Using USA iPhone 4s in New Zealand

1)  I know from reading a travel book the standard US iPhone will not just work in New Zealand.  We recently upgraded iPhone to 5s  and have a old 4s that will be unlocked from ATT, no current service, we don't mind taking it on a trip, would also be handy as a camera for my wife.  There's no point in our taking our new 5S to New Zealand but I don't know much about iPhones.  Is it possible to buy a chip to make the 4s usable in New Zealand?  We don't plan on calling home or anything, but a phone can be handy for general use in travel.  Is it worth it or is there some better alternative for phone service?  I know in the US it is becoming very difficult to find a payphone anywhere, and here for a 3 week trip I would just recommend somebody buy a $30 no-contract phone with 60 minute/90 day service.
2) The 4s currently runs iOS6-something.  The phone is an 8GB model so I am highly reluctant to upgrade it to iOS8 because this will only leave 3GB for 3 weeks of photos for her.  Just leave it?

If you get the device unlocked by AT&T, you should be able to use a local SIM in the device. The same would be so for the 5s, just that it would not support  the LTE bands in New Zealand. Unfortunately, to complete the unlock on the device requires a restore as new in iTunes, which will load iOS 8.1.2. Your call on that one.

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