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ComCom makes final decision on what major telcos will contribute to $50m levy

07 Dec 17

The Commerce Commission has made its final decisions on how much the nation’s major telecommunications providers will pay towards the Government’s $50 million Telecommunications Development Levy (TDL) for 2016/17.

The Commerce Commission published its draft decision back in October stating that  four of New Zealand’s largest telcos will pay 90% of this fee, and this morning the Commission confirmed this decision.

Collectively Spark, Vodafone, Chorus and 2degrees Mobile will pay more than 90% of the $50 million levy.

In total, 16 telecommunications providers will contribute to the fee.

However, today’s decision does include a minor adjustment to the Commission’s October draft decision.

Compass’ contribution has now increased after providing further information on its relevant revenue. The remaining 15 providers have seen their allocations marginally reduce as a result.

The Government uses the annual levy to pay for telecommunications infrastructure and services that are not commercially viable.

This includes the telephone relay service for the deaf, hearing and speech-impaired, broadband for rural areas, improvements to the 111 emergency service, and providing greater mobile coverage in mobile blackspots.

The TDL was established by legislation in June 2011 and is set at $50 million a year until 2019. The Commission calculates how the TDL is split between larger telcos and prepares an annual TDL liability allocation determination in accordance with the Telecommunications Act 2001.

The levy equates to about 1% of telecommunications services revenue earned by telecommunications services providers in New Zealand.

The levy is paid by providers earning more than $10 million per year from operating a telecommunications network.

This includes providing internet, mobile and data services to consumers.

Some providers pass the levy contribution onto consumers through a charge on their monthly bills.

The 2016/17 TDL final decision can be found here.

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