Rural Broadband extension secured
The passing of the Telecommunications (Development Levy) Amendment Levy Bill underscores the Government’s commitment to
extending enhanced connectivity to regional New Zealand, says Communications Minister Amy Adams
The Bill passed last night with support from all parties, other than Labour.
“The extension of the Telecommunications Development Levy (TDL) will fund the $100 million expansion of fast, reliable
broadband to the regions. It will also establish a $50 million fund to extend mobile coverage in black spot areas such
as along main highways and in popular tourist destinations,” says Ms Adams.
“While the Government has made excellent strides with the first phase of the Rural Broadband Initiative, we want to do
even more to extend better broadband to rural New Zealanders.”
Nearly 325,000 households and businesses can now connect to RBI services.
Ms Adams says the passing of the Bill through all stages as part of Budget legislation provides stability and certainty
to the telecommunications industry and consumers.
“The setting of the levy allows the Government to get on with extending rural broadband to the areas that sit outside
the UFB footprint, boosting connectivity across New Zealand, and creating jobs for Kiwis. Next steps of the RBI
extension require the funding to be in place and the passing of this legislation enabled this to happen without delay.
The Bill continues the levy at its current level of $50 million to 2018/19. It was previously set to drop to $10 million
per annum in 2016/17. This will now occur in 2019/20.
For a consumer on a $19 basic prepaid mobile phone package, the monthly contribution to the TDL is 22 cents. This is the
equivalent of the cost of a single text message. The telecommunication companies have incorporated the levy at this
level into their costs since 2011, so there is no justification for prices to rise as a result.
“Continuing the TDL at its current level until 2019 will ensure the telecommunications industry invests in rural and
remote areas so the connectivity needs of all New Zealanders can be meet irrespective of where they happen to live,”
says Ms Adams.
ENDS