The Commerce Commission has released a discussion document explaining how it intends to run the Telecommunications Development Levy (TDL), the system under which telcos contribute to helping the government fund New Zealand’s telecommunication infrastructure.

The TDL was introduced last year with the passing of the Telecommunications (TSO, broadband and other matters) Amendment Act 2011. The system replaces the Telecommunications Service Obligations (TSO) scheme.

Telecommunications Minister Dr Ross Patterson says the TDL will apply to more companies and services than the TSO.

"This is because new definitions of ‘public telecommunications network’ and ‘qualified revenue’, which are used to determine liability, will capture a broader range of revenue generating services such as video-on-demand programming,” Patterson says.

According to the discussion document, the Commerce Commission is required to once a year complete a Liability Allocation Determination (LAD) identifying liable parties. To be deemed liable, the party must have earned more than $10 million from providing telecommunications services in New Zealand in the previous year.

Each party’s liability will be determined based on financial information provided to the Commerce Commission.

Comments on the system can be made to the Commerce Commission for the rest of this month; go here to download a copy of the document.