Costs of Government’s Telecommunications Levy to be passed on to consumers

Forums › New Zealand Broadband › Costs of Government’s Telecommunications Levy to be passed on to consumers

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JWR

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#1311531 25-May-2015 19:36

I don't mind paying an extra $1.00 a month so they can roll out broadband to more country areas.

Small town New Zealand is declining and perhaps decent Internet may help them a little.

I would have to say BS to Spark though.

It is like a company claiming to have been absorbing GST. But, now they are forced to pass on the costs. I wouldn't believe that one either.

At least, the retail side of ISP is competitive these days.

Let Spark increase their prices. I bet it will be by more than $1..0 a month.

Stu

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#1379345 3-Sep-2015 18:49

Spark have started charging 99c per Broadband and Pay Monthly mobile line, and this includes the $3 a month OneBill mobile plans. So OneBill is now $3.99, and the cost of the plan doesn't include any mobile broadband allowance anyway so can't see why they're charging the levy on this plan?

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Rikkitic

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#1379356 3-Sep-2015 19:10

We are rural and we are already paying substantially more. So what is the problem?

Plesse igmore amd axxept applogies in adbance fir anu typos

Stu

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#1379358 3-Sep-2015 19:17

I have zero problem paying the 99c on the landline and maybe even on mobiles with data packages included. I do have a problem paying it on a $3 a month mobile number that has no mobile broadband allowance, and at pay as you go rates never will be used for mobile data.

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quickymart

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#1379360 3-Sep-2015 19:19

You do get 15 free minutes with that plan, I believe.

Stu

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#1379361 3-Sep-2015 19:20

Minutes, not megabytes.

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nigelj

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#1379776 4-Sep-2015 14:14

Stu: Minutes, not megabytes.

Doesn't matter, it's still a mobile connection, the TDL funds are going towards rural broadband (both fixed (iirc) and wireless) and mobile projects (voice). Additionally the TCF is levied based on revenue, so from an accounting perspective it's to spread that out.

See http://www.comcom.govt.nz/dmsdocument/12820 for an example - poor ol' Spark got 'shaken down' for $19m out of the $50m for '13-'14 - recuperating that fairly is what they are trying to do. For the $3/mo OneBill option, it does seem unfair in proportion, but it serves Spark's purpose perfectly. Which is... "This is a government levy that we've hidden from you and absorbed, we've got to pass it on now on, if you aren't happy, don't run to us, go running to your local MP"

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Stu

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#1379851 4-Sep-2015 15:47

So why no levy on landline phone only connections, only broadband? That's what Spark are suggesting by the comment on our latest bill.

I'm sure other providers will follow suit, if they're not already?

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browned

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#1379885 4-Sep-2015 16:41

lxsw20:
raytaylor: a) These people are the backbone of our economy

It's amazing how quickly people forget what our primary export market is.

Who could forget that, nice reminder everytime you buy milk!

nigelj

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#1379892 4-Sep-2015 16:42

Stu: So why no levy on landline phone only connections, only broadband? That's what Spark are suggesting by the comment on our latest bill.

I'm sure other providers will follow suit, if they're not already?

Because if I'm not mistaken, Spark already put up Landline prices recently (*at least once in the last few years), perhaps when they released the Fibre landline. https://www.spark.co.nz/shop/landline/pricing/ ($50/mo for Fibre Landline or Auckland/Wellington/Christchurch Copper, +$3.50 other copper), was hovering around $44-ish from memory for a long time. Otherwise they are likely notifying those people via their bills too/other means.

I imagine you have a Landline + Broadband package, hence one 'connection' as it's a pack.

(Edit: If you really want to argue 'fairness', point to the many plan-less prepaid connections that spend $1-2/yr and aren't getting pinged for a TDL contribution when they topup to keep the SIM active ;))

raytaylor

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#1379921 4-Sep-2015 17:56

Stu: Spark have started charging 99c per Broadband and Pay Monthly mobile line, and this includes the $3 a month OneBill mobile plans. So OneBill is now $3.99, and the cost of the plan doesn't include any mobile broadband allowance anyway so can't see why they're charging the levy on this plan?

All telecommunications operators that turn over $1 million per year or more get their total turnover added up, then divided by the amount required for the TDL.

I think its $50 million per year, divided up by all telco's that turn over more than $1 mill

And that includes turnover from all activity - doesnt matter if its broadband, landlines, selling consulting services or non direct telco income. All income that the limited liability company creates through any activity - if they perform any activity as a "telco" then they are liable.

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quickymart

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#1379936 4-Sep-2015 18:36

Stu: Minutes, not megabytes.

Yes, I know that.

Dynamic

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#1454122 21-Dec-2015 08:07

Our Accounts lady just highlighted to me that we are paying this 95x levy on 10 connections per month (across various mobiles and broadband connections).

What brassses me off a bit is that the loyal contract mobile customers are getting rogered from Day 1 where Prepay Mobile users are not being hit at all that I can see. If someone argues that it will be 'baked in' somewhere else in the Prepay charges, I would simply ask why the same is not done for contract customers.

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Geektastic

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#1454860 21-Dec-2015 23:03

I wonder when they will start dividing up their corporation tax bill and adding a portion of it to each user....

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