The issue with upload and download speeds of 116 kbps is very odd, in my opinion. The iPhone has a 3G indicator on the screen at these very low speeds and 116 kbps is clearly faster than GPRS, so it hasn't downgraded to 2G. So what exactly does this mean?

I am very impressed with the XT speeds on my iPhone 3GS after buying a SIM card this morning from Telecom. I live in an area of fair-to-limited coverage outside of Dunedin and managed to get a 1000 kbps download speed. Will test again in downtown Dunedin later today.

I'd be interested to see your speed postings, ahmad. The Octagon and university campus are good ideas, but you'll find limited to non-existent coverage in the underground food court of the Meridian Mall. Use the SpeedTest.net app and select the Christchurch server. Not sure how much data the app uses in the test. To be fair, you'll need to switch to airplane mode and off again before testing the vodafone network, otherwise you'll be stuck in the dreaded "116 kbps zone".