Telstra has accused the federal Opposition of "deliberately misleading and misinforming to the public" in its attempts to revive community concern over the telecommunications company's controversial use of pair gain technology.

According to the Shadow Minister for Information Technology, Senator Kate Lundy, around 2,000 people have written to her complaining about the use of pair gains technology. The technique, which allows Telstra to provide multiple telephone lines over a single copper connection, is associated with diminished data speeds in outlying and regional areas.

"People think they have been buying a new line when they are only buying a dial tone, and in an age where any phone line may also be used as a data connection," Lundy said. "Telstra have also withheld information about the nature of their pair gain connection."

However, Telstra flatly denies Lundy's allegations, information regarding how services were provided to customers was readily available to the public.

"If customers ring up and want to know how their service is provided we tell them," the spokesperson said. "We pointed this out in June when Lundy started to spread misinformation about how services are delivered, and how our network is put together."

Telstra also defended the use of pair gain technology, the spokesperson said such a connection is often the only option for customers who live more than 3.5 kms from an exchange, as copper-based data services diminish at greater distances.

"If you are on a very long copper run you would be better to run on a pair gain in some circumstances," said the spokesperson. "Our telephone service was developed for voice, we stress that data transfer speeds will vary, we won't guarantee the availability of broadband or ADSL in all areas and if customers ring up and want to know how their service is provided we tell them."

A recent ACCC investigation into the procedure found that Telstra's conduct did not raise any specific trade practices issues, however the corporate watchdog conceded the telecommunications company's information provision regarding the practice had lead to "customer confusion".

"The Commission has worked closely with Telstra to improve the level of information that Telstra provides to consumers regarding these network issues," a spokesperson for the ACCC said.

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