Telecom Corp of New Zealand Ltd. (NZT, TEL.NZ) will offer Apple Inc.'s (AAPL) iPhone starting Friday, the country's largest telecommunications company by sales and market share said Tuesday.

"We are delighted to bring the innovative iPhone 4S to Telecom New Zealand customers," said Telecom's retail chief executive, Alan Gourdie. "With the capability and performance of Telecom's mobile services, customers will enjoy using the many new features of iPhone 4S on our network."

In addition to the iPhone 4S, the company will sell the iPhone 4 and 3GS.

The New Zealand unit of Vodafone Group PLC (VOD, VODPF, VOD.LN) had been the only provider of the iPhone and customers wishing to operate on Telecom's network had to buy the handset outright from Apple and then sign up with Telecom. Vodafone will continue to sell the iPhone.

This move to sell the popular Apple smartphone comes just three weeks before Telecom is set to spin off its infrastructure business Chorus and become primarily a retail business.

-By Lucy Craymer, Dow Jones Newswires; 64-4-471-5990; lucy.craymer@dowjones.com

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