Commerce Commission reveals draft Telecommunications Development Levy contributions

22 Oct 2020

New Zealand’s Commerce Commission has released its draft determination on the allocation of payments for the government’s NZD10 million (USD6.63 million) Telecommunications Development Levy (TDL) for the period covering 1 July 2019 to 30 June 2020. The TDL is paid by providers earning more than NZD10 million per year from telecommunications services, including internet, mobile, and data services. The government uses the funds collected by this levy to pay for telecommunications infrastructure and services that are not commercially viable, including the relay service for the deaf and hearing-impaired, broadband for rural areas, and improvements to the 111 emergency service.

The draft determination proposes that Spark, Vodafone, Chorus, and 2degrees collectively pay approximately 90% of the NZD10 million levy, with the remainder divided among other liable providers. The amount each liable provider pays is proportionate to their telecommunications revenue. The Commission expects to release its final determination in December.