Telecom, Vodafone in iPhone customer scrap

Telecom is offering incentives for iPhone 3GS buyers to connect to its XT mobile network.

Telecom and Vodafone are entering a scrap over iPhone.

Telecom this morning released a statement offering buyers of the third-generation iPhone, the 3GS, a $600 account credit and 240MB of free data for two years if they connect to its new XT mobile data network.

The phone - which retails from $1149 - would need to be purchased outright and then connected on a $79.95 per month One Rate 180 plan.

Director of Mobile Paul Hamburger says that XT customers can buy a SIM-only XT connection, enabling them to use devices like the iPhone.

Telecom's statement said that Apple's online store can sell the much-lauded mobile directly to customers who would "no longer have to deal with other mobile providers for their phone - they can order it directly and bring it on to the XT network."

But Vodafone spokesman Paul Brislen slammed the plan, saying that Vodafone data packages represent better value.

"We're already offering a lot more value," he told nzherald.co.nz this morning. "Sure, there aren't as many call minutes, but it's an iPhone - it's the data that people want."

Brislen said that Vodafone already offers 3GB of mobile data and bundles it with 1000 free pxt messages and will continue to do so for three months.

He claims that Telecom's 240MB of data would be quickly used on an iPhone and going over that level would cost users 50cents per megabyte.

"By time you've used three gigs of data that's an extra $1375 slapped on top of your bill," he said. "That would certainly wake a few people up."

Telecom says it now has 100,000 customers on the new network after just five weeks of operation.

- NZ HERALD STAFF