The federal government is a step closer to implementing its proposed $11 billion broadband alliance with Telstra after independent MPs backed laws to enforce the plan. The MPs blocked the coalition’s bid to amend the government bill to split Telstra into wholesale and retail operations, paving the way to start the new network. However, the government has also had to abandon plans to mandate the privatisation of the network in a compromise with the Greens. This has raised doubts as to how a future government would recoup the $26 billion equity investment without being able to go down the privatisation route.

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