Telecom says it is already trialing a fourth generation mobile broadband network.
4G networks, also known as LTE or Long Term Evolution, are seen as the future of the mobile phone, offering super fast speeds.
They are being trialled in Britain and rolled out in the US and parts of Australia.
Telecom chief executive Paul Reynolds says the company's 3G network in New Zealand is performing well but he expects customers' appetite for data to continue to grow and a 4G network will be necessary in the future.
He says Telecom is very confident that customers will want to use more and more data while on the move on their smartphones.
Mr Reynolds says over the next couple of years Telecom will begin to introduce 4G technology into the network which helps improve data speeds further and gives extra capacity.
He says Telecom has already done some trials and there are likely to be more later this year.
Mr Reynolds says Telecom will be participating in the Government auction towards the end of the year for 700 megahertz spectrum which will enable the substantial build of 4G networks.