Telstra: broadband talks progress well

SYDNEY, AUSTRALIA: Australia's dominant phone company Telstra Corp said on Tuesday talks to finalise an A$11 billion ($10.9 billion) agreement to sell its copper network to the government were progressing well.

"We are making good progress," Chief Executive David Thodey said at the Citi Australian Investment Conference in Sydney.

The former state-owned monopoly also last month unveiled a A$1 billion plan to grow market share and streamline the company following a sharp slide in earnings and market share over the past few years that has hammered its share price.

"There is a disconnect on the valuation of Telstra shares and the intrinsic value of this company," Thodey told the conference, adding the company's earnings targets announced last month remained on track.

He reiterated the company's dividend policy was unchanged but it would be kept under review. Telstra has said it is committed to holding its dividend at the current level of 28 cents for the next three years.

Telstra is negotiating a final deal with the government to hand over its fixed-line assets to form the basis of a National Broadband Network