Telstra has launched a tablet PC that it hopes would compete with the popular iPad line from Apple. The T-Touch Tab, which is available for $299, is twice as cheap as the most affordable iPad model.

The device boasts features such as a 17cm touch screen, the ability to make phone calls and send SMS and mobile Internet access. The gadget, which targets budget-conscious consumers, is based on the Google Android operating system.

The device's display is about three times as large as a smartphone screen. The T-Touch Tab also has Foxtel, which allows mobile access to video clips, TV shows and movies.

The device also has front and rear facing cameras. The feature provides support for video calls and lets users upload pictures to social networking Websites like Facebook.

The T-Touch Tab is the latest digital device released by the telecommunication company. The device comes bundled with a T-Box digital set-top box and a T-Hub touchscreen home phone.

Tablet PCs have become popular among Australians since the release of the iPad. About 188,000 iPads have been sold in the country. A survey from Nielsen suggested that a quarter of online users in the country are considering buying a tablet PC over the next year.