Telstra chief executive David Thodey says the company is facing challenging times as it seeks to leverage its position as a "great Australian company" in the face of proposed legislation that will drive changes to its business.
Communications minister Stephen Conroy has proposed legislation, which Melbourne-based Telstra opposes, which would require it to split its wholesale and retail businesses as the government pursues the set up of a $42 billion national broadband network (NBN).
"We remain positively and constructively engaged with the government on the issue of NBN, but we are under no illusions as to the challenges we face," Mr Thodey told shareholders at the group's annual general meeting on Wednesday.
"This is an extremely complex negotiation as it covers so many different aspects of our business."
He added: "Can I promise that a mutually acceptable agreement will be reached? No.
"Do I think there is a pathway to such an agreement? Yes.
"What I can assure you is that the board and management will not agree to any proposals on the NBN ... or separation ... unless we are convinced that it will deliver fair value for you the shareholders of this company."
Mr Thodey reassured investors that whatever the outcome of its talks with the government, Telstra had the core asset to "win in the market."
Mr Thodey also emphasised the issue of customer service.
"Customer service is very important for us ... and while we have many areas where we can improve ... we are committed to making the necessary changes," he said.
Telstra has announced it will scrap a controversial $2.20 administration fee for people paying their bills over the counter or by mail less than two months after it was introduced on September 14.
"We tried to impose this change without first listening to the people it would affect," Mr Thodey said on Wednesday.
"That is not consistent with my commitment to put customers at the heart of everything we do."
However, Mr Thodey said the company still wanted to encourage customers to use electronic payment methods.
"That being said, I still believe electronic payment is the right way to go ... and we do intend to introduce some electronic-only plans in the future ... but it will be your choice if you want to use them," he said.
Mr Thodey also reiterated the company's guidance to post low single digit growth in revenue, earnings before interest, tax, depreciation and amortisation (EBITDA) and EBIT in the current financial year.
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