In a recent statement issued by the company, telecom giant Telstra has confirmed that it will be "very firm" in its talk with the Australian Government over its proposed broadband network set-up. It has been revealed by the firm that a functional breakup could cost the company a huge amount of nearly A$1.2 Billion.

The Government, in order to improve broadband services across the country, is looking at selling Telstra's fixed-line assets and converting the same into A$43 Billion open-access, high speed broadband network that would cover the whole country. The services are currently being developed by the Government.

As per the Government's plans, there will soon be a legislation that would require Telstra, the current Australian dominator of the fixed-line broadband market, to either split its network assets voluntarily or face regulation which would be much tougher than before. The "enforced" regulations would include a "functional separation of business".

"We are being very firm in these arrangements", Telstra Chairwoman Catherine Livingstone shared. “We can't agree to arrangements which compromise shareholder value".

According to the company, the company's split would hurt shareholders and it would fight anything that is detrimental to both the firm, and its investors. Final calls are yet to be taken.