Telstra has now given the green light to upgrade 900 telephone exchanges to ADSL2+ over the next seven months, making 2.4 million customers being connected to its network for the first time.
The upgrade will also boost the maximum speeds from 8mbps to 20mbps.
Until now, carriers offering ADSL2+ were being offered by their competitors including iiNet, Primus and Internode.
Telstra said that it had resisted turning on the network due to concerns that the competition regulator, Australian Competition and Consumer Commission, would attempt to set a wholesale price on the network.
But Telstra has said that the government made it clear that it was not a compelling case to be regulated for third-party access to the new ADSL2+ service.
It has plans to turn on the network at 502 exchanges within the next three weeks. Another 400 exchanges will be upgraded within the next 200 days after.