Telstra has submitted a development application to Port Stephens Council for a pole and antennae to be erected on land adjacent to Corrie Parade and Fame Avenue, off Sandy Point Road.

David Cashel lives immediately near the site, which is owned by Port Stephens Council.

He told the Examiner he was concerned about the health and visual environment impact and the loss of property values if the tower was built.

"We have spoken to real estate agents and they say it will affect the value of our property," he said.

"If I am looking to buy a home and I come to one right next to a communications tower, I'm just going to move onto the next one."

On Sunday a meeting of more than 50 residents was held at Corlette to protest against the proposal.

Among them was ex-rugby league player and current football commentator Peter Sterling who owns property in the area.

The meeting called on Telstra to abandon its proposal.

This week Paterson federal MP Bob Baldwin said residents should be given more time to comment on the project.

He said he supported improved mobile phone coverage but "proper consultation" was needed when it involved a new tower near homes.

Mr Cashel said he was also concerned about how Telstra and the council had dealt with the proposal.

He said the council had speedily approved the project and then rescinded the decision when opposition surfaced.

But council planner Ken Solman said the council had only indicated to Telstra that it was free to submit an application, not that it was approved.

"As the owner, the council can say at any time it doesn't want the project to go ahead and the whole thing falls over," Mr Solman said.

Due to the angst caused by the proposal, staff will brief councillors on the issue in February. As well, the council would invite public comment on the issue a second time.

Meanwhile Telstra says it acknowledges some people are genuinely concerned about possible health effects from the electromagnetic energy from mobile phone base stations.

But its NSW site acquisition manager, Bob Coyne, said the World Health Organisation and other public health authorities had advised there was no substantiated scientific evidence radio frequency technologies which operated within national and international safety standards, including mobile phones and base stations, caused health effects. Mr Coyne said Telstra had undertaken a thorough investigation of alternative locations before lodging its DA for the Corlette site.

Each of the other locations had a greater visual impact.