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Final decision on what major telcos contribute to $50 million development levy

7 December 2017

The Commerce Commission today released its final decision on how much 16 telecommunications providers will each pay towards the Government’s $50 million Telecommunications Development Levy (TDL) for 2016/17.

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. 

Today’s decision sees a minor adjustment to the Commission’s draft decision released in October. 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. 

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

The 2016/17 TDL final decision can be found here. An infographic on the levy can be found here

Background

The Telecommunications Development Levy (TDL) was established by legislation in June 2011 and is set at $50 million a year until 2019. The Commission is required to prepare 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.

More information on the TDL is available on our website.