Why Sky TV is suddenly New Zealand’s eighth largest telephone company
The pay-TV platform Sky TV has just become New Zealand’s eighth-largest telecommunications service provider, at least according to the Trade Commission.
The commission today released its latest Telecommunications Development Tax (TDL) determination project, which can also act as a proxy for market share in the provision of basic telecommunications services. As you might expect, the list is dominated by the big four: Spark, Vodafone, Chorus and 2degrees.
But Sky TV has now joined the telecommunications team due to a change in the law and an unfavorable High Court ruling last month which ruled that the company does provide telecommunications services. According to the draft determination, he is expected to pay $ 83,257 of the total $ 10.1 million levy.
TDL is an annual levy that the government uses to pay for improvements to New Zealand’s telecommunications infrastructure, including relay service for the deaf and hard of hearing, broadband for rural areas, and improved emergency service 111.
The court case hung on whether, after legislative changes in 2018, communications over a telecommunications network should be two-way. The judgment confirmed that with the exception of free-to-air broadcasters and satellite providers operating outside New Zealand, local companies involved in the transmission of broadcasting, such as Sky TV on its satellite services, could be required to pay the royalty.
Kordia’s share of the levy, a provisional amount of $ 77,136, also increased as a result of the judgment.
New Zealand’s largest telecommunications companies are conglomerates, which sometimes operate businesses and generate revenue far beyond the provision of basic network services. TDL can overcome some of these problems and provide insight into where everyone stands in the provision of basic telecommunications.
Spark leads the pack with nearly a third of the levy payable, $ 3.3 million. Vodafone followed with a drawdown of $ 2.6 million, followed by Chorus with $ 2 million and 2degrees with $ 961,601. Collectively, these four pay 88 percent of the tax. Vocus rounded out the top five with a drawdown of $ 301,543.
Sky TV also launched fiber broadband services in March.
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Tags VodafoneTelecommunicationsVocus2degreesChorusSky TVspark