Can a vodafone iPhone 3G plan be used in any other phone in N.Z?

Is it possible for me to upgrade to an iPhone 3G 1GB plan and then use that in my 1st generation iPhone in N.Z

Yes, you can.Provided the iPhone is not locked with any different network. If it is, then you need to unlock. I suggest you can approach Mobileunlocksolutions.com and specify the country,locked network of iPhone.Based on the availability you can get the permanent unlock service along with free instructions.
 
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