Check liability for Telecommunications Development Levy

Suppliers providing telecommunications services must check liability for Telecommunications Development Levy

The Commerce Commission reminds those who deliver telecommunications services to check whether they are liable to contribute to the 2012/13 Telecommunications Development Levy.

The annual levy pays for telecommunications infrastructure including the Deaf Relay Service, broadband for rural areas, and improvements to the 111 emergency service.

“The Telecommunications Act 2011 requires that companies meeting certain criteria provide the Commerce Commission with revenue and shareholding information by 4 April 2013,” said Telecommunications Commissioner, Dr Stephen Gale.

“Last year, we provided an indicative list of liable parties, but it is now up to individuals or companies who supply telecommunications services to assess whether they are liable and, if so, provide the required information,” said Dr Gale.

“Suppliers should be aware that the Act provides specific penalties of up to $300,000 for failure to provide the information,” he said.

Parties meeting both the following criteria will need to supply revenue and shareholding information to the Commission.

• A person, or company, who provides telecommunications services in New Zealand via some component of a public telecommunications network. This may include the transmission of voice, data, SMS or any other content – but does not include broadcasting.

• A person or company who has earned $10 million or more from providing these telecommunications services in the 2011/12 financial year. The $10 million threshold can be met through revenue from a combination of liable persons where there is significant shareholding between two or more parties.

The Commission will use this information to identify the parties that will be required to pay a portion of the 2012/13 levy.

Further detail and information is available on the Commission’s website:
http://www.comcom.govt.nz/tdl-2012-13

Background

What is the Telecommunications Development Levy?
In June 2011, the Telecommunications Development Levy replaced the Telecommunications Service Obligations (TSO). The levy pays for government-led improvements to New Zealand’s telecommunications infrastructure. This includes the Deaf Relay Service, broadband for rural areas, and improvements to the 111 emergency service.

The TDL liability allocation process is established in the Telecommunications Act 2001 and is administered by the Commerce Commission. The Commission is responsible for establishing which telecommunication companies are liable to pay the yearly levy under subpart 2 of Part 3 of the Telecommunications Act 2001.

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