Telstra said it plans to build as many as 2,000 new hotspots over the next two years: It will initially build 15 of those using public pay phones as a trial.
Telstra is trialing a wide range of technologies so it's not clear that the pay phone idea will ultimately be rolled out on a wider basis. TechDirt suggests that Telstra might want to follow Verizon's lead and offer free access to hotspots for DSL customers. But it sounds like Telstra is more interested in using Wi-Fi as part of a larger wireless strategy for blanket coverage. The Wi-Fi access might be bundled into Telstra's mobile networks to offer higher-speed access where available.
On a side note, Australia and New Zealand seem to be the hot areas for trialing or using proprietary or new wireless technologies. IPWireless gear is in use in New Zealand by Woosh, Telstra is trialing Flarion gear, and Arraycomm built a network in Sydney. [link via Techdirt]