Telstra has cut pricing on its wireless mobile Internet connection plans and introduced the country’s first timed usage subscription in response to what it calls competitive pressure.

The announcement came late yesterday after wireless broadband network operator Unwired announced it would enter the Melbourne. Melbourne is only the second city (following Sydney) to get access to the fledgling network operator’s high-speed service.

The new plans start with an entry level 10 hours access at 512Kbps for just $29.95 per month. This compares to the previous entry level of 256Kbps for 200MB of downloads priced at $69.95. That plans now costs just $49.95.

In addition to the lower usage costs, BigPond is flexing its marketing muscle offering new customers up to 12 months half-priced access and $129 off the price of the PC card required to access the service. The card normally retails for $299.

The new pricing levels apply only to the full mobile service using a PC card. The desktop modem plans remain unchanged.

Telstra BigPond Plans are now as follows.

• Speed: 512/64 Kbps, Usage: 10 hours, Price: $29.95
• Speed: 512/64 Kbps, Usage: 20 hours, Price: $49.95
• Speed: 256/64 Kbps, Usage: 200MB, Price: $49.95 (previously $69.95)
• Speed: 256/64 Kbps, Usage: 1GB, Price: $79.95 (previously $99.95)
• Speed: 512/64 Kbps, Usage: 400MB, Price: $79.95 (previously $99.95)
• Speed: 512/64 Kbps, Usage: 1GB, Price: $109.95 (previously $129.95)

Excess usage on time based plans, 80c for 5 minutes. Excess usage on MB usage plans 30c