Australian telecom reforms bill strains coalition unity

The partnership between the Liberals and the Nationals in Australia, referred to as the Coalition, has come under severe strain over the government's proposed telecommunications reforms bill, due to come up for a vote in the Australian parliament this year.

According to analysts, the Coalition will try to delay a vote on the bill until the Rudd government's study of the $43-billion national broadband network is completed in February.

The government seems determined to push the bill through before the end of the year a spokesman for communications minister Stephen Conroy said.

However, opposition communications spokesman Nick Minichin said the Liberal Party would seek major changes to the bill, including the removal of measures to break up Telstra if the government brought the bill to a vote this year.

Analysts say the government would not be inclined to accept the changes.

Under the new laws, Telstra would have to separate its wholesale and retail arms to access new spectrum crucial to is future business. It would be denied access to the spectrum if it did not split its businesses.