The Australian government has won a critical victory in its battle to win passage of legislation to bill to separate Telstra and advance its NBN project.
The Senate agreed today advance the bill to a second reading after the government promised to set up a parliamentary committee to oversee the project.
Key independent Senator Nick Xenophon, who voted for the project after striking a deal with the Labor government, revealed that without the cooperation of Telstra the project would cost at least another A$5.5 billion ($5.4b).
Xenophon was given documents containing crucial details of the project last night, and said he had been promised a briefing by NBN Co. chief Mike Quigley.
Xenophon had been refusing to support the legislation unless the government reveals the details of the NBN business plan, which the government isn't planning to release until next month. But the government has now agreed to release a summary of the business plan early, he said.
The legislation would allow for the structural separation of Telstra's retail wing from the rest of the company.
This is a condition of the government's plan to offer Telstra A$11 billion ($10.7b) for its copper ducts and infrastructure, and have Telstra sign on as an NBN customer.
But the opposition Coalition is attempting to block progress of the legislation until the government submits a detailed cost-benefit analysis of the project, which could cost up to A$43 billion.
The government earlier this week secured the backing of the minority Greens party, in exchange for agreeing to amendments requiring parliamentary approval for an eventual sale of the NBN network assets.
The Coalition today revealed it may yet vote for the legislation, but only if the government agrees to submit to a Productivity Commission cost-benefit inquiry by next May.
Senator Conroy is eager to have the separation bill passed by the end of the senate's sitting session, so that the government and Telstra can meet their proposed deadline of having a deal to take to Telstra shareholders by the middle of next year.
The last scheduled sitting day for the Senate is tomorrow, and the break is likely to last until February.