Mr Vaile told a meeting of Queensland Nationals in Brisbane that Telstra would not be allowed to access any Federal funding to upgrade its Next G network in regional areas.
Although Government has committed funding to regional communications, including $958 million in new money for the bush, and the $2 billion “future proofing” fund.
“I want to emphasise that we will not be using money from the Communications Fund to bring Telstra's Next G network up to scratch,” Mr Vaile said.
“We will simply not allow Telstra to switch off the existing CDMA network until you are satisfied with the coverage and reliability of its replacement,” he said.
“They don't just have to convince the Government: they have to convince you, the consumers.”
The Nationals appear fully intent on ensuring Telstra chief executive Sol Trujillo meets commitments made in the Nationals party room in Canberra that the next-generation Next G mobile phone coverage would be as good or better in regional Australia than the CDMA network it replaces.
The Nationals secured the commitment from Mr Trujillo prior to the party agreeing to the T3 sale of Telstra shares.
The CDMA network is scheduled to be switched off early next year. The Government has the power to force Telstra to maintain CDMA until its Next G service is comparable.
The CDMA is the only mobile network that covers much of regional, rural and remote Australia, and is relied on by many communities in heartland Nationals territories.
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