Music downloads and social networking are part of Telecom's master plan to appeal to a younger audience of cellphone users with the launch of its new fast XT network yesterday.
Handsets designed specifically to cater for social networkers, along with more transparent data plans, could give New Zealand's largest listed company an edge against its biggest competitor, Vodafone.
With a third network, 2degrees, launching in August, Telecom needs to get into the youth market quickly.
Younger mobile users are not averse to carrying two cellphones - one from each network - to take advantage of any deals.
Also, cheaper rates to texting or calling friends on the same network makes having two phones attractive.
Telecom has reduced the price of texting and calling between networks to try to keep customers locked into its plans.
Latest statistics show that Telecom has about 50% of the mobile market and 40% of the revenue.
With 2.7 million music tracks to choose from on the new XT network and a promise they will download in seconds, Telecom is hoping to expand both its market and revenue shares.
Telecom Mobile general manager Paul Hamburger said the speed and search results of the oneSearch were globally recognised as the best for mobile.
All the major social networking brands will be available on Telecom mobiles, including Facebook, Bebo, Myspace and Twitter.
Some of them feature exclusive content and functions only available to Telecom customers.
Samsung has produced a cellphone for Telecom specifically designed for Bebo.
It has a soft key which allows Bebo to be accessed while someone is talking on the phone.
Message and photographs can be uploaded quickly.
Bebo phone users get free texts between fellow Bebo users.
The Samsung S8300, which is a full touch plus a keypad slider, lets users upload photographs and text within a couple of clicks, to most social network sites.
Samsung telecommunications spokesman Peter Hall said, in an interview, that extensive research had been undertaken to work out the best way of aggregating content on a cellphone.
Instead of designing phones specifically for age groups, the research looked at what people wanted on a cellphone regardless of their age.
The "youth-minded consumer" might be a 66-year-old woman in Invercargill wanting the same functions as a 15-year-old boy in Auckland.
"Age is irrelevant. It is what you want on your phone which is important."
The S8300 had been designed with a "green theme" for environmentally aware users.
It used less battery power.
Telecom has also finalised a deal with NZ Dating to have the site bookmarked on some cellphones.