Telstra opposes split, terms government plan ‘unnecessary and damaging’

Senior executives from Australia's telecom major Telstra have hit back at the federal government saying its plan to split the company is unnecessary and damaging.

Their comments came in response to a senate inquiry in Melbourne to explain their reasons for rejection of the government's demand for voluntary separation of the telecom major's retail wholesale arms.

It is nearly a month since Telstra was extended an offer it could not refuse by communicatons minister Stephen Conroy but the company has refused it. A senate committee will now go into the implications and consequences of the bill to split Telstra.

Telstra was asked to effect a separation of it fixed-line copper network from its other businesses or lose the option to acquire any new wireless spectrum, which essentially amounts to delivering the next generation of mobile phone services.

Telstra's executive director of regulatory affairs Dr Tony Warren has, meanwhile hit back at supporters of the separation who cite its success in the UK and New Zealand.

He said that separation has not been a success and in addition to constraining the incumbent it has harmed both shareholders and consumers.