Late last week Telstra retail chief David Moffatt and a team of his senior executives were given a preview of the new Apple store with Analysts now saying that if the rumour is true the move will hurt both Vodafone and Optus as Telstra have the fastest 3G network in the world. They say that  would have a natural advantage over its two rivals, as its 850MHz Next G national bandwidth is one of the frequencies directly supported by the iPhone. Optus and Vodafone are planning a mix of 2100MHz and 900MHz frequencies for their networks ­ and the 900MHz band is not covered by Apple's first 3G model.

Telstra is reportedly targeting a July 22 launch. Vodafone and Optus will begin selling the iPhone on July 11.

In what may prove to have been a foreshadowing of its entry to the market, Telstra's legal department earlier this month threatened Optus with court action if it continued to imply 3G iPhone users would be able to obtain service right across its networks.