Calgary-based Axia NetMedia, which has built broadband networks in Canada and France, yesterday confirmed it would bid to build the network after its chairman and chief executive, Arthur Price, gave evidence to a Senate select committee hearing on the project.

Meanwhile, on the eve of the bid deadline, Telstra shifted its attack from the Federal Government to its chief rival for the $4.7 billion in taxpayer funds up for grabs — the Optus-led Terria consortium.

"Telstra wants to build the national broadband network," Telstra spokesman David Quilty said.

"We are ready to go. We have been doing the planning for three years and are best placed to build a world-class national broadband network."

Mr Quilty said Terria — which also includes iiNet, Internode, Macquarie Telecom and Primus — had not detailed how it would fund its bid and there was a risk taxpayers would have to bail the consortium out of financial difficulty if it was awarded the contract.

But Optus director of government and corporate affairs Maha Krishnapillai said Optus' parent Singtel was the world's 12th largest telco, with a strong balance sheet, and had committed to the project.

"We have a fully funded, technically appropriate network proposal for Government, which ultimately will come down to the political will of the Government to take on historically what has been a dominant position of Telstra in this sector," he said.

Terria argues that the network should not be operated by a company with retail operations, but Telstra has threatened not to bid unless the Government ruled out it having to structurally separate.

Shadow Minister for Broadband Nick Minchin said the tender process would be "a complete joke and failure" if Telstra did not bid.

Last week, Communications Minister Stephen Conroy said the Government was focused on outcomes in the NBN process, rather than "regulatory totems".

"We remain open-minded on the regulatory tools that may achieve our stated goals and to provide investment certainty to all players in the market," he said.

"Our view is that prescribing specific regulatory settings at the start of this process would have unnecessarily narrowed the scope for innovation and competitive tension."

Construction of the network, which must serve 98pc of the population, is expected to start late next year.