Following on from announcements by Optus and Vodafone and Three begging for customers Australia's other telco, Telstra has announced, somewhat surprisingly that they'll be selling the iPhone from 11 July.

Unlike the other carriers, Telstra has announced pricing.

8 GB - $279 up front and $30 per month OR $0 and $80 per month
16 GB - $399 up front and $30 per month OR $0 and $100 per month

In addition, Telstra's customers will have free access to Telstra's extensive WiFi hotspot network that covers significant parts of Australia's capital cities with access from every McDonalds restaurant, airport and other locations.

Telstra will NOT be selling unlocked iPhones and customers will be bound to their two-yar contracts. In contrast, Optus has said that they'll sell the iPhone unlocked.

One thing's certain - Telstra's announcement will setthe cat amongst the pigeons. While Optus and Vodafone are being coy about pricing and other details, Telstra has thrown down the gauntlet. The good news is that Optus and Vodafone will need to up the ante to compete.

My feeling is that Vodafone will respond with two year contracts with $0 up front and $49 per month with a data allowance of about 2GB. Optus will probably come in reasonably close to Telstra with perhaps more generous allowances within pricing caps.

The wild caard in all of this is Three. Despite being the last to come to an arrangement (at least one they're prepared to disclose) they have a reputation for delivering great value and not being scared to undercut the opposition. Already, they've announced more generous call and data allowances for current customers on capped plans.

 iPhone • Telstra