Australia announces telecom reforms to break up Telstra

The Australian government has announced a package of reforms to telecommunications regulations aimed at ending the stranglehold of telecom giant Telstra and eventually pave the way for its break-up.

Communications minister Stephen Conroy said the reforms would address Telsta's high level of integration with the aim of promoting greater competition and consumer benefits.

He said Telstra, part-owned by the government and subject to strict regulation, would be barred from acquiring new wireless spectrum unless it voluntarily split its retail and network arms.

The draft laws will require Telstra to lose its cable network and divest its interests in the pay television arm, Foxtel. (See: Australian government forces Telstra to split)

Telstra will be prevented from acquiring additional spectrum for advanced mobile services.

"The government will require the functional separation of Telstra, unless it decides to voluntarily structurally separate," he said.