NBN Co and Telstra have begun out-of-court negotiations over a dispute between the application date of CPI adjustments on the standing agreement between the two companies.

The $11 billion agreement was signed in June 2011 by each company, which governs the migration of Telstra’s customers onto the National Broadband Network and NBN Co’s access to Telstra infrastructure for the rollout of the NBN.

The dispute has arisen over the application date of consumer price index (CPI) adjustments (to be applied each year from the first of January), with Telstra stating that CPI increases should take effect from 1 January 2012. NBN Co has argued that the agreements were only finalised in March 2012, therefore CPI adjustments should begin from 1 January 2013.

The application of consumer price index adjustments upon the agreement is estimated to be worth up to $200million over the next 30 years.

With the Supreme Court no longer listing the dispute as a matter of consideration, it will be up to NBN Co and Telstra representatives to seek a resolution.


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