“TSO – a tax on competition” – Vodafone

Friday, 27 June 2003, 5:07 pm
Press Release: Vodafone

“TSO – a tax on competition” – Vodafone

A tax on competition is how Vodafone New Zealand Ltd views the estimated cost of the Kiwi Share Telecommunications Service Obligation, which was released today.

Vodafone’s Managing Director Tim Miles said that the estimated cost of the Kiwi Share Telecommunications Service Obligation (TSO) was a very real disincentive to promoting competition in New Zealand.

“Today’s estimate of $38.84m (for the first six months) from the Telecommunications Commissioner, Douglas Webb, demonstrates that the interests of Telecom have been placed ahead of New Zealand consumers” said Mr Miles.

“For Vodafone this tax means that the more successful we are, and the more revenue and customers we take from Telecom then the more we have to pay them.

“The TSO levy is a tax against the entire telecommunications industry which will eventually be passed onto consumers because it penalises us for promoting consumer choice and making further investment in regional New Zealand.

“Ultimately the losers under this draft decision – if it remains at this high level – will be phone users outside of the main centres.”

Mr Miles said it is particularly disappointing to see this new tax being levied right at the time regional users were about to be offered the choice to move away from Telecom.

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