Telstra and Optus release iPhone 4 prices

The latest battle in the iPhone war is on. The first plans for the new iPhone 4 were announced last night, and while market heavyweight Telstra is attempting to showcase its reliability to gain new customers, rival Optus is continuing with its strategy of delivering cheap prices and higher broadband quotas.

However, both companies have increased their mobile data limits in a move Telsyte research director Foad Fadaghi says is evidence the market is shifting towards an American-style model with “unlimited” plans.

“There are some compelling offers now on hand, and I think it follows very much in line with the trend where telcos are offering consumers more value for their dollar.”

Optus is now offering 1GB of data on its cheapest plan, the $49 cap, while 2GB are included on the $59 and $79 caps. The $89 “unlimited” plan will come with 3GB of mobile data.

Telstra, which traditionally hasn’t seen the iPhone as a major selling point and is wary to hand out mobile data, also upped its previous efforts. The $49 cap will come with 200MB, while the $79 and $99 plans will come with 500MB each.

Telstra’s full range:

Pricing and Tariff information

* Included monthly value can be used for Standard National Voice, SMS and MMS calls to any Australia Network.

Optus’ full range:

Pricing and tariff information:

Consumer Extreme Caps

* Included monthly credit can be used for National Voice and Text.

Apple also announced in a quick statement overnight it will sell the gadget unlocked for $859, with the 3GS model to drop to $719.

Fadaghi says the market is now heading into a situation where telcos will battle over who can offer the most, for less, in order to take a slice of the huge demand for iPhones.

“You’re seeing Optus provide unlimited access to certain apps like Facebook, Twitter, MySpace and so on, and we’re kind of edging towards unlimited access to certain apps. Particularly the ones integrated with a ‘communication’ experience.”

“I think the telcos have a very good experience now with users and their smartphones, and people are starting to see how much data they’re using. What we’re seeing is a better understanding of that, and they are building data products around that.”

However, while Fadaghi says some unlimited plans are well within the realm of possibility, he highlights key differences between the Australian and American telecommunications markets, where he says telcos are imposing caps due to certain network restrictions.

“The reason they’re bringing down the caps in the US is due to network capacity, in order to provide a good service for consumers. While here we have a scenario where networks have more capacity available to them, and they want to use that on getting new customers.”

Optus and Telstra are certainly keen to highlight the differences between their two offerings.

Optus consumer marketing director Austin Bryan said in a statement the deals would provide the best value for money.

“Optus has developed what we believe are the most compelling plans and offers for consumer and business customers in Australia to make the most out of the feature packed new iPhone 4.”

Telstra, however, opted to promote the speed of its Next G network.

“We know our iPhone 4 customers will love the speed and coverage available on the Next G network as they browse the mobile net, update their social networks and send email on the move,” consumer executive director Rebekah O’Flaherty said in a statement.

Both Optus and Telstra will be hosting midnight launch events at selected stores, with Telstra publishing its full list online. Optus will hold midnight events in Sydney, Melbourne, Brisbane and Perth.

But the fight certainly isn’t over, with VHA set to announce prices for the Vodafone and Three brands tomorrow. Three’s prices will most certainly undercut the other telcos as the brand targets a youth-based market.

All Australian iPhone 4 owners will also be entitled to a free case, after Apple said it would distribute “bumpers” to customers in order to address a faulty antenna issue.

Telstra’s iPhone announcement comes just days after it cut fixed-line prices by nearly 50%. However, those price cuts could put Telstra in a bit of a bind, after rival telcos said the move was anticompetitive.

A complaint has been lodged with the Australian Competition and Consumer Commission by rival telcos, including iiNet. The complaints state Telstra is abusing its power as a major player in the wholesale market.