Sol Trujillo, the U.S.-born CEO of Telstra, confirmed plans to resign his post on June 30 after nearly five years at the helm of Australia’s largest telecom company. The announcement comes three months after the Australian government excluded Telstra from a bidding process to build a national high-speed broadband network that is expected to be valued in excess of US $6.5 billion. Although the government claimed that Telstra’s proposal failed to satisfy minimum requirements for covering low-income customers, sources say that a long-standing history of confrontations between Trujillo and government officials on a range of issues may have contributed to the government’s decision. As observers predicted that Trujillo’s departure would boost Telstra’s chances of resurrecting its broadband network plans, Telstra Chairman Donald McGauchie proclaimed that Trujillo’s time at the helm would be “considered a pivotal and critical period” in the company’s history. Trujillo—a former chief of France Telecom’s Orange unit who also served as president of regional Bell operating company US West prior to its 2000 acquisition by Qwest Communications—has pledged to work with the Telstra board to ensure a smooth transition before he returns to the U.S. this summer. As McGauchie said the time was suitable “for a transition to a new CEO,” Trujillo emphasized that, during his service as CEO, “Telstra achieved free cash flow growth, margin growth and growth in returns, and I’m not sure I can name any company that can say that.”