Under Connect Australia, Porter said IT Minister Senator Helen Coolan challenged industry to think big through partnerships and cooperation.

He said this proposal has a bigger broadband picture in mind, over and above individual commercial aspirations.

"The proposal is an opportunity to build the nation's first truly competitive alternate broadband infrastructure that will benefit all Australians," Porter said.

Austar has invested $50 million in a WiMax-based broadband network while Unwired expects to cover 45 percent of the Australian population with WiMax by 2008.

Unwired CEO David Spence said their networks are unique because they have been purpose built for data, voice and the high-peed services of the future.