Sharechat Logo

Chorus cops 13 percent of $50 mln telecommunications levy

Thursday 27th June 2013

Text too small?

Chorus, the network operator spun out of Telecom, will have to stump up $6.4 million for its share of the annual levy to fund commercially non-viable telecommunications services after raising concerns about its ability to recoup the cost.

The Commerce Commission today set how much each of the 26 providers fingered will have to pay towards the Telecommunications Development Levy for 2011/12, which replaces the old Telecommunication Service Obligation that Telecom operated under.

The antitrust regulator considered Chorus' concerns about its ability to recover the costs of the levy "but noted the setting of wholesale prices was outside the TDL process," it said in a statement.

Telecom will pay almost 51 percent of the levy, amounting to $25.4 million, followed by Vodafone New Zealand with about $11 million. Vodafone Fixed, the entity which replaced TelstraClear, will pay $3.9 million and Two Degrees Mobile will stump up $1.2 million.

The major phone companies account for almost 96 percent of the total levy.

"The commission will follow a similar approach in setting future TDLs," Telecommunications Commissioner Stephen Gale said. "A consistent approach year on year will reduce future compliance costs for telecommunications providers."

The TSO, formerly known as the Kiwi Share, was used to pay for telecommunications infrastructure where it isn't immediately profitable to do so, such as in rural areas. Its replacement is a contestable fund that officially started last year, and will initially meet the government's $300 million rural broadband initiative.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Contact plans to buy back some retail bonds paying 8 percent
Chorus rolls out ex-Telco Commissioner Patterson to press for regulatory overhaul
Chorus lifts capital spending, projects flat-to-lower 2014 earnings; shares slip
Chorus flags flat-to-weaker underlying earnings in 2014
Upbeat signs in telco law review not enough to save Chorus dividend, broker says
Chorus shares jump, but still wary on copper pricing split
Sell Chorus, says Deutsche Bank, as regulatory risk multiplies
Chorus lifts broadband connections in March quarter, fixed line connections edge down
Chorus signs UFB build contracts; Govt to change security laws
Chorus 1H earnings meet expectations, lifts forecast UFB cost by $300M

IRG See IRG research reports