Draft decision on contributions to $50 million telecommunications development levy
Published24 Oct 2019
The Commerce Commission today 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 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 telecommunications services revenue, is paid by providers earning more than $10 million per year for providing telecommunications services, including internet, mobile, and data services.
Today’s draft determination provides that Spark, Vodafone, Chorus, and 2degrees will collectively pay more than 90% of the $50 million levy.
Growing uptake of fibre services means that the contributions to the TDL by Enable, Northpower and Ultrafast Fibre have significantly increased.
A copy of the draft determination can be found here.
The Commission invites submissions on its draft determination via email to email@example.com by 5pm, 7 November 2019. The Commission expects to release its final determination in December.
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. The Commission is required to prepare an annual TDL liability allocation determination in accordance with the Telecommunications Act 2001. The legislation requires a draft determination to be prepared and for submissions to be allowed on the draft before a final determination is prepared.
More information on the TDL is available on our website.