Telstra is a step closer to beating its rivals in the race to develop a high-speed mobile network after turning on its first 5G sites in Sydney and Melbourne.

Australians will be unable to use 5G until smartphones and other devices are released that can access the new network, but the sooner than expected access allows Telstra to start testing ahead of a public rollout. Telstra has 187 sites upgraded for the latest technology.

Telstra chief executive Andy Penn has pinned his hopes on a 5G future. Credit:Ryan Stuart

Developing the next generation of mobile infrastructure has become a critical race between Australian telcos as they struggle with the disruption of the National Broadband Network rollout and increased mobile competition putting pressure on prices.

The launch of 5G is expected to be a game-changer, with faster speeds compared to 3G and 4G widely tipped to spur on a new raft of business opportunities for mobile providers as industries like transport, logistics, agriculture and critical infrastructure become more connected.