Follow the steps to type Telugu Vattulu in iPhone:
Open Settings Application and chose General
From the General page, select Keyboard
From the Keyboards page, click on Keyboards option
From the Keyboards management page use ‘Add new Keyboard…’ option to choose if not already installed. You can install & select one of many languages listed in the Add New Keyboard… page. Once installed, the keyboard will list after the default keyboards (Usually English, Emoji).
Click on the Globe symbol displayed at the lower part of the screen to switch between every one of the dialects introduced in the above stage. Assuming you have just Telugu introduced other than English, clicking globe symbol essentially switch among English and Telugu.