NZ Commerce Commission reveals draft levy contributions

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New Zealand’s Commerce Commission has released its draft determination on how much 16 telecoms providers will each pay towards the government’s NZD50 million (USD31.8 million) Telecommunications Development Levy (TDL) for the period covering 1 July 2018 to 30 June 2019.

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.

The levy, about 1% of telecoms services revenue, is paid by providers earning more than USD10 million per year for providing telecoms services, including internet, mobile, and data services. The draft determination provides that Spark, Vodafone, Chorus and 2degrees will collectively pay more than 90% of the total levy, while the growing uptake of fibre services means that the contributions made by Enable, Northpower and Ultrafast Fibre will significantly increase.

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