With the iPhone 4 on its way to Australia, Motorola looks set to join the fray with a new offering running Google’s Android operating system. With a 5 megapixel camera and slide out keyboard, the Motorola Milestone might just be the one to look out for.

The fourth Motorola Android handset to be released in this country, the Milestone handset feels solid in the hands with a build quality geared at professionals. At 13.7mm thin, the Milestone is one of the world’s thinnest phones to feature a slide-out QWERTY keyboard.

Outside of that, the most obvious thing about the Milestone is its huge 3.7-inch touchscreen, and man is it big. Considering this phone is about to go up against devices like the Sony Ericsson Xperia X10 and Samsung Galaxy S – each with a 4 inch screen – this is pretty important.

Speed too is important and Motorola has included a 600MHz Cortex-A8 processor, a departure from the more commonly used 1GHz Snapdragon seen in the HTC Desire, Sony Ericsson Xperia X10, and the upcoming Dell Streak.

Interestingly, the A8 processor shares technology found inside the Apple iPad and upcoming iPhone 4, making the Milestone more like those devices than its competitors.

If that’s not enough, there’s also a 5 megapixel camera with flash, 8GB microSD card, and GPS built-in featuring Motorola’s own turn-by-turn navigation system.

Optus will have the Milestone for $0 on $49 plans for both consumer and business when the phone is released Wednesday, July 7, 2010.

Motorola Milestone