Giant telecommunication firm Telstra Corporation (ASX: TLS) is upbeat that the $11 billion non-binding agreement it struck earlier this year with the federal government on the implementation of the national broadband network (NBN) would soon roll over into a formal deal beneficial to both parties.

Telstra chief executive David Thodey said on Wednesday that negotiation between the government and the telco is underway, underscoring that "we are actively working to complete final definitive agreements and I am pleased with the progress we are making."

Mr Thodey informed Telstra investors at a briefing the company has already expressed its intention to cooperate on the general roll out of NBN but he maintained that uncertainty still clouds the whole deal as he gave assurance that "we will continue to look at where it makes sense to Telstra to partake and participate in the roll out."

He also stressed that Telstra has yet to determine its definite role on NBN's commercial environment though the chief executive is confident that the federal government acknowledges the company's actual value on the project as he pointed to Telstra's "incredible knowledge and history we have in delivering large networks and infrastructure."

Telstra said that a formal agreement with the federal government on NBN could be reached by December 10 this year and barring any more glitches, Mr Thodey said that company shareholders would be appraising the final contents of the proposal by middle part of 2011, with actually voting on the potential contact to be set on June 2011.

However, Mr Thodey noted that Telstra's timeline would also depend on the passage of the NBN legislation eyed by the government to hurdle through the parliament by late March next year as he gave assurance that shareholders would be given window-time of at least four weeks in evaluating any agreement that the company would enter into with NBN Co.