Shares of Telecommunication company Telstra has peaked to a four-month high on Monday after investors showed their support of the group's $11 billion broadband deal.

Telstra's stock opened yesterday at $3.44, up by 21 cents or 6 per cent, and bringing it to a close at 3.4 per cent or 11c at $3.34 while the market worked on through the significance of the deal.

Under the new conditions of the deal, Telstra will receive $9 billion to transfer its customers to the $43 billion National Broadband Network and lease its network's facilities, such as pits, pipes, and ducts, to assist in the construction of the new fibre network.

Through the implementation of public policy reforms, the telco will also receive $2 billion to relieve itself from providing essential telecom services to parts of the country where services are idle.

David Thodey, chief executive of Telstra, said the deal was obtained at best value for the company's shareholders and provided the regulatory some vital information which the telco needs to revamp its business in the future.

"Regulatory certainty will allow us to compete in a more unfettered way and it will allow this company to grow the way we want it to,” Mr. Thodey said.

The chief executive said the company will focus on winning back market share for its fixed-line broadband business and will focus on investing in new products and services with NBN.

Also, the deal follows after Prime Minister Kevin Rudd gave assurance that the firm will not be prevented from accessing the wireless spectrum it needs to expand its wireless broadband service.

"The wireless spectrum auctions will not take place until 2013 and, if the deal is approved, Telstra won't start receiving cash until 2016 at the earliest," an analyst explained.

Several analysts also welcomed the deal with upgrades and new policies, but still insist that the deal must be evaluated carefully.