Commission issues final determination for Telecommunications Development Levy

The Commerce Commission today released its final determination for the amount 22 telecommunications providers will pay towards the $50 million Telecommunications Development Levy (TDL) for 2012/13.

The levy is paid by companies, or groups of companies, who earn more than $10 million per year from operating a component of a public telecommunications network (fixed, mobile or wireless). The levy makes up about 1% of the companies’ revenue.

The government uses the annual levy to pay for telecommunications infrastructure including the relay service for the deaf and hearing-impaired, broadband for rural areas, and improvements to the 111 emergency service.

The Commission determined the final allocation results after reviewing the telecommunication companies’ compliance with revenue reporting.

The method used is consistent with that in the revised draft determination in April 2014 and for the 2011/12 determination.

To read the final allocation visit the 2012/13 TDL Liability allocation determination page.

Background

The Telecommunications Development Levy was established by legislation in June 2011. The levy is set at $50 million a year until 2016, at which time it will be reduced to $10 million.

The TDL replaces the Telecommunications Service Obligations (TSO) liability allocation process and streamlines the process for industry contributions to the TSO, broadband for rural areas, and other government led improvements to New Zealand's telecommunications infrastructure.

The Commission is required to prepare an annual TDL liability allocation determination in accordance with subpart 2 of Part 3 of the Telecommunications Act 2001.