Draft decision on allocation of $10 million Telecommunications Development Levy

The Commerce Commission has today released its draft determination on the allocation of payments for the Government’s $10 million Telecommunications Development Levy (TDL) for 2019/20.

The TDL is paid by providers earning more than $10 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 $10 million levy. The remainder of the levy is divided among other liable providers.

The amount each liable provider pays is proportionate to their telecommunications revenue.

A copy of the draft determination and information about how to provide a submission is available on our website.

Submissions are due by 5pm, 9 November 2020.

The Commission expects to release its final determination in December.

Background

The TDL was established by legislation in June 2011. Schedule 3B of the Telecommunications Act specifies that in 2020 the amount that telecommunications providers must contribute to the TDL is reduced from $50 million to $10 million a year.

The Commission is required to prepare an annual TDL liability allocation determination. The legislation requires a draft determination to be prepared and for submissions to be allowed on the draft before a final determination is prepared.

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