Home Telecoms & NBN Commerce Commission makes final decision on NZ telco contributions to development levy

Commerce Commission makes final decision on NZ telco contributions to development levy

New Zealand telcos Spark, Vodafone, Chorus and 2degrees Mobile are set to pay more than 90% of the country’s $50 million telecommunications development levy which covers the operation of telecommunications infrastructure and services that are not commercially viable.

The payment obligations of 16 of the country’s telcos towards the levy have been outlined in a final decision by the competition regulator The Commerce Commission following its initial draft decision announced in October.

Under this final decision, the contribution of telco Compass has now increased after the company provided further information on its relevant revenue.

The Commission says the remaining 15 providers  have seen their allocations marginally reduce as a result of the adjustment to the Compass contribution.

As well as covering the cost of commercially unviable services, the levy is also used to pay for 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.

The levy equates to about 1% of telecommunications services revenue earned by telecommunications services providers in New Zealand and is paid by providers earning more than $10 million per year from operating a telecommunications network.

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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).