The HTC Dream running Android and the Apple iPhone are both available through Optus in Australia, so it is easy to directly compare their plans and coverage on the same network.
The cheapest plan available with both phones is the $59 per month plan which includes $350 of calls and 500MB of mobile internet data. The rates are all the same (35c flagfall, 40c per 30 seconds call rate, 25c SMS). However the difference is in the cost of the actual phone: the 8GB iPhone is only $3 per month extra on the 24 month contract; whereas the Dream is $15/month on the same plan, making it $288 more expensive over the course of the contract.
The $79 plan makes the iPhone free on the 24 month contract and the Dream still costs $13/month, making it $312. This plan includes “unlimited text” and more included credit and mobile internet data. The most expensive plan ($129/month) gives unlimited talk and text and 3GB Mobile Internet data: the 16GB iPhone is free where the Dream is still $3/month.
I like the idea of an actual keyboard, plus the “open source” nature of Android (although the term “open source” is fairly meaningless these days). There needs to be justification of the extra cost though, but the details on the Internet seem a little thin. I’m currently using a Nokia 5500 Sport on the “yes” 30 plan from 2001, so any new phone will be a change in plan and use! For the moment I’m going to leave it as I’m saving up for the Japan trip.