The Greens say the Federal Government must only award the tender for its broadband plan to a company that guarantees coverage in the regions, following the announcement of Telstra's exclusion this morning.

"In opposition Labor promised to provide broadband coverage to 98% of Australia - yet we've had a situation where Telstra was expressing interest in the network but talking about leaving more than ten per cent of the population out in the cold. "

Telstra reported to the Australian Securities Exchange this morning that it had been excluded as its tender did not meet some of the project requirements.

"In remote and regional Australia in particular, broadband infrastructure is essential for access to employment, educational and social opportunities. The Government has a responsibility to protect the interests of these communities."

"The best outcome would be for the government to take a majority equity stake in the National Broadband Network to ensure it's operated in the public interest," concluded Senator Ludlam.

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