Telstra boss warns against harsh competition laws

Telstra's ability to compete against rivals would be compromised if the Australian federal government imposes heavy-handed competition laws, new Telstra boss Sol Trujillo has told Howard government ministers.

Mr Trujillo delivered the blunt warning at a dinner with Communications Minister Helen Coonan and Finance Minister Nick Minchin in Sydney last Tuesday, News Ltd papers report.

Telstra is battling to avoid the imposition of what it sees as unworkable regulations that would curtail its ability to compete once it is fully privatised.

The warning reinforces views that the A$30 billion ($33.7 billion) sale of Telstra could yet face hurdles, despite the coalition's dominance of the Senate, the Australian newspaper says.

Mr Trujillo's warning comes as debate continues over the A$30 billion sale of the government's remaining 51.8 per cent share in the national telco.

Queensland Nationals' MPs yesterday met to formulate a five point plan they believe must be met before the sale goes ahead.

This includes a multi-billion rural trust fund for future service upgrades, and service parity between the bush and cities.

- AAP