Thursday, 22 October 2020 11:57

NZ telcoms regulator determines allocation of $10 million development levy amongst telcos

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New Zealand’s major telcos Spark, Vodafone, Chorus, and 2degrees will collectively pay approximately 90% of the $10 million Telecommunications Development Levy (TDL) levy to be imposed on the telecommunications industry by the country’s competition regulator The Commerce Commission.

The allocation of payments for each of the telcos has been proposed by the Commission in a draft determination released on Thursday, with Spark, Vodafone, Chorus, and 2degrees collectively to pay the 90% of the levy, with their payments proportionate to each of their telecommunications revenue.

The remainder of the levy will be divided among other liable providers.

The levy is paid by providers earning more than $10 million per year from telecommunications services, including Internet, mobile, and data services.

The Telecommunications Development Levy (TDL) for 2019/20 is applied by the Commission to pay for telecommunications infrastructure and services that 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.

Submissions on the draft determinationare due by 9 November 2020, with the Commission expecting to release its final determination in December.

The Commission expects to release its final determination in December.


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