Changes ahead for Telstra

CANBERRA - The Australian government will today introduce laws to safeguard Telstra services in the bush after the telecommunications giant is privatised.

Under the laws, Telstra's services in remote areas will be subject to review by an independent panel every five years.

It will also have to draw up local presence plans which will tie it to providing services to rural and regional areas.

Communications minister Helen Coonan, meanwhile, left the door open to other changes to Telstra, ahead of privatisation.

Telstra could be allowed to split its phone and internet services for households from those it provides business after the government softened its opposition to structural change.

Coonan flagged the possibility in the face of pressure from the Nationals for the government to consider forcing Telstra to undergo some sort of structural separation before it was fully privatised.

If Telstra splits its retail and wholesale operations into two different businesses, competition is expected to improve and deliver benefits to consumers and businesses.

- AAP