Telecom gets NZD40m bill for TSO

17 Sep 2008

Telecom New Zealand is facing a NZD40 million (USD26.5 million) bill to cover the cost of the telecommunications service obligation (TSO) for the year to end-June 2006. The country’s Commerce Commission has announced that the cost of the TSO for 2005/06 will be NZD58.2 million, with Telecom liable to pay around 69% of this. The TSO is paid by major telcos – Vodafone and TelstraClear are the main contributors besides Telecom – to help subsidise the cost of providing telecoms services in unprofitable rural areas. The Commission recently set the final TSO bill for the 2004/05 year at NZD52 million.

New Zealand, Spark