"This is definitely not a move away from Telstra retail business" a spokesperson for the telco told CN.
"We are still very much committed to our more than 100 company owned stores and the role these play in local communities."
The exact number of Telstra-owned stores, Vita, owners of Fone Zone and Apple reseller Next Byte, will takeover is not yet known, but is preparing to invest $13m-$17m in the expansion during FY14 and FY15.
Vita have a number of stores within the neighbouring area. The proposed acquisition of these stores would allow Vita to provide more effective management, greater consistency of offers across all branded Telstra stores, and a larger presence in the community, Telstra spokesperson added.
The new agreement "reflects the continuing strength of our partnership, and has been designed to better position us to meet the changing needs of our customers."