Giant telco Telstra Corporation unveiled on Tuesday its plan to boost the capability of its wireless services by upgrading to the new 4G technology, which the company said would adequately meet Australia's growing demands for mobile data.

The cutting-edge technology, according to Telstra, would be initially deployed in major cities and a number of selected regional areas by the last quarter of 2011.

Telstra's planned wireless upgrade this year will utilise the long term evolution technology, which company chief executive David Thodey said would provide "Australians with leading-edge mobile broadband services on the world's largest national mobile network."

Thodey added that the new 4G technology would deliver "faster data speeds, high-quality video conferencing and faster response times when using mobile applications or accessing the internet."

The revelation came as a government-sponsored report issued on Monday carried warnings that the entry of better wireless technologies in the country could render the $37 billion national broadband network project less viable.

The Coalition backed the report's assumption as opposition communication spokesman Malcolm Turnbull stressed that the idea of NBN has been pushed basing on the argument that wireless broadband would not be able to provide reasonable access to the internet.

However, Turnbull said that it turns out wireless broadband technology is consistently improving and will going to be "a real competitive force."

On the other hand, telco expert Paul Budde does not believe that the improving wireless technology will undermine the long-term usability of the NBN as he pointed out that an overlap of functions may occur "but there are applications that are impossible to run over a wireless network."

Budde told ABC that in such case, significant sectors like health, education, media and energy would definitely turn to the fibre-optic technologies offered by NBN, which aims to deliver broadband connections to 93 percent of Australian households by 2020.