Broadcaster Seven Network has stepped up its attack on Singapore Telecommunication's bid for Cable & Wireless Optus, saying it was not in Australia's national interest.
Seven described Singapore as an "extremely intrusive and repressive authoritarian state" in a supplementary submission to Australia's Foreign Investment Review Board (FIRB) calling for SingTel's AU$17 billion takeover bid to be blocked.
"The practices and governance of SingTel and the Singapore government, in particular that government's flagrant and systemic use of technology to collect data for its own purposes, at the very least, raise many serious concerns about its control of a vital Australian telecommunications asset," Seven said in its submission.
Seven, which spoke out against the bid in a preliminary submission, said it had acquired further information on the "nature and governance strategies" of SingTel, which is 78 percent owned by the Singapore government.
The broadcaster, controlled by Australian media tycoon Kerry Stokes, outlined alleged incidents of phone-tapping in its submission.
It also said SingTel's bid represented the "third major assault" by Singapore government-controlled companies on Australian assets.
Industry sources said Seven's opposition was connected to its pay-TV arm C7, which is negotiating to extend its contract with the C&W Optus pay-TV network. The contract expires at the end of this year.
SingTel overcame one major hurdle earlier this month after reaching a deal with the Australian Defence Force aimed at easing security concerns related to a defence satellite joint venture with C&W Optus.
FIRB will make a recommendation on the SingTel bid to Australian Treasurer Peter Costello, but has until September to issue a ruling after seeking an extension period.
SingTel's offer for C&W Optus, Australia's second largest telco, closes on August 3 but can be extended.
C&W Optus shares ended five cents lower at AU$3.45 on Wednesday, while Seven lost 17 cents to AU$7.70 in a slightly weaker overall market.
