Apple is reportedly in talks with Telstra about providing the iPhone in Australia. Sol Trujillo, Telstra CEO, confirmed that Apple and Telstra had discussed the move, but that nothing had been confirmed.
"We have been testing the iPhone as we would any device that comes into the country."
Marketwatch claims that Apple would have to make a special 850MHz version to work on the Telstra "Next G" Network, but I'm going to call B.S. on it: the Next G network is an HSDPA network; I think it's more likely that Apple would provide their standard EDGE iPhone before they developed a 3G iPhone specifically for Australia. And I'm guessing that any HSDPA towers that Telstra puts up will include the slower varied 2G data networks: GPRS and EDGE.