Telstra has agreed to split into three parts prior to the government selling its remaining 51.8 percent share in the telco.
A draft separation plan was released by Telstra today which is a precondition for its full sale expected later this year.
Under the plan the three operational units will cover wholesale, retail and network services.
It includes network pricing and conditions for other telecommunications companies to ensure Telstra doesn't disadvantage rivals.
The key network services unit would be in charge of fault detection, handling and repair and hooking up phones.
Telstra has also proposed to create a new position, known as the director of equivalence, who would monitor the company's compliance with the plan and report to the government. The draft plan is now open until March 5 for public comment.
After the 30 days of consultation, Telstra will submit the final plan to IT and Communications Minister Helen Coonan.
Telstra is also in the process of shedding 12,000 jobs over the next five years.