Telstra has hit back at accusations from rivals that its decision to turn on ADSL2+ in 900 exchanges across Australia was the latest example of the telco "losing a game of chicken with the government".

Telstra announced the switch-on of the exchanges at an event in Canberra yesterday, with Broadband Minister Stephen Conroy and Prime Minister Kevin Rudd in attendance. While the exchanges in question had been ADSL2+ enabled for some time, the telco had not switched them on, saying it believed the ACCC might mandate that its rivals be allowed to resell the service.

Yesterday, the telco said it had received assurances from the government that the regulator would not force it to open its network. Rivals, however, said there has been no change in government policy and that Telstra changed its mind in order to rebuild its relationship with the government ahead of the impending fibre-to-the-node rollout.

A spokesperson for the telco said that Telstra had sought assurances from the former Communications Minister, Helen Coonan but had not received them and is now satisfied with the government's position on the matter.

"There is a big difference between being given an assurance by a bureaucrat and by a Minister and that's our point. We asked the former Minister to give us the assurance we were wanting and that was not forthcoming. To have a Minister come out with a Prime Minister in attendance and give you that assurance is a massive difference," the spokesperson said.

David Kennedy, research director for Ovum, said that yesterday's announcement could mark the start of better relationship between the government and Telstra.

"The new government is determined to promote wider access to fast broadband, and is prepared to directly address some of Telstra's concerns to achieve this result. The focus is on outcomes, not processes. The fact that Telstra felt compelled to seek this government assurance, and that the government responded, could reflect a new and more positive relationship between Telstra and the government," Kennedy said in a research note.

However, one of Telstra's rivals had already contacted the ACCC to request the regulator "declare" the services -- that is, mandate Telstra wholesale the service to other broadband players. Primus CEO Ravi Bhatia said that the declaration of the services was necessary to boost competition in the marketplace and said he will be writing to Minister Conroy on the matter.