Telstra CEO says talks with government productive

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LONDON, Sept 3 | Thu Sep 3, 2009 9:21pm BST

LONDON, Sept 3 (Reuters) - Telstra (TLS.AX) is having "productive" and "professional" talks with the Australian government on its potential role in the building of a nationwide super-fast broadband network, its chief executive told Reuters.

New CEO David Thodey said on Thursday that Telstra, Australia's biggest phone company, did not yet know what part it would play in the government's planned new 43 billion Australian-dollar ($36 billion) network.

"We do believe we've got to sit down and talk to them about the best way to work together," said Thodey, who was appointed CEO in May to replace Sol Trujillo, whose combative style had made for difficult relations with the Australian government.

"There's a long way to go but we are committed to having and are enjoying an active dialogue," he said on the sidelines of an event in London announcing a new British data centre.

Thodey was named CEO in May in a move expected to herald better ties with the Australian government. Trujillo had spent much of his four-year tenure battling with the government to protect the ex-state monopoly's market dominance.

Last December, the government dumped Telstra from the running to build the country's new broadband network, saying its proposal did not fit requirements.

In April, the government said it would lead a new private-public company to build a far more ambitious network, with high-speed fibre delivering up to 100 megabits per second all the way to around 90 percent of homes.

The project is expected to take several years to complete.

Asked to describe the tone of Telstra's conversations with the Australian government, Thodey said: "Productive, professional. I respect the government's policy ambition." (Reporting by Georgina Prodhan, editing by Matthew Lewis)

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