Politicians oppose government-mandated breakup of Telstra

Australia's government may be set on breaking up incumbent phone operator Telstra, but those desires could be squashed by the country's parliament. Under the current proposal, which is going to be reviewed by the Senate next month, the government wants to break up Telstra's retail and wholesale units.

Opposition MP Bruce Scott said one of his key concerns is that the government's proposal to break up Telstra and its subsequent National Broadband Network plan won't bring more broadband service to rural areas. "All they have done is hold a gun to the head of Telstra... and there is no guarantee with this that when markets fail in future, that there will be a communications supplier in remote areas for what is an essential service, a right."

If the government's plan were to go through, Telstra could be barred from acquiring more wireless spectrum--a factor that could prevent them expanding the reach of their NextG mobile broadband service--if the service provider does not agree to break itself up.

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