Telecom hung up over iPhone

Fairfax Media

STILL WAITING: Why has Telecom not secured a deal with Apple to sell the iconic iPhone five months after the launch of its XT network?

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Why has Telecom not secured a deal with Apple to sell the iconic iPhone five months after the launch of its XT network?

Before the May launch of the new network, Telecom's retail head Alan Gourdie said it was in "deep discussions'' with Apple over the iPhone.

They must have been deep because nothing has emerged so far.

Telecom could not support the use of the iPhone on its old network, but its new 3G network can carry a wide range of smart phones.

Technology commentator Colin Jackson says the fact Apple has not authorised Telecom to sell the iPhone does not really affect consumers.

It is relatively easy to use an iPhone on the Telecom network, he says. He has found  the iPhone has better speed and coverage on Telecom's network, compared to Vodafone.

But Telecom's brand is damaged by its failure to become an official carrier of the iPhone, he says.

Telecom declined to comment.

Other observers said revenue from mobile data is becoming an increasingly important profit stream for telcos as voice and text fees fall.

Jackson says the latest version of the iPhone, called the iPhone 3GS and released in June, cannot be used as a modem to connect to a laptop if used on an unauthorised network.  "Telecom has a moral obligation to provide a port on the phones, given that it effectively encouraged us all on to their network,'' he says. ''They need to find a solution quickly.''

In July, Telecom lured users of the iPhone across to its network with a $600 account credit and 240 megabytes of free data for two years. Industry observers suggest this move buried any hope of a deal between Telecom and Apple, which views users of the iPhone as its own customers rather than the telco's and would not have appreciated the telco's marketing efforts.  

Apple declined to comment, except to say its relationship is with Vodafone, the only official carrier of the iPhone in New Zealand.

Vodafone denies speculation it has an exclusive deal with Apple to sell the iPhone. The denial stacks up when you consider Apple has struck non-exclusive deals  overseas.

In Australia, all of the 3G mobile network operators are authorised to sell the iPhone.

Technology analyst IDC says between April and June of this year just under 19,000 iPhones were shipped to New Zealand, 6 per cent fewer than in the first quarter because some customers delayed purchases until the iPhone 3GS came out in July.

 Some 100,000 smart phones were shipped here in the second quarter,  up 16 per cent quarter-on-quarter.

- © Fairfax NZ News