Australia's third largest internet provider, iiNet, has pulled out of negotiations with the Federal Government over the proposed internet filtering trial.
Six internet providers have agreed to participate in the Government program to block websites such as those that show child pornography.
iiNet says it was prepared to participate in the trial, but has pulled out because it believes the Government's definition of "unwanted" websites is too vague.
iiNet's managing director Michael Malone says they only agreed to participate in the trial to demonstrate that the policy was fundamentally flawed, a waste of taxpayers' money and would not work.
He says constant changes in the policy, confused explanations of the purpose of the trial and recent revelations regarding the blacklist as clear indications that the trial is unnecessary.
"We are not able to reconcile participation in the trial with our corporate social responsibility, our customer service objectives and our public position on censorship," he said.
"It became increasingly clear that the trial was not simply about restricting child pornography or other such illegal material, but a much wider range of issues including what the Government simply describes as 'unwanted material' without an explanation of what that includes.
"Everyone is repulsed by, and opposed to, child pornography but this trial and policy is not the solution or even about that."
Mr Malone says the Government needs to rethink its approach.
"In reality, the vast majority of online child pornography activity does not appear on public websites but is distributed over peer-to-peer networks which are not and cannot be captured by this trial or policy," he said.
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