Yes of course it works, you are just trying to come up with more lame excuses for Apple. Telstra do sell 4G phones that work on 4G in THIS country.
Please for the love of God, get out of the sales business! You have zero clue what you are on about.
Actually tell us all where you work so I can come in and humiliate you in front of all your colleagues for not understanding the most basic of consumer law in this country. You will be exposed for the fool you are.
It works the same way as an iPad works, you go to a place with a compatible network and it works on "4G" exactly as advertised that's because there is a "4G" compatible hardware chip built in.
btw which definition does Telstra's "4G" claim use in the extremely limited parts of the earth where it's available?
Here's the New iPad label, it still describes compatible networks, the only thing that changed was the "4G" symbol and it will magically become "4G" compatible after the 700MHz spectrum auction in Australia next year.