Just a day after Telstra's chairman, Donald McGauchie, delivered a blistering attack on regulation, the chief executive, Sol Trujillo, made it clear the company would not be toning down its demand for changes to telecommunications policy in the lead-up to the election later this year.
Yesterday, Mr Trujillo indicated Telstra was working on alternatives to a fibre-to-the-node network in metropolitan areas, such as an upgrade to the Foxtel cable, which could eventually provide broadband speeds of between 50 and 100 megabits per second to 2.7 million homes.
Industry insiders believe Telstra's attempt to increase pressure on the Government over the construction of a high-speed broadband network in the cities is designed as a smokescreen for the cable upgrade.
Telstra is expected to ramp up the cable's speeds - used to deliver pay TV and next-generation broadband technology - to 30 megabits per second by August, before launching the upgrade a month later.
"As you saw with Next G, we didn't announce Next G before we built it, we just announced it when we did it," Mr Trujillo told reporters yesterday.
Telstra admitted earlier this week that it had started pouring some of the $4.1 billion earmarked for a high-speed broadband network into other investments. It has also left open the possibility of walking away from the Government process to select a company to build a fibre network.
A Citigroup analyst, Tim Smeallie, said the Foxtel cable could offer high-speed broadband to 2.7 million homes at a total cost of under $700 million, less than a fifth of the cost of replacing the copper wires that run from telephone exchanges to street nodes with fibre.
"We have argued for some time that Telstra has many technology options," he said. "The chairman's and CEO's comments suggest that Telstra will not invest in [fibre-to-the-node] until there is a change of regulatory settings and telecommunications policy settings.
"We don't envisage that to occur before the end of the year."
Earlier yesterday, Mr Trujillo echoed his chairman's comments from the day before when he said Australia suffered from a lack of investment in telecommunications because "money has been spent in the wrong places and because the policy settings don't make it economic".
Mr Trujillo's comments failed to provoke a firm rebuttal yesterday from the Communications Minister, Helen Coonan, who would only say: "Telstra's commercial priorities are a matter for the company, but consumers are a matter for the Government and that is why we have set up an expert taskforce to ensure that a new fibre network is built."