The Australian government is planning to break up telecommunications giant Telstra.
The former state monopoly will have to split its wholesale and retail operations, or risk losing access to wireless broadband under the draft legislation.
The government says it is giving Telstra a choice about its future but the regulations announced on Tuesday amount to an ultimatum, the ABC reports.
Telstra must either split its retail and wholesale businesses, or face restrictions on its ability to offer new services.
Communications Minister Stephen Conroy says he hopes Telstra decides to split the business to promote greater competition and consumer benefits.
The opposition's spokesman, Nick Minchin, says the new regulatory regime threatens the shares held by many Australians.
The government hopes the new regulations will be voted on in November this year.
If Telstra does not voluntarily restructure the organisation the Government will legislate a split and force Telstra to sell off its cable network and 50% share in Foxtel.
Legislation introduced into Parliament on Tuesday will also force Telstra to comply with minimum standards or face a $A10 million fine, and the powers of the Australian Competition and Consumer Commission will also be strengthened to deal with anti-competitive behaviour in the industry.
