"The pricing has been set by head office and while Australian consumers can buy the same handset from the Google Play store they do not get the 2 year warranty that is being offered by Telstra. The cost of shipping from the Google store is around $20 but there is no 10% GST", said Reed.
Revealed earlier this month, Nexus 5 smartphone has a 5-inch Full HD IPS display, a quad core Snapdragon 800 processor, an excellent rear 8MP camera and Google Now which does a bundle of clever stuff including Caller ID which matches an incoming phone number to a business even if not stored.
4G-ready Google Nexus 5 smartphone hits Telstra from Tuesday 26 November and can be pre-ordered online now. Telstra is offering all pre-orders before 26 Nov a $100 Google Play voucher.
However, Telstra is charging way above Google Play's store price - $696 RRP outright - compared to $399 from the Google Play Store.
"Nexus 5 outright pricing is in line with the current handset costs and the pricing is consistent with other handsets in our range," a Telstra spokesperson said.
"The Nexus 5 is also available on our popular $60, $80; $100 and $130 Every Day connect plans."
Telstra is offering Nexus 5 on a $60 Plan (+$9 handset repayment over 24 months), with $600 of calls and MMS, unlimited SMS and 1GB of data.
Announced earlier this month, Nexus 5 is sold on Google Play only but is tipped to be sold at Harvey Norman, later this month.
Billed as the most powerful Nexus yet, '5' ticks loads of boxes for tech savvy consumers, says Andrew Volard, Telstra Director of Device Management.
Last week Telstra switched on the 3000th 4G-compatible base station, and says its 4G LTE coverage is up to four times that of rival networks.