Issued 26 October 2017
Release No. 43
Draft decision on what major telcos will contribute to $50m development levy
The Commerce Commission today released its draft decision on how much 16 telecommunications providers will each pay
towards the Government’s $50 million Telecommunications Development Levy (TDL) for 2016/17.
The Government uses the annual levy to pay for telecommunications infrastructure and services which are not commercially
viable, including the relay service for the deaf and hearing-impaired, broadband for rural areas, and improvements to
the 111 emergency service.
Today’s draft decision determines that Spark, Vodafone, Chorus, and 2degrees Mobile will collectively pay more than 90%
of the $50 million levy.
The levy, about 1% of telecommunications services revenue, is paid by providers earning more than $10 million per year
from operating a telecommunications network, including providing internet, mobile and data services to consumers.
The Commission invites submissions on its draft decision via email to telco@comcom.govt.nz by 5pm, 9 November 2017. The
Commission expects to release its final decision in December.
The 2016/17 TDL draft decision can be found here.
Background
Telecommunications Development Levy
The Telecommunications Development Levy (TDL) was established by legislation in June 2011 and is set at $50 million a
year until 2019. The Commission is required to prepare an annual TDL liability allocation determination in accordance
with the Telecommunications Act 2001.
The TDL replaced the Telecommunications Service Obligations (TSO) liability allocation process and streamlined the
process for industry contributions to the TSO, broadband for rural areas, and other government-led improvements to New
Zealand's telecommunications infrastructure.
In September 2017 the Commission released its 2016/17 final determination on the cost of the Telecommunications Relay
Service (TRS) operated by Sprint International New Zealand for the hearing and speech impaired. The Commission’s final
calculation has determined that the cost for that period is $2.5 million. This sum is payable by the Government out of
the $50 million levy.
ends