Telstra and NBN Co resolve $200 million dispute

CPI-related dispute settled out of court

A disagreement over interpretation of the $11 billion agreement between NBN Co and Telstra that spilled into court has been resolved.

The two companies yesterday had been due to appear in the NSW Court of Appeal over the dispute, which relates to when consumer price index (CPI) adjustments apply to the agreement between the two companies.

Instead Telstra and NBN Co engaged in a round of out of court negotiations.

The dispute was estimated to be worth up to $200 million over 30 years.

NBN Co revealed in August it would appeal the original Supreme Court ruling that favoured Telstra.

"The parties have reached agreement on a commercial resolution to this matter," a spokesperson for Telstra told Computerworld Australia this afternoon.

The telco would not offer details on the nature of the resolution.

A renegotiated Telstra-NBN Co agreement, which governs the migration of Telstra customers onto the NBN and NBN Co access to some of the telco's infrastructure, was signed in December.

However, the new agreement did not resolve the CPI-related dispute between the parties, which revolved around the starting date for indexed increases in payments to Telstra.

NBN Co has been approached for comment.

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