However, it rejected reports it was negotiating with China's Unicom Group to assist in establishing its mobile phone network for more than 200 cities.

A Telstra spokesperson said chief executive Ziggy Switkowski and Telstra International boss Dick Simpson held talks with Unicom in Beijing last weekend.

However, she said the talks were part of a range of discussions Telstra had with companies as part of its post-Olympic relationship with China.

"As part of those meetings there was a meeting with Unicom to talk about our capabilities," the spokesperson said.

"Every company in China is looking based on our Olympic success and experience in telecoms, there is a lot of interest."

The spokesperson said Telstra and Unicom talked about the potential for future business.

She rejected reports that Telstra was negotiating a partnership in the rollout of Unicom's mobile network in 200 cities.

"There are opportunities post the WTO (World Trade Organisation), but our visit was all about building on existing contacts, relationships and it is premature very much to suggest an agreement is imminent," the spokesperson said.

(Eastday 04/03/2001)