Wednesday, 17 November 2021 12:25

Commerce Commission: New Zealand telcos and broadcasting transmission companies required to pay levy

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The New Zealand Commerce Commission has released its draft decision on the allocation of payments for the government’s Telecommunications Development Levy, proposing that Spark, Vodafone, Chorus, and 2degrees collectively pay approximately 88% NZ$10 million levy from 1 July 2020 to 30 June 2021.

The remainder of the levy is divided among other liable providers. The amount each provider pays is proportionate to their telecommunications revenue, according to the Commerce Commission.

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

The TDL is paid by companies earning more than $10 million per year from telecommunications services, including internet, mobile, and data services.

The draft determination comes after the Commission sought clarification from the High Court on whether businesses involved in the transmission of broadcasting signals are liable to contribute to the levy following amendments to the Telecommunications Act in 2018, which cleared an exemption for “broadcasting” from the definition of “telecommunication."

The High Court confirmed that apart from free-to-air broadcasters and satellite providers operating outside New Zealand, businesses involved in broadcasting transmission can be liable to pay the TDL.

Sky TV is now liable to contribute to the TDL for the first time and Kordia will pay a higher share than previous years.

A copy of the draft determination and information about how to provide a submission is available on the Commission’s website. Submissions are due by 5pm, 23 November 2021.

The Commission expects to release its final determination in December after considering feedback.

This first appeared in the subscription newsletter CommsWire on 9 November 2021.


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Kenn Anthony Mendoza

Kenn Anthony Mendoza is the newest member of the iTWire team. Kenn is also a contributing writer for South China Morning Post Style, and has written stories on Korean entertainment, Asian and European royalty, Millionaires and Billionaires, and LGBTQIA+ issues. He has been published in Philippine newspapers, magazines, and online sites: Tatler PhilippinesManila BulletinCNN Philippines LifePhilippine StarManila Times, and The Daily Tribune. Kenn now covers all aspects of technology news for iTWire.com.

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