Telstra who is set to lose a billion dollars on fixed line income over the next couple of years is now trying to lure customers back to using a phone at home with a new social networking touch screen device that will cost a minimum of $2,651 which is 3 times more expensive than what the new iPad will be in Australia.

To use the new Telstra T Hub, you also have to have a BigPond broadband connection and a Telstra landline as well as a 13 digit account number.

Designed to generate data and voice revenue the device has a 7" touch screen and is plastered in Telstra services which when used generate more revenue for Telstra.

A  Telstra press release says that the minimum Min cost is $2651 plus a $9.95 delivery fee and usage.  The T-Hub Bundles are only available to new customers or those with a 13 digit account number.  Prices for the T-Hub may vary at T-Life, Telstra Licensed Stores and Telstra's third party dealers.

Designed to be a be all end all device for the home it also has a music player, video player, digital photo frame program, digital radio, contacts book, notepad, White Pages, Yellow Pages, calendar and the ability to store content.

Yesterday consumer marketing division executive, Jenny Young, admitted that the device was all about getting more revenue out of consumers.

In February, Telstra reported a 6.9 per cent drop in revenue from fixed line services in the six months to December 31 with analysts now claiming that Telstra is facing a revenue black hole as consumer's desert home phone for mobile devices and new video services like Skype.

Telstra CEO David Thodey recently said "Our business is not selling devices; our business is selling broadband and fixed line".

A Telstra spokesperson admitted today that to get the full benefits of the new device which includes applications such as Facebook, YouTube, Twitter and MySpace the device has to be on all the time with questions now being raised about the amount of power that a device like this uses when connected all the time to a power grid.