It seems that the Federal Government will not be able to win enough votes in order to peacefully pass the legislation aimed at the split of Telstra.

With the passing of the bill, the Government would be allowed to restrict Telstra's ability to expand if the company refuses to establish its wholesale and retail units as two different divisions.

While Nationals Senators Barnaby Joyce and Fiona Nash had suggested that they are keeping an "open mind" as far as the bill goes, the Coalition party room today unanimously decided to oppose the legislation.

A vote of no has been confirmed by the Family First Senator Steve Fielding as well, leaving the Government greatly short of a majority.

Tony Smith, the Opposition's Communications spokesperson, has stressed that the Communications Minister Stephen Conroy is using the bill as a means to blunt out all competition to his new high speed broadband network, aimed at providing speedy connections to 90% of the country's population.