Telstra, NBN Co resolve $200m pricing fight

By on
Telstra, NBN Co resolve $200m pricing fight

Secretive out of court settlement reached.

Telstra and NBN Co have settled a pricing dispute worth $200 million out of court after pulling out of scheduled court hearings this week.

A Telstra spokesperson today confirmed the pair had reached a "commercial resolution" on when the consumer price index for payments covered by the 2011 definitive agreements should kick in.

The difference between the dates at which NBN Co and Telstra argue the CPI should apply is worth around $200 million.

The Telstra spokesperson declined to comment on how the issue had been resolved. 

NBN Co did not respond to request for comment.

The telco last year won its legal fight with NBN Co over the matter, after the NSW Supreme Court ruled that that the CPI, which is refreshed each year in January, should apply for payments effective from January 1 2012, given that the NBN Co contract was signed in 2011.

But NBN Co appealed the decision late last year, arguing the CPI should apply from January 1 2013 given the Australian Consumer and Competition Watchdog-approved structural separation undertaking commenced in March 2012.

The pair were due to appear in court this week as part of NBN Co's appeal suit, but pulled out as part of efforts to solve the matter out of court.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © . All rights reserved.

Most Read Articles

Log In

Username / Email:
  |  Forgot your password?