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. "

The Australian Greens say it's now up to the Federal Government to guarantee comprehensive broadband coverage for regional Australia, after the Senate last night voted to merge the now- defunct regional communications fund with a new Building Australia Fund.

"The Federal Government has abolished the existing $2 billion regional communications fund and the government must assure regional Australia this commitment to future-proof regional areas still remains," said the Greens Communications Spokesperson, Senator Scott Ludlam.

The Australian Greens say the Government must take a majority equity stake in the National Broadband Network to ensure it's operated in the public interest, as controversy regarding Telstra's bid continues.

"Telstra has carefully cherry-picked from the government's project objectives throughout the bidding process. It wants the $4.7 billion dollars as a low interest loan, it will only cover 80 to 90% of the government's promised 98% of the population and it wants regulations governing competition watered down further," said the Greens Communications Spokesperson, Senator Scott Ludlam.

The Australian Greens are concerned the public may be the real losers under the new National Broadband Network and are calling on the federal government to explain how it will protect end-users from price hikes, as tenders for the project close today.

"Privatisation of essential public services is not the answer when you want the public interest to take precedence over shareholders. Broadband is an essential service that should be run for the public, by the public and it is a key plank in delivering Green collar jobs and the green economy." said Greens Communications Spokesperson Senator Ludlam.