With the launch of the Chancellor estate in University Hill Victoria, Telstra have informed the developer they will not be rolling out any more infrastructure in the estate.

University Hill's development's project director, MAB Corporation's Jason Woods, told iTnews that Telstra was engaged to provide a copper network to the community. Telstra rolled out copper to an office building and the first two stages of the town centre. But MAB's decision to allow Opticomm to lay fibre in a separate conduit in the community allegedly led Telstra to change its tune.

In other estates around the country this has also accured, with projects such as Prince Henry in New South Wales, Lochiel Park in SA, Fernbrooke in Queensland and Alamanda in Victoria. Once Telstra find out that another provider is rolling out their own network they refuse to continue the reticulation of their own network.

They also have not as yet negotiated with any of these providers for third party access to the networks, perfering instead to deliver telephone services by a wireless network (not 3G) and broadband via their 3G network.