NBN Co and Telstra have now reached settlement over their $200million court battle over the application date of CPI adjustments.
The dispute over the application date of consumer price index (CPI) adjustments (to be applied each year from the first of January), saw Telstra stating that CPI increases should take effect from 1 January 2012. NBN Co argued that the agreements were only finalised in March 2012, therefore CPI adjustments should begin from 1 January 2013.
The initial $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 agreement has since been discarded with Telstra and NBN Co signing a new agreement that reduces the economic risk faced by Telstra and gives the ownership of existing copper phone lines and other networks to NBN Co.