Telcos fight for customers with iPhone 4 plans

AUSTRALIA'S telcos determined to give the iPhone 4 a good reception — even if it's got reception issues.

Apple's new iPhone 4, which will be released in Australia on Friday.

AUSTRALIA'S major telcos appear determined to give Apple's iPhone 4 an exceptional reception when it arrives in the country this Friday, even if the phone itself has reception issues.

Telstra, Optus, Vodafone and 3 Mobile yesterday launched a raft of new plans for the iPhone 4 in a fierce price war for consumers.

All four companies are offering the $859 phone for free on two-year contracts, and the new plans also include significant internet allowances.

As with the launch of the first iPhone, Optus's plans appear to be the most generous. It's offering the smaller, 16GB iPhone 4 for free on a $59 cap over 24 months.

Optus is also offering the largest, 32GB model on its $79 cap, in addition to $800 in calls and 2GB in downloads.

Optus consumer marketing director Austin Bryan said the $59 plan with free phone was the company's "best value iPhone offer ever" and came in addition to network upgrades to win back old iPhone customers.

But Telstra also launched new plans for Apple's new smartphone yesterday and will give customers a free 16GB iPhone 4 on its $79 cap or a free 32GB iPhone 4 on its $99 plan over two years.

Both plans come with 500MB of mobile data and consumer executive director Rebekah O'Flaherty cited Telstra's "largest and fastest national network" as a selling point.

Vodafone and 3 Mobile also joined the iPhone 4 price race late yesterday, offering a free 16GB iPhone 4 on a $69 plan and the 32GB model on the $79 plan.

All phone companies will lock new iPhone users into two-year contracts, however, unless users buy the iPhone 4 directly from Apple for $859 or $999.

Keen iPhone 4 buyers will be able to participate in midnight launches this Thursday at selected Telstra and Optus stores, though an Apple spokeswoman says its stores would not join in the late-night launch, instead opening at 8am on Friday.

Apple's fourth smartphone will offer users a 5-megapixel camera, high-definition video recording, improved screen, faster processor and new form when it arrives on Friday.

However the phone also comes with a hardware fault that makes its reception disappear when held in a user's left hand. New buyers will receive a free case to fix this issue.