It is being said by the Prime Minister Kevin Rudd that the conclusion to keep out Telstra from bidding to build the national broadband network was made at arm's length from the Federal Government.

Since Telstra was not contended that there was enough detail from the Government on regulatory requirements, it submitted a brief proposal instead of a full bid.

According to Telstra, the reason behind its exclusion is that it did not say how it would include small and medium businesses in the network's construction.

The Government has been accused by telco on account of using a peripheral issue to block it from winning the tender.

However, Mr. Rudd informs that an independent panel assessing all of the bids and the project is still on track was behind making this decision.

He said, “We've regarded this as a necessary investment in the nation's infrastructure and we would do so on the basis of a competitive tender process.”

He added, “That panel that's been at work has been full at arm's length from Government and has reached its own conclusions. We're determined to implement our pre-election commitment and we'll do so consistent with the process that we've initiated and the recommendations of the panel.