"Our results speak for themselves," said Telstra spokesman David Lording, pointing to the company's net profit of A$3 billion for the year to June 30, 1998, up 17 per cent on the previous year.

The Australian government owns two-thirds of Telstra Corp after having sold one-third in a public share offer late in 1998.

In a pre-election tussle on Tuesday over the government's plan to continue privatising Telstra in stages, opposition Labor leader Kim Beazley likened selling off the company to selling off Australia's gold-rich Kalgoorlie before the gold rush.

Alston in reply said the company's growth prospects were not so rosy in an industry that was becoming increasingly competitive.

"There is absolutely no reason why one should assume that the gold rush as far as Telstra is concerned lies ahead," Alstom said.

While the comment on Telstra's long-term prospects was played up as unusual coming from a minister trying to privatise the company, a spokesman for Alston said the remark was not surprising.

"As anyone in the telecommunications industry will tell you, it is increasingly high risk," Alston's spokesman said.

Most industry analysts expect Telstra's profit to grow by at least 10 per cent in 1998-99, with some forecasting growth as high as 20 per cent, partly because the company will not have to set aside new money for superannuation for the next few years.

One analyst said that while Telstra was an attractive investment, as its monopoly status was eroded, its profit margins would have to fall by up to 30 per cent.

But in terms of running an efficient business, the sooner it was privatised, the better, he said.

"From an operating sense, it has its best years ahead,"said Bill Bannister, industrial analyst for brokers D&D Tolhurst.