Telstra has activated the Sydney-to-Melbourne coastal connection of its internet project. Photo: HANDOUT/TELSTRA

Australia's busiest internet route could get a speed boost of up to six times after Telstra launched the first major milestone in its $1.6 billion fibre optic network.

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The company activated the Sydney-to-Melbourne coastal connection of its internet project on Tuesday, promising transmission rates of up to 700 gigabits per second on a single fibre channel.

Telstra also revealed a study found the network could boost Australia's gross domestic product by $29 billion in 2040

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