Apparently Telecom is making noise about selling the iPhone in New Zealand which they think will help boost their GSM network that they are currently building. I hope not because I hate Telecom. If Apple makes deals with Telecom AND Vodafone I think it will be a good thing for New Zealand and Apple.
http://stuff.co.nz/4449431a28.html
I don't think New Zealand is big enough for an AT&T/O2 style lock in contract but at the same time I think that what the iPhone sets out to achieve Vodafone is in a better position than Telecom to provide the correct services.
Vodafone also has the cheapest plans in the OECD while Telecom has the most expensive. Of course Orcon has also made noise about selling the iPhone but that uses the Vodafone network not Telecom's.
If the iPhone gets sold by Telecom then I will admit I will never get an iPhone, at least not until the lockin is up. I'll be more than happy getting an iPod Touch instead to be brutal about it.
Personally I think going to Telecom would be a bad move for Apple but that's just me.