Australia govt to launch new firm to build broadband

CANBERRA, April 7 (Reuters) - Australia will launch a new company, majority owned by the government, to build a national high-speed broadband network, rejecting bids in a tender process it launched last year.

The government had been set announce the winner of a tender to build the network, which had been expected to cost around A$10 billion ($7 billion).

The government will sell its interest in the new entity after five years, the prime minister said on Tuesday. It said all telecoms firms, including dominant provider Telstra Corp (TLS.AX), will be able to participate in the project. ($1=A$1.40) (Reporting by Rob Taylor)