Both telcos are banking on internet-enabled USB keys to connect subscribers to the web on their 3G/HSPA networks.

Vodafone claims it can provide up to 7.2Mbps in connection speeds compared with Optus’s maximum 3.6Mbps for mobile broadband.

Now, Australian consumers have more choice than ever, with the five major telecommunications players jostling for mobile broadband supremacy in a market that’s tipped to close in on $2 billion in four years.

Vodafone will offer various plans for existing customers and non-subscribers over a 24-month period.

For 1GB, Vodafone users with a voice plan will pay $34.95, including $5 monthly for the USB key.

It will cost $29.95 for those without a contract.

Vodafone will charge 10 cents per megabyte, or $100 a gigabyte, for additional data usage.

Optus already has a post-paid mobile broadband product but is hoping the new prepaid plan will attract both local and foreign wireless broadband users.