Final Decision On Allocation Of Telecommunications Development Levy

The Commerce Commission has today released its final decision on the allocation of payments for the Government’s $10.484 million Telecommunications Development Levy (TDL) for 2021/22.

Under the Telecommunications Act, the Commerce Commission has responsibility for determining each liable provider’s share of the TDL. Providers are liable when their gross revenues from telecommunications services are more than $10 million per year, and the amount each liable provider pays is proportionate to their revenue from these services in the relevant TDL year.

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.

Spark NZ, Vodafone NZ, Chorus, and 2degrees will collectively pay approximately 87% of the $10.484 million levy for the year from 1 July 2021 to 30 June 2022. The remainder of the levy is divided among other liable providers.

The levy allocations remain unchanged from the amounts proposed in the draft determination.

A copy of the final determination is available on our website.

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