9 Apr 2010

TSO fees may need to be recalculated

2:57 pm on 9 April 2010

The Commerce Commission may be forced to recalculate two years of fees, worth more than $40 million, which Telecom was paid by rival companies.

The High Court has upheld a claim by Vodafone that the commission made a mistake when it calculated the Telecommunications Service Obligations levy - which is the levy Telecom gets for supplying phone lines to commercially unviable rural customers.

Vodafone has argued the levy should be based on the most efficient technology available and the commission should consider wireless and mobile technologies when assessing Telecom's costs in providing the service.

It says it's pleased with the court's decision and is receptive to working with the commission and Telecom to agree on a commercial solution.

But Telecom says it's surprised by the judgement, and while it is an historic case relating to fees paid between 2004 and 2006, the issues raised still require resolution.

The commission says it is reviewing the judgement and has not made a decision about whether to appeal.

This is the last year the levy will be paid by industry. It is to be replaced by a new one that will help pay for the Government's roll-out of ultra-fast broadband to rural areas.