The Communications Minister has called for negotiations to continue between NBN Co and the companies in charge of the optical roll-out in Tasmania, saying that it takes two to tango over contracts.

Mr Turnbull says his claim before the election in September that NBN Co would honour its existing contracts still stands, but that it is also contingent on the contacts themselves, which the Minister says he has not actually seen.

Mr Turnbull now says that if Visionstream, the company contracted to install NBN services to Tasmania, does not pick up its pace then the contract may not be honoured.

“Visionstream has asked the NBN Co to substantially increase the rate for this work - in other words it has asked for more money to complete the project,” federal Communications Minister Malcolm Turnbull said in a statement.

“I am advised by NBN Co that Visionstream has slowed down its work considerably... [and] that Visionstream now complains that the rate to which it previously agreed is too low and is not enough to enable it to get the job done.”

“Honouring an agreement means complying with its terms, but for a contract to be performed both sides have to be prepared to do that,” he said.

Turnbull said that NBN Co will now enter into commercial discussions with Visionstream about the matter, with the rollout in Tasmania reportedly receiving close attention in the upcoming Strategic Review.