Commission Seeks Feedback On Draft Telecommunications Development Levy Allocation

The Commerce Commission has today released its draft decision on the allocation of payments for the Government’s $11.25 million Telecommunications Development Levy (TDL) for 2022/2023.

The TDL is paid by providers with gross revenues in excess of $10 million in the preceding year from telecommunications services, including internet, mobile, and data services.

Under the Telecommunications Act, the Commerce Commission has responsibility for determining each liable provider’s share of the TDL. The amount each liable provider pays is proportionate to their qualified revenue from telecommunications services in the relevant 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.

The draft determination proposes that Spark NZ, One NZ, Chorus, and 2degrees collectively pay approximately 87% of the $11.25 million levy for the year from 1 July 2022 to 30 June 2023. The remainder of the levy is divided among other liable providers.

A copy of the draft determination and information about how to make a submission is available on the Commerce Commission’s website.

Submissions are due by 5pm, 9 November 2023.

The Commission expects to release its final determination in early December.

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