Commission Identifies Companies Liable For $50 Million Levy

Commission Identifies Companies Liable For $50 Million Telecommunications Levy

The Commerce Commission today released its draft determination of the amounts telcos will pay towards the $50 million Telecommunications Development Levy for 2011/12.

The government uses the annual levy to pay for telecommunications infrastructure including the relay service for the deaf and hearing-impaired, broadband for rural areas, and improvements to the 111 emergency service.

Telecommunications Commissioner Dr Stephen Gale said the levy—about one percent of revenue—is paid by companies, or groups of companies, earning more than $10 million per year from operating a component of a public telecommunications network (fixed or wireless).

Dr Gale said the levy allocation process was still relatively new and the draft determination explained the process used to identify ‘qualifying liable persons’ and the methodology used in the Commission’s calculations.

For the 2011/12 year, the Commission has identified 26 companies as likely to contribute.
Submissions on the draft determination are due by 5 June 2013.

A copy of the draft determination is available on the Commission’s website: http://www.comcom.govt.nz/tdl-2011-12/.

Background

What is the Telecommunications Development Levy?

The Telecommunications Development Levy was established by legislation in June 2011.

The companies contributing for the 2011/12 year:

Telecom Corporation of New Zealand Ltd, Telecom New Zealand Ltd, Vodafone New Zealand Ltd, Vodafone Fixed Ltd (previously Telstra Clear), Chorus Ltd and Chorus New Zealand Ltd, Two Degrees Mobile Ltd, Orcon Ltd, Teamtalk Ltd, Araneo Ltd, and Citylink Ltd, Vector Communications Ltd, FX Networks Ltd, Call Plus and 2 Talk Ltd, Bay City Communications Ltd, WorldxChange Communications, Snap Ltd, Kordia New Zealand Ltd, Compass Communications Ltd, Woosh Wireless (NZ) Ltd and Woosh Ltd, Trustpower (Kinect) Ltd, Woosh Wireless Ltd (now Railway St Industries), Transpower New Zealand Ltd, and Research & Education Advanced Network New Zealand Ltd.

ENDS

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