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Commerce Commission outlines approach to telco levy

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New Zealand's Commerce Commission today released a further paper on how it plans to set the Telecommunications Development Levy that will be paid by telecommunications companies to the government.

The government will use the NZ$50 million a year levy to fund things like the relay service for the hearing impaired, the Rural Broadband Initiative and upgrades to the 111 emergency calling system.

The discussion paper outlines what telecommunications company revenues are likely to attract the levy. Revenue earned from services such as voice and content delivery will be captured but not revenue from the content itself. The aim is for a wide group of public telecommunications network operators to contribute to the levy, while avoiding levying the same services at both the wholesale and retail level.

"Levying just the public telecommunications network operators' delivery revenues is complex because delivery is increasingly bundled with hardware, like handsets, and content. So we are keen to hear the views of interested parties before we finalise the levy mechanism," said Dr Stephen Gale, Telecommunications Commissioner.

Interested parties are invited to make submissions on the discussion paper by Friday 2 November 2012.

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Tags: commerce commission  New Zealand