Sky TV escapes govt levy
Pay TV broadcaster's golden run continues as it escapes a telco industry levy being used to part-fund the government's broadband plans. UPDATED: Tuanz boss says content providers like Sky should pay.
Sky TV's golden run continues.
After being named in a draft plan as one of the parties potentially liable for the new Telecommunications Development Levy - which will tap industry for around $60 million a year - the pay TV provider has been dropped from an "indicative list of liable persons" released today.
Parties on the list, which include the big phone companies and the new local fibre companies and Chorus, will have to pay a share of the new annual Levy (which replaces the old Kiwi Share Levy).
The industry levy will initially go toward funding six-year, $300m Rural Broadband Initiative (the $300m budget includes a $48m direct government grant).
Sky TV was named as one of the potentially liable parties in a discussion paper on potentially liable parties issued by the Commission in February.
The watchdog is seeking to access which companies, with turnover above $10m, have liable telecommunications revenue.
As the worlds of broadcasting and broadband converge, Sky TV has begun to use telecommunications services - for example, for its internet-based iSky service - and has struck a series of restrictive content, marketing and data partnerships with a series of ISPs.
Today, the Commission said in a statement:
"The indicative list of liable persons now excludes Sky on the basis that it does not operate a component of a telecommunications network."
Content providers should pay - Tuanz boss
"I think the commission will need to revisit the thorny issue of 'over the top' providers in the years ahead," Telecommunications Users Association Paul Brislen said.
"Companies that make money via the network should be helping to fund the network," Mr Brislen said.
"My concern is that the telcos are seeing a huge shift away from full integration yet are expected to fund the entire network build themselves.
"It's not just Sky, but all providers of content that rely on the network being robust and wide-reaching. Leaving them out of the cost equation could badly skew the results."
Submissions commenting on the document are due by May 9, and cross-submissions by May 23, as the levy process grinds on.
Those with opinions about who should pay, or not, should pack a lunch.
Until they settled out of court to clear the way for their joint Rural Broadband Bid last year, Telecom and Vodafone were embroiled in three Supreme Court and two High Court cases over amounts paid under the old Kiwishare Levy.
Until their August 2011 settlement, Telecom and Vodafone were disputing the levy all the way back to 2002. TelstraClear is still seeking $4m compensation for alleged overpayments.
Sky TV shares [NZX:SKT] were up 0.56% to $3.56 in late trading. The broader market was down 0.11%.
RAW DATA: Draft Notification of Potential Liability for the Telecommunications Development Levy 2012 (PDF)
Chris Keall
Thu, 19 Apr 2012
Thu, 19 Apr 2012
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Sky TV escapes govt levy
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