TELSTRA has challenged NBN Co's pricing strategy and cast doubt over its financial targets, as manoeuvring around the $36 billion network enters a decisive phase.
In their first significant public clash since the signing of a landmark $11 billion agreement last year, Telstra argues that NBN Co could be overestimating its costs of capital, which could discourage competition and lead to higher prices for consumers, The Australian Financial Review reports.
The telco outlined its concerns in response to NBN Co's "special access undertaking", a document released in December that outlines the fibre-optic network's proposed regulatory framework and pricing plans until 2040.
The submission hints at underlying tensions between NBN Co and its soon-to-be largest customer. It is the first in a series of regulatory skirmishes that will help shape the telecommunications and internet industries for decades to come.
Telstra claims NBN Co's cost of capital will be 8.6 per cent, a figure that is too high for a public sector entity and that could lead to "unnecessarily high" broadband prices, which will be passed on to consumers.
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