TSO costs reduced

14 May 2008

New Zealand’s Commerce Commission has reduced the size of the Telecommunication Service Obligation (TSO) charge for 2005, having decided to remove mobile technologies from its cost model. Telecom New Zealand will receive a TSO payment of NZD57.3 million (USD47.5 million) for 2005, down from the original draft assessment of NZD71.4 million, which helps compensate the telco for the costs of providing telecoms services to unprofitable rural areas. The TSO is paid for by Telecom and the country’s larger alternative operators such as Vodafone and TelstraClear.

New Zealand, Spark