Telecom will launch a third generation mobile phone service based on EV-DO (evolution data optimised) technology later this year.
The service, to be called T3G, will be provided by Telecom partner Lucent Technologies, which manages Telecom's CDMA1x 027 network.
Telecom claims T3G will give customers speeds 15 times faster than CDMA1x and allow services such as video messaging and live TV on handsets.
EV-DO has a maximum theoretical download speed of 2.4Mbit/s and averages 500Mbit/s and, according to Lucent, uploads are "comparable" with the CDMA1x maximum of 153Kbit/s. It is a further progression of CDMA, as is EV-DV (evolution data and voice).
EV-DO is running in the US and South Korea and Telecom will spend $40 million on the EV-DO upgrade.