Telstra is taking NBN Co to court because of a dispute surrounding the $11.2 billion contract that allows NBN Co to lease Telstra's ducts and pit for the fibre-to-the-premises National Broadband Network (NBN) rollout.
Under the contract, NBN Co is required to pay Telstra to lease its infrastructure, as well as pay to move customers onto the NBN.
The new NBN
With the change of government in September came the change of the type of NBN, and the current state of the network is currently under review.
Under Communications Minister Malcolm Turnbull, NBN Co will need to renegotiate its contract with Telstra to move the NBN to a fibre-to-the-node model.
In its statement, Telstra was quick to point out that the timing of its action had nothing to do with the renegotiations.
Telstra did say, however, that "resolving this disagreement will help provide greater certainty, and as such may assist future policy discussions."
The case will be headed to the NSW Supreme Court on 8 November for a directions hearing.
- To keep up to date with the fluctuating state of our NBN, head on over to our guide to the NBN.