A QUIRK of timing made thousands of Apple fans across Australia and Asia the world's first proud owners of the new iPhone last Thursday.

While Singaporeans were denied the joy of immediate gadget gratification, they could take comfort in the fact that the much-awaited handset could cost next to nothing upfront when it debuts within the next two months.

This is because Singapore Telecommunications (SingTel), the operator which has been given first dibs at selling the device here, will tie the iPhone 3G to a long-term contract.

This will push down its retail price and in some cases, consumers can even get the handset for free if they commit to selected subscription plans.

"We will announce pricing and availability information at a later date but purchase of the iPhone 3G will come with a subscription plan," a SingTel spokesman confirmed.

Industry observers say Singapore's largest telco will probably take a cue from its regional counterparts in coming up with a tiered pricing structure.

Operators across Asian launchmarkets have already taken the wraps off new mobile deals which allow consumers to get their hands on the phone at varying prices, depending on the plan they pick to accompany the device.

For example, in Australia, the second market in the world to welcome the iPhone after New Zealand, SingTel associate Optus is offering the baseline 8GB model for free when customers sign up for a two-year subscription contract costing A$79 (S$104) a month.

A 16GB version is also available at no cost if users commit to an A$89 monthly fee for 24 months.

Rival Telstra is extending a similar zero-dollar deal for monthly plans above A$100.

Hutchinson Telecom, the only Hong Kong operator given the go-ahead to carry the iPhone 3G so far, will require
customers to part with HK$498 (S$86.43) a month in order to get the unit for free.

"Right now we are seeing operators take advantage of the fervent demand for iPhones in different ways. In markets like Hong Kong, operators are using the iPhone to coax consumers into reasonably-priced data plans, hoping to condition them into using the mobile Internet regularly," said Aloysius Choong, a research manager with analyst firm IDC Asia-Pacific.

"If SingTel is smart about this, they will stack the tiers so that customers gravitate towards the more comprehensivedata plans, such as by offeringthe iPhone at $0."

Besides Australia, Hong Kong and New Zealand, Japan was the only other country in the Asia-Pacific region to be chosen as the 22 launch destinations for Apple's new handset.

The souped-up iPhone 3G, which boasts of faster Web access in addition to supporting satellite navigation and corporate e-mail, will hit a second tranche of 48 markets later this year.

In the region, these will include Singapore, the Philippines, India and Macau.

In Singapore, SingTel started taking reservations for the device last month but it declined to reveal how many orders it has received.

Rivals StarHub and M1 are also expected to sell the iPhone later this year after SingTel's brief head start.

- THE BUSINESS TIMES