Telstra boss Andrew Penn hopes a new reconciliation deal marks a turning point for the company after several stores were caught out ripping off Indigenous customers.

The telco giant has put pen to paper on a new Reconciliation Action Plan one year after being stripped of its former RAP over predatory sales tactics used on First Nations people.

Telstra has been awarded a stretch RAP - one level below its former ranking achieved for showing leadership in the field - which recognises a company's abilty to embed reconciliation in its 'business as usual' approach.

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Speaking to the NIT from Garma Festival, Mr Penn said in the past he had made the mistake of confusing fixing a problem for reconciliation.

"As a society in many ways we let our First Nations peoples down was just and so for there for me to think that I could suddenly fix it and therefore that would make everything right, it was was naive," he said.

"And so to me, I think that's why I say reconciliation is very much a process.

"It is a process that cant be hurried.

The ACCC started court proceedings against Telstra over allegations five stores deliberately ripped off Indigenous customers in WA, the NT and SA between 2016 and 2018.

As a result, in April 2021 Reconciliation Australia revoked its elevate RAP and one month later Telstra was fined $50m by the Federal Court.

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Mr Penn said since the court proceedings Telstra had simplified plans, boosted efforts to help customers understand its technology, monitored bills more proactively and started a remote community outreach service which had visited more than 150 locations.

"What has emerged is the opportunity to think more deeply and more longer term about the role we play in reconciliation in serving our customers," he said.

"I think we will approach it differently in the future.

Reconciliation has four levels when it comes to RAP plans starting with reflect, innovate, stretch and elevate.