Vodafone has initiated a loud bid yet to steal disgruntled XT customers from Telecom - it is offering to pay their termination fees for anyone who breaks their XT contract.. However, some are labeling Vodafone's offer as a cheap marketing strategy.

"When Telecom charges you for breaking your contract, we'll pay your money back", Vodafone Products, Pricing and Services General Manager Kursten Shalfoon told NBR on Friday.

Ross Johnstone is a Telecom customer, but he reveals that the XT network is a joke; hence people as its customers would be better off with one of his old telephone boxes.

"People thought I was going to wire [an old telephone box] up and they said 'good on you, the other system's crap'", he adds.

Vodafone has been behind Telecom in the south in terms of their business sphere; however is gaining ground - flying more staff to Christchurch today to help meet demand from disgruntled XT customers.

The Vodafone offer does have catches; it comes as credit, not cash, and customers have to sign a two-year contract.

Individual customers and SMEs wanting to break from XT (or a Telecom CDMA plan or any mobile phone contract), are required to send Vodafone a copy of any termination fee charged by Telecom.