Kevin Rudd has escalated his confrontation with News Corp Australia, “questioning” whether chairman Rupert Murdoch’s “opposition” to Labor’s National Broadband Network was driven by commercial self-interest and sarcastically noting the “strange coincidence” that Murdoch’s views were the same as his “mate” Tony Abbott.

“He’s made it fairly clear he would like to give us the old heave-ho and get his mate Mr Abbott in,” Rudd said in Brisbane.

“It’s a free country. Mr Murdoch is entitled to his point of view. He says we can’t afford a national broadband network which delivers fibre to the home and fibre to the business premises. Remarkably it seems to be the same policy as Mr Abbott’s. It’s a strange coincidence there.”

Asked about the allegation that News Corporation’s views about the government were in part driven by a belief that the NBN represents a threat to its Foxtel business, Rudd said it was ‘’for others to ask the question why Mr Murdoch really doesn’t want the national broadband network to be connected to everyone’s home and everyone’s small business premises”.

But then he repeated the allegation as a question. “Does he sense it represents a commercial challenge to Foxtel, which is a major cash cow for his company or not? But I’d rather hear from him or hear from his corporation on those questions.

“In terms of his determination to see Mr Abbott elected as prime minister and his determination to see the end of myself, it’s a free country, he’s entitled to his view. I’m sure he sees it with crystal-clear clarity all the way from the United States,” Rudd said.

A spokesperson for News Corporation said any suggestion that their editorial position was based upon the commercial interests of Foxtel demonstrated "a complete ignorance of both our business and of Foxtel".

“The general News business would benefit from faster national broadband speeds and Foxtel will benefit as it is be able to offer more choice and new services to consumers," the spokesperson said.

"Furthermore, Foxtel faces broadband competition with or without a national broadband network - of any type or speed.

“Our mastheads have, quite rightly, scrutinised a massive piece of government spending which is devoid of a cost-benefit analysis. But that does not equate to being against faster internet speeds – indeed The Australian in particular has constantly editorialised in favour of high-speed broadband – it is great for productivity and for our own business.”

Rudd is determined to “call out” what Labor strategists believe is a concerted campaign, waged in particular by the Daily Telegraph, which is widely read in the crucial western Sydney electoral battleground, and the Courier Mail in Rudd’s home state of Queensland, where Labor must gain seats if it is to have any chance of victory.

After he regained the Labor leadership, Rudd spoke to all newspaper editors including those at News Limited and appeared to be trying to build bridges with the organisation. But Labor strategists are understood to have concluded several papers were absolutely intent upon changing the government when they gave little or no credit to Labor’s last-minute policy shifts on asylum and the carbon tax. Some believe the “hostile views” of the Daily Telegraph and the Courier Mail are targeted to influence the election.

The spat began on Monday and continued on Tuesday on Twitter, with Murdoch tweeting that the NBN would in fact be good for Foxtel. “Oz politics! We all like ideal of NBN, especially perfect for Foxtel. But first how can it be financed in present situation?” he asked.

The deputy prime minister, Anthony Albanese, fired back “@rupertmurdoch our #NBN plan will deliver affordable high-speed broadband to every home and business and produce a solid rate of return” and Rudd quickly backed what he called “Albo’s ripper tweet”. He said: “100% agree Albo. That might be Mr Murdoch's view in New York. Here in Oz I want high speed NBN for all, not just some. KRudd.”

Rudd repeatedly referred to the fact that Murdoch “owned 70% of Australia’s newspapers”, but when asked whether he had any plans to change media ownership laws if re-elected, he said he did not.

In fact Labor abandoned planned changes to media regulation during the last parliament after vehement opposition from all media organisations and a lack of parliamentary support. Rudd’s own political adviser, at the time a consultant, said the planned changes had failed because Labor had not explained why they were needed.

Rudd began the strategy of “shining a light” on News Corp’s coverage after the Daily Telegraph began its election reporting with a front-page picture of the prime minister, and the banner headline: “Now you finally have a chance to kick this mob out.”

Rudd responded that it was “clear” Murdoch wanted the government removed and Abbott to become prime minister and said people needed to make up their minds about the paper’s “fairness and balance”.

A News Corporation spokesperson said on Monday the paper was exercising its right to editorialise as it chose.

“Every newspaper in the free world exercises its right to editorialise its position before an election, often on the front page. The Daily Telegraph supported Kevin Rudd in the 2007 election. This time it does not,” the spokesman said in written comments provided to Guardian Australia.

News Corporation has said it has 59% of Australian newspaper circulation, rather than 70%.

“Recent political commentary has perpetuated a long-standing myth that News Corp Australia owns 70% of Australian newspapers," a spokesperson said.

“News Corp Australia owns or co-owns 33% of all ABC and CAB audited newspapers in Australia.

“News Corp Australia newspapers are popular - over half the adult population of Australia chooses to read a News Corp Australia newspaper each week. This means that News Corp Australia has a 59% share of newspaper circulation."