Commerce Commission divvies up $50m Telecoms Development bill

Spark, Vodafone, Chorus, and 2degrees Mobile paying more than 90 percent

The Commerce Commission has released its draft decision dividing up the $50m Telecommunications Development Levy for 2016/17 between the 16 telecommunications providers required to contribute.

It shows Spark, Vodafone, Chorus, and 2degrees Mobile paying more than 90 percent.

The levy, which represents about one percent of telecommunications services revenue, is paid by providers earning more than $10m per year from operating a telecommunications network and providing internet, mobile and data services to consumers.

Under the draft decision, Spark will contribute 35.34 percent of the total, Vodafone 26.34 percent, Chorus 22.60 percent, 2degrees 8.38 percent, Vocus 3.15 percent. No other provider will contribute more than one percent.

The levy is used to subsidise telecommunications infrastructure and services that are not commercially viable. These include the relay service for the deaf and hearing-impaired, broadband for rural areas, and improvements to the 111 emergency service.

The levy was established by legislation in June 2011 and is set at $50m a year until 2019. It replaced the Telecommunications Service Obligations (TSO) liability allocation process and streamlined the process for industry contributions to the TSO, to broadband for rural areas, and to other government-led improvements to New Zealand's telecommunications infrastructure.

Submissions on the draft are due by 9 November and the Commission expects to release its final decision in December.


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