The device will allow users to download music and videos without having to be near a Wi Fi hot sport or via a Wi Fi network.
A Telstra executive told of the device said it sounds good "It will most probably have a micro SIM and be used to access gaming networks. The device has a good screen and is ideal for gaming".
The device could be introduced in September when Apple traditionally launch new iPod related products.
The introduction of a 3G capability will also let users use Skype to make VoIP voice and video calls from their Facebook account.