The Federal Opposition says Telstra's $11 billion deal over the Government's National Broadband Network (NBN) would lump taxpayers with billions of dollars of debt for decades to come.
An $11 billion national network broadband deal with Telstra, announced by the government on Sunday, will use the telco's infrastructure to roll out the scheme.
"There's absolutely no doubt that what the government has announced today will mean much higher prices for customers in achieving and accessing broadband in the years ahead," Mr Robb told reporters on Sunday.
"It'll come with a multi-billion dollar taxpayer debt that will have to be paid off over decades."
He said the network would not be delivered for eight years and would not receive shareholder agreement for 12 months.
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The opposition says it will unveil a cheaper alternative before the election.
Mr Robb said the coalition would properly involve the private sector in a national broadband service in a shorter timeframe and without wastage.
"This is government gone mad," he said of the government's plan.
"There are people out there, especially in regional Australia, who are just absolutely dying to see a service which is effectively and quickly introduced."
The terms of the lease were not disclosed but sources close to the negotiations told AAP the agreement was for a period much longer than 10 years.
Telstra will also be required to decommission its copper network and cable broadband service, and would progressively migrate broadband customers on its copper and cable networks to NBN Co.
The telco will also be paid $2 billion in compensation to cover costs associated with regulatory reform of the sector.
Deal 'to save billions of dollars'
The federal government says the deal will save billions in terms of the network's original $43 billion price tag, and see the project completed ahead of its eight-year timetable.
NBN Co chief Mike Quigley said the agreement represented "a significant saving" in terms of the project's ultimate cost by avoiding duplication and making the rollout more efficient. "It's obviously a good outcome in that regard," he said.
The agreement, signed off in Canberra on Sunday, must first be put to Telstra shareholders.
Telstra welcomes deal
Telstra chair Catherine Livingstone described the development as a "significant milestone" after a year of what were complex negotiations.
"This agreement reflects a commitment by all parties to reaching a mutually beneficial outcome for Telstra investors, customers, employees and the industry," she said.
Crucially, the deal would allow Telstra to bid for lucrative next generation wireless spectrum which the government had threatened to exclude the telco from if it did not agree to structurally separate its retail and wholesale businesses.
Ms Livingstone said the company had received written confirmation from the prime minister that it would be permitted to bid for the spectrum and that sufficient regulatory certainty would be provided on "a range of matters".
In addition to requiring shareholder approval, there are a range of conditions attached to the agreement, including the passage of legislation surrounding reform of the telco sector and approval from the Australian Competition and Consumer Commission.
"Accordingly, there can be no guarantee at this time that the transaction will progress to completion," Ms Livingstone said.
PM confident plan will go ahead
But Prime Minister Kevin Rudd said he was confident the deal would be ratified.
"Both Telstra, in my discussions with them, and NBN Co, in my discussions with them ... are confident this will occur," Mr Rudd said.
"The bottom line is: this is a better deal for the Australian taxpayer because we've struck an negotiated outcome with Telstra."
It's expected the announcement, made on Sunday when financial markets were closed, will prompt a rally in Telstra's share price when markets open on Monday.
Communications Minister Stephen Conroy said the agreement paved the way for Telstra to participate in the rollout of the network, and was likely to result in the telco becoming NBN Co's biggest customer.
"This will be delivering cheaper and faster services for all Australians," Senator Conroy said.
