It's no secret that HTC is working on a new Android phone to follow up the T-Mobile G1 that it designed. The latest fuel for the rumor fire comes from executives working for Telstra, Australia's largest telecommunications provider. While previewing Palm's much-hyped Pre handset, a Telstra exec made the comment that while the Pre was promising, it needed work before it would be able to compete with the iPhone and the "new HTC handset".

In a separate comment, a Telstra employee talked about the phone's software, saying it will be built on Android and feature HTC-coded Linux extensions, and the hardware, noting that its touchscreen will likely be the largest yet featured by HTC. If this rumored HTC handset is different from the company's existing handsets, then perhaps the HTC Touch HD isn't to be the future T-Mobile G2. We've heard about a G3 in the works as well, so there's always the chance that's how U.S. consumers will be introduced to this forthcoming Telstra handset. Australians will be able to get their hands on it sometime during the second quarter of 2009.

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