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.