Another player is entering the mobile phone market.
TelstraClear is offering a mobile phone service of 29 cents a minute national calling and 500 texts per month, at $20 a month plus a free Nokia phone worth almost $500. It's not a 3G phone like the iphone or its competitors, and runs on Telecom's CDMA network, which will eventually be phased out.
Subscribers can also call a mobile or landline in Australia, Britain, Ireland United States and Canada for 40 cents a minute.
But the deal is open only to TelstraClear customers who have a 24 month broadband and landline plan with the company.
The Telecommunications Users Association says it's a sign of real competition in the mobile market.
But with other companies about to enter the market, telecommunications analyst, Rosalee Nelson says right now may not be the best time to get locked in to a long term deal.
She says the move won't pose any real threat to Telecom or Vodafone.
