David Thodey to replace Sol Trujillo as Telstra CEO

The prolonged Telstra-Rudd government stand off seems to have finally ended with the telco deciding it was time to improve relations with the administration. The company announced that David Thodey, head of its government and enterprise unit would take over the reins as chief executive.

Telstra, formerly owned by the Australian government, is the largest provider of both local and long distance telephone services, mobile services, dialup, wireless, DSL and cable internet access in Australia.

Sol TrujilloUnder former chief executive Solomom (Sol) Trujillo, the telco has hardly been on the best of terms with the government and had its bid for a $15-billion telecom project rejected by the government for failing to comply with bid requirements. The telco had for months earlier threatened to pull out of the tendering process unless the government removed the condition for a structural separation of its broadband network infrastructure from the retail arm.

Thodey, 54, is widely believed to be the government's preferred candidate for the post. The appointment of Thodey brings brings down the curtain on a stormy period marked by confrontation in Telstra's relationship with two governments since the appointment of Trujillo in 2005.

Telstra chairman, Donald McGauchie has been making conciliatory moves in recent months which seem to have gone down better with the government. It has welcomed this as a sign of a more constructive approach.

But the government may be expected to negotiate hard over the building of its proposed $43 billion national broadband network, which will severely test Thodey and the board.