Both Telstra and Optus have concerns over NBN Operation. From...

Both Telstra and Optus have concerns over NBN Operation.

From todays Australian.

TELSTRA says the Gillard government's proposed laws for the National Broadband Network threaten to wipe out the public benefits of the $36 billion project by allowing the NBN Co to monopolise new areas and strangle future competition.

Even as Telstra negotiates remaining hurdles to the $11bn deal to join the nation's biggest infrastructure project, it is demanding changes to the next set of NBN legislation, which sets the rules for the NBN Co building the national network.

Last night, the office of Communications Minister Stephen Conroy said the government was "keeping an open mind to any amendments" and was in discussions with Telstra about the legislation.

The telco giant has told a parliamentary inquiry that the so-called Companies Bill and the Access Bill for the project have deficiencies that put "the benefits of the NBN in jeopardy".

Optus chief executive Paul O'Sullivan, said at a Forum on the Gold Coast, NBN should be overseen by an independent board to ensure its operation remains at arms' length both from government and existing telecommunications players.

He said tenders for operation of the giant fibre network should be issued on a state-by-state basis to enhance competition and ensure the NBN has the best chance of delivering acceptable levels of customer service.

O'Sullivan also wants - the complete outsourcing of NBN Co management on a recurring basis.