Apple yesterday, Cisco Systems said it was suing for infringing its "iPhone" trademark, which the networking giant says it has owned since 2000. Cisco is seeking an injunction to prevent Apple from using the iPhone name.
