Coalition opposing Telstra break-up

The coalition will continue to oppose legislation that paves the way for Telstra to
be broken up.

The Rudd government says the separation of Telstra's wholesale and retail arms is
needed to improve competition in the telco sector ahead of the rollout of the
national broadband network.
Debate on the proposed laws is expected to take place in the Senate on Thursday but
the coalition on Tuesday vowed to vote against the legislation, which also includes
measures aimed at improving consumer safeguards.
Opposition communications spokesman Tony Smith said that while the coalition was not
opposed to elements of the legislation that would improve consumer protections, it
could not support the break-up of Telstra.
"Labor's legislation is a deliberate assault on Telstra and its 1.4 million
shareholders and 30,000 employees," Mr Smith said.
"As we've said from day one, Telstra shareholders have every reason to be outraged
by Labor's plans to force the break-up of the company."