I have an iPhone 3G running on the new Telecom XT network, and it works fine. I didn't have to do anything special either - I even ported my number from vodafone (now I have ported both ways, porting has never caused me any problems).
I got my iPhone from vodafone, which is what NBR had to do to make it work too. You can buy an 8G one outright from vodafone.co.nz for $979.
I signed up as a new Telecom customer, on an open term (!) plan, and they gave me the sim for free even (I signed a bit of paper saying it was free and didn't hand over any money at the shop, so I'm not expecting anything nasty on my first bill). I just left the sim in the phone until it activated (it took about 15 minutes longer than they said it would), then changed the APN setting to internet.telecom.co.nz to make my 3G data work.
The telecom site has an IMEI checker that you can use to see if your phone will work on the XT network. It says iPhone 3Gs don't work, but I happen to know from a Telecom insider that this is because the webservice that provides such information is providing crap information about the iPhone at the moment. In any event, you can try it out with a Telecom sim in-store if you really need to know.
So far, I'm loving the network, the phone and the plan. Is it possible that Telecom have actually become cool?
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