Telstra, executives who are aware of the product have said that the new technology will drive data traffic on their NextG network when launched as it delivers multiple capabilities.

The new HD2 smartphone which runs on the Windows Mobile 6.5 operating system combines all the functions of a 3G smartphone as well as a portable Wi-Fi router. It also has the new HTC Sense interface which allows users to personalise applications on the display screen.

The phone also has a proximity sensor to prevent false screen touches when the phone is placed next to an ear. This is a problem that iPhone users are constantly complaining about.

The new HTC offering will also have a light sensor to automatically change display brightness, and an optional car kit that automatically puts the phone into GPS mode for car navigation use.

The HD2 is expected in Australia early in 2010 according to HTC sources. 

The phone which has 480 X 800 WVGA display, also has a 5-megapixel camera, 1GHz Qualcomm Snapdragon processor and GPS.