Starlink To Contribute To Telecommunications Development Levy For The First Time

The Commerce Commission has today released its draft decision on the allocation of payments for the Government’s $12 million Telecommunications Development Levy (TDL) – with satellite provider, Starlink, set to contribute for the first time.

The Levy is used to pay for telecommunications infrastructure and services that are not commercially viable, including broadband for rural areas and improvements to the 111-emergency service.

Starlink now meets the threshold for providers who must contribute to the Levy which includes all providers with gross revenues in excess of $10 million in the preceding year from telecommunications services including internet, mobile, and data.

“For the first time, Starlink’s revenue has reached the threshold where it needs to join other telcos in contributing to the TDL and subsiding services in the public interest. Starlink’s levy share will be proportionate to its qualified revenue of $74 million for this year,” says Tristan Gilbertson, Telecommunications Commissioner.

Under the Telecommunications Act, the 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 draft determination proposes that Spark NZ, One NZ, Chorus, and 2degrees collectively pay approximately 84% of the $12 million Levy for the year from 1 July 2023 to 30 June 2024. 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, 8 November 2024. The Commission expects to release its final determination in early December.

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