Musk’s Starlink to Be Called Upon to Pay Telco Levy in New Zealand: Commerce Commission

Published on October 25, 2024

Elon Musk’s Starlink now has over 37,000 customers in New Zealand for its satellite broadband service, which delivers internet to remote locations, including homes, bachs (small holiday homes), boats and even Air New Zealand planes. That’s brought its local revenue to over $10 million (US$6.01 million)—which triggers an obligation for it to contribute toward the annual $12 million Telecommunications Development Levy. The money, which is collected from all large telcos in New Zealand, contributes to the cost of services such as emergency calls, as well as rural broadband initiatives—which are direct competition to Starlink in a way they are not to other telcos, who derive most of their revenues from areas of higher population density....