Telstra suing NBN Co: report

Telstra Corporation (TLS) is suing NBN Co in the New South Wales Supreme Court over a $100 million dispute over payments related to its $11.2 billion agreement with the company, The Australian Financial Review reports.

According to the newspaper, a Telstra spokesperson confirmed the legal action but said the impact of any outcome would be significant, but from a market point of view.

The $11.2 billion deal between Telstra and NBN Co gives the latter rental access to former extensive network of underground pits containing the telco's phone network.

The AFR reports Telstra believes payments should be back-dated to 2011 when the parties agreed to a deal, while NBN Co insists payments should be indexed only to 2012 when Telstra shareholders approved the deal.

If successful, the newspaper reports Telstra could be awarded more than $100 million.