The liability threshold is on the gross telco revenue for the relevant period, with the levy calculated on qualified revenue after allowed deductions. The listed telcos will have gross revenues above the threshold ($10m), including those related to other entities that, when combined, exceed the threshold.
Popular Low Earth Orbit (LEO) satellite broadband provider Starlink, operated by Elon Musk's SpaceX, needs to pay its share of the annual Telecommunications Development Levy (TDL), the Commerce Commission says.
For the first time, Starlink NZ Unlimited Liability Company, Starlink Internet Services Pte Ltd, Swarm NZ Ltd, and Swarm Technologies Inc, are deemed as local SpaceX qualifying liable persons or QLP, under the TDL legislation the Commission administers.
Established under the Fifth National Government in 2011, the TDL pays for commercially non-viable telecommunications infrastructure and services. This includes broadband for rural areas and improvements to the 111-emergency service.
The TDL is not popular with telcos, with Spark, for example, saying it would pass on the cost to consumers. That was in 2015 when the TDL was at its original $50 million level. It has since been reduced to $10 million in 2020, and stands at $12 million this year.
Now it's SpaceX Starlink's turn to come to the TDL party.
“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,” Tristan Gilbertson, Telecommunications Commissioner, said.
The TDL is levied on providers that have revenue over a minimum $10 million threshold. SpaceX soaring revenue in New Zealand on the back of over 37,000 customers has placed it in the number eight spot among New Zealand telcos this year.
Of the total nearly $12 million a year, the SpaceX NZ Group of QLPs will be up for 1.52 per cent of the total, or $181,786.64.
The top TDL payers in New Zealand are Spark, One NZ, Chorus and 2degrees, which the Commission is asking to stump up 84 per cent of the $12 million total for the current round.
The Commission's allocation table below indicates a range of providers with less than the $10 million qualifying minimum revenue pay a proportion of the TDL. We have asked the Commission for an explanation and will update the story when one arrives.
Update A Commission spokesperson explained like so:
"The liability threshold is on the gross telco revenue for the relevant period, with the levy calculated on qualified revenue after allowed deductions. The listed telcos will have gross revenues above the threshold ($10m), including those related to other entities that, when combined, exceed the threshold."
ComCom's TDL allocation for providers operating in New Zealand
| Provider | Revenue | Share of Revenue | Levy Payment |
|---|---|---|---|
| Spark group | $1,397,790,784 | 28.87% | $3,443,551.78 |
| One New Zealand Group Ltd | $1,096,706,000 | 22.65% | $2,701,809.13 |
| Chorus group | $928,332,000 | 19.17% | $2,287,008.43 |
| 2Degrees group | $636,729,000 | 13.15% | $1,568,624.79 |
| Tuatahi First Fibre Ltd | $136,507,000 | 2.82% | $336,294.19 |
| Enable Service Ltd | $112,739,000 | 2.33% | $277,740.12 |
| Connexa Ltd | $108,416,000 | 2.24% | $267,090.12 |
| Fortysouth Group LP | $84,999,670 | 1.76% | $209,402.41 |
| SpaceX NZ group | $73,790,000 | 1.52% | $181,786.64 |
| Sky Network Television Ltd | $52,376,000 | 1.08% | $129,031.81 |
| Mercury NZ group | $51,138,000 | 1.06% | $125,981.91 |
| Kordia Ltd | $26,852,669 | 0.55% | $66,153.36 |
| Northpower Fibre Ltd | $17,808,000 | 0.37% | $43,871.21 |
| Vector Communications Ltd | $17,525,000 | 0.36% | $43,174.02 |
| Lightwire Ltd | $16,986,000 | 0.35% | $41,846.16 |
| Cello Group Ltd | $12,975,000 | 0.27% | $31,964.79 |
| Devoli group | $12,248,803 | 0.25% | $30,175.75 |
| Vital group | $11,003,037 | 0.23% | $27,106.72 |
| Voyager Internet Ltd | $10,341,000 | 0.21% | $25,475.75 |
| Inspire Net group | $9,158,000 | 0.19% | $22,561.35 |
| Feenix Communications Ltd | $6,930,000 | 0.14% | $17,072.52 |
| Plan B group | $5,810,638 | 0.12% | $14,314.90 |
| Wireless Nation Ltd | $4,351,000 | 0.09% | $10,718.98 |
| MyRepublic Ltd | $4,027,000 | 0.08% | $9,920.79 |
| Todd Corporation group | $3,339,161 | 0.07% | $8,226.25 |
| Transpower New Zealand Ltd | $3,000,000 | 0.06% | $7,390.70 |
| Total Industry | $4,841,878,762 | 100% | $11,928,294.57 |
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