Austria is a very different market in terms of pricing (phones and fees) than France, Germany and the UK. All major providers have built and were agressively marketing 3G UMTS networks in the past 2 years, all trying to convince their customers that UMTS is the only technology for mobile broadband-speed available. Comercial WLAN Hotspots are mainly available in major cities - usually operated by T-Mobile but even there - WLAN coverage is not satisfying.
Mobile 3G Dataplans start at 25/month including 10GB Data for HSDPA 7,2 Mbit ("3" by Hutchinson, also T-Mobile, USB 3G HSDPA modems & data-cards starting at 49).
Another point is that Austrian providers have sponsored mobile phones for years - even top brand busines phones used to be not more than 199 with a contract, consumer models "free" or for a symbolic charge of 1.
The iPhone is not 3G capable, Wireless dataplans are not really attractive (bad coverage) but it's a beautiful phone with the "wanna have" factor.
Tieing the device to an expensive dataplan like in Germany or in the UK could dramatically limit sales here.