The application to build the tower, at 53A Sandy Point Road and 10A Corrie Parade, was hit with strong opposition from the Corlette Action Group which said the tower was too close to homes and would have a negative impact on home values, views and possibly health.

Just weeks ago the Examiner reported that Corlette resident Shane Darcy had seen Telstra staff and contractors active at the proposed site.

He feared then the communication company was gearing up for a fight in the Land and Environment Court.

That has now become a reality, with Telstra confirming it would appeal the decision.

Telstra area general manager Chris Taylor said the "decision has been taken in the best interests of its customers who live in and visit the area".

"Telstra has undertaken a thorough site selection process and this proposal represents the best site and best solution to meet Telstra's requirements for providing improved mobile services for the Corlette area," Mr Taylor said.

But residents have refused to back down with Mr Darcy saying the Corlette Action Group would throw its support behind Port Stephens Council.

"We are going to give the council 100 per cent backing," he said.

He described the behaviour of Tesltra as "stubborn" and "egotistical" and based on costs.

He said a variety of other sites had been investigated and would be more suitable for the residents.

Telstra confirmed it had investigated seven other locations but the proposed site represented the best option due to environmental and planning considerations.

It was also stated by Telstra that the site was the best to meet Telstra's requirements for providing improved mobile services for the Corlette area.