TELSTRA’S management team is driving a hard bargain over the Rudd government’s national broadband network, Communications Minister Stephen Conroy says.

He has moved to reassure shareholders their interests will be looked after regardless of whether the government strikes a deal with the telco.

“This is a commercial negotiation and the stakes are high,” Senator Conroy told Sky News yesterday. “(But) Telstra will ultimately only do a deal if it benefits their shareholders. They (Telstra management) drive a hard bargain, they continue to drive a hard bargain, they’re going to not stop.”

He maintains it will be a win-win situation should an agreement be reached, but conceded both sides would have to walk away if negotiations proved too difficult.

Telstra is holding separate negotiations with the government and NBN Co over the billion-dollar network, which will be cheaper for taxpayers if they can work together.

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