The plan involves doubling its 4G coverage in Sydney, Melbourne, Brisbane, Adelaide and Perth starting with the launch of its 4G service in Bondi from today.
The roll-out will extend the carrier's coverage from a radius of 5km around Sydney and Melbourne's CBDs to at least 15km.
The expansion is part of a $1.2 billion investment package for the mobile network that chief David Thodey revealed at its results presentation earlier this month.
At the time Mr Thodey said that Telstra had set aside $500m to expand the 4G network alone.
Telstra chief operating officer Brendon Riley said that the expansion would require at least 1000 new 4G base stations to be deployed by mid-2013.
"Our view is that 4G will become the dominant technology over the next two years and we think that in that time anyone considering a new device will be looking for a 4G device," Mr Riley said.
The carrier revealed that 500,000 4G devices were currently operating on its 4G network. Around 340,000 of those were mobile broadband devices while the remainder were 4G smart phones.
Telstra's mobile business accounted for just over a third of its revenue last financial year pushing its profit into growth for the first time since 2009 at $3.4 billion.
Telstra's mobile business - which now boasts 13.8 million customers - grew revenue by 8.5 per cent to $8.7 billion for the year to June 30 compared with $8 billion in the previous corresponding period.
The carrier added 1.6 million mobile customers last financial year.
Telstra has enjoyed healthy lead over rivals Optus and Vodafone in 4G deployment.
It first turned on its 4G network in capitals in May last year and started operating commercially in capitals the following September. It has also started allowing handsets to operate on the network.
Optus began operating its first 4G mobile broadband services in Newcastle in March and expanded the service to Sydney and Perth from the start of this month.