Vodafone pegs back Telecom's 3G lead

Vodafone's general manager of new ventures, Kieren Cooney, (left) talks to Emirates Team New Zealand manager for the America's Cup, Grant Dalton, via video at the 3G unveiling yesterday. Picture / Richard Robinson

Vodafone launched its 3G service covering a third of the population yesterday, matching Telecom's T3G coverage despite its rival's nine-month head start.

It said its network covered 36 per cent of the population in 19 centres throughout New Zealand. That compares with between 35 and 40 per cent for the T3G network Telecom launched in November.

Vodafone hosted a circus-like performance in Auckland to introduce the service, including a live performance from rock band The Feelers.

Chief executive Russell Stanners said the key to success was "making sure that the customer experience lives up to the expectation".

Mobile-phone users paying between $749 and $999 for one of five new handsets can use some of Vodafone's new 3G network services free of charge until October 31.

Local video calling, mobile television, music, sport and entertainment videos, and five music tracks will be provided free of charge.

The ongoing cost of local video calls depends upon the user's plan. The "Motormouth" service will cost 49c a minute. Video calls can also be made internationally to 28 countries for $1.99 a minute.

More than 300,000 music tracks are available to download at $3.50 a track. Although memory cards capable of storing hundreds of songs make for a handy portable music player, the download cost is considerably higher than internet-based providers including CokeTunes at $1.75 and Digirama at $1.69 a track.

Stanners says users are paying for convenience and the ease of downloading to their phone.

Mobile TV channels, including TV3, C4 and SkyNews, will cost $1.50 for 10 minutes or $3.50 a week for unlimited access. Games will cost $7.

Telecom said its second phase network roll-out would take T3G population coverage to 80 per cent by the end of the year.