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Commerce Commission finalises telco development levy

The Commerce Commission has today released its final decision on the allocation of payments for the Government’s $11.25 million Telecommunications Development Levy (TDL) for 2022/23.

Under the Telecommunications Act, the Commerce Commission has responsibility for determining each liable provider’s share of the TDL. Providers are liable when their gross revenues from telecommunications services over a public telecommunications network are more than $10 million per year, and the amount each liable provider pays is proportionate to their qualified revenue from these services in the relevant TDL year.

The funds collected through this levy are used 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.

Spark NZ, One NZ, Chorus, and 2degrees will collectively pay approximately 87% of the $11.25 million levy for the year from 1 July 2022 to 30 June 2023. The remainder of the levy is divided among other liable providers.

A copy of the final determination is available on our website.

 

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