Telstra is suing NBN for $100m

AUSTRALIA'S biggest telco is suing the National Broadband Network claiming it owes them fees worth $100 million.

Telstra is suing the NBN over a payment timing dispute. Picture: ThinkStock

IT HAS been a bad week for the NBN.

Yesterday it reported a $932 million operating loss and today it has been revealed that it's being sued by Telstra.

The Australian Financial Review reported that the telco is suing the NBN for around $100 million in payments for its pits and ducts.

It took $11.2 billion and two years to negotiate the deal whereby the NBN was given rental access to the telco's network of pits and ducts that house its phone network. The NBN will be using Telstra's pits and ducts to connect homes to its fibre-optic cable.

The agreement was first signed in 2011 and it was finalised and commenced in March 2012.

Telstra claims that the payments should date back to 2011 when the companies first agreed on the deal, but the NBN claims they should only date back to 2012 when the contract was formally agreed upon.

"We have commenced legal proceedings with NBN Co over when CPI adjustments should start to apply under the NBN Definitive Agreements," said Telstra spokeswoman Nicole McKechnie.

"We have one take on the contract and NBN Co has another."

NBN Co' declined to comment.

The case comes as Telstra and NBN Co get ready to renegotiate over the $11.2 billion contract.