Australian telecommunications company Telstra expressed optimism over its negotiations with the government for an A$11 billion copper deal. Speaking at the Citi Australian Investment Conference that took place in Sydney, David Thodey, Telstra's Chief Executive, said, "We are making good progress."

Telstra, which used to be state-owned monopoly, earlier announced that it will implement a A$1 billion plan to streamline the company's operations and increase market share. The move comes as the company experienced a significant decline in market share and earnings over the past few years.

"There is a disconnect on the valuation of Telstra shares and the intrinsic value of this company," Thodey said, pertaining to the company's weakened share price. In spite of the decreased earnings, Thodey insists that his company's earning targets remain unchanged.

The company is currently in talks with the government for a final deal over its fixed line assets.