TelstraClear and Chorus announce TSO settlement

MEDIA STATEMENT - 9 July 2012

TelstraClear and Chorus announce TSO settlement

TelstraClear and Chorus have agreed settlement terms covering claims in respect of seven years of determinations under the previous Telecommunications Service Obligation (TSO) regime.

As a result of a Supreme Court decision late last year, TelstraClear sought partial repayments from Chorus in relation to TSO payments made for 2003/04 through to 2007/08 and a reduction in the payment for the outstanding 2008/09 and 2009/10 TSO years. Under the demerger arrangements, Chorus has assumed responsibility for any issues arising from the TSO litigation.

The settlement will bring about the full and final settlement of all claims between TelstraClear, Chorus and Telecom on TSO-related issues arising out of the Supreme Court decision.

The terms and amount of the settlement are confidential between the parties. Chorus had an accounting provision for the potential liability at the time of demerger. The parties have notified the Commerce Commission of the settlement.

ENDS.

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