Thursday, 24 October 2019 12:30

NZ Commerce Commission releases draft decision on telcoms levy

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New Zealand’s competition regulator The Commerce Commission has released its draft determination on how much 16 telecommunications providers will each pay towards the Government’s $50 million Telecommunications Development Levy(TDL) for 2018/19.

The draft determination, which gives no figures for the levy payments by individual telcos, was released on Thursday, and provides that the four telecoms providers - Spark, Vodafone, Chorus, and 2degrees - will collectively pay more than 90% of the $50 million levy.

The TDL was established by legislation in June 2011 and is currently set at $50 million a year but will drop to $10 million in 2020.

And the Commission says that the growing uptake of fibre services means that the contributions to the TDL by Enable, Northpower and Ultrafast Fibre have significantly increased.

The levy - about 1% of telecommunications services revenue - is paid by providers earning more than $10 million per year for providing telecommunications services, including internet, mobile, and data services.

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.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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