The set-top box, known as the "T-Box", will give users the ability to access BigPond internet content including TV channels and a movie rental service.
The company said the upgrade to its fibre-to-the-home network in Melbourne marked
an "historic day", and that "the Melbourne home will be a happier place when it's connected to our cable service".
"The completion of this cable upgrade means multiple family members can surf the internet, play games online or download movies at the same time," group managing director of product management Holly Kramer said in a statement.
The Melbourne network will now allow download speeds of up to 100 megabytes per second and uploads of two megabytes per second, but the company has refused to confirm when it will upgrade the rest of its network across the country.
No pricing details have been announced regarding the new technology, but Kramer said new plans will be "affordable". About one million homes will be able to take advantage of the new network.
But at a question and answer session, Kramer gave no details on how the roll-out of the upgraded cable network would impact the company's negotiations with the Government over its role in helping construct the National Broadband Network.
Kramer said any possible competition from the NBN was "not the reason we have done [the upgrade]."
Telstra also announced the release of the "T-Box", a set-top box that allows users to take advantage of the new high-speed cable network by streaming BigPond content onto high-definition televisions.
It comes as Foxtel, which is partly owned by Telstra, has introduced an updated version of its iQ set-top box that allows users to pause, rewind and record live television programs, as well as rent but not download newly released films.
The device allows users to record, pause and rewind live free-to-air television programs. Material can be downloaded through a BigPond user interface, along with detailed program guides for normal programming.
"T-Box also gives users unmetered access to the seven BigPond TV internet channels including live news, sport and online music all streamed directly to the television set," Kramer said, also adding the gadget is "complementary to Foxtel".
The T-Box features 200GB of storage for downloads, the ability to connect to the internet via Wi-Fi, a USB port for sharing storage and an HDMI port.
Telstra revealed no pricing details for the device, only saying it will add no extra monthly subscription fees above regular BigPond charges. Trials are expected to start in Melbourne over the coming months.
