Telecommunications service obligations
The telecommunications service obligations (TSO) regulatory framework established under the Telecommunications Act 2001 enables specific telecommunications services to be available and affordable.
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TSO providers
A telecommunications service obligation (TSO) is established through an agreement under the Telecommunications Act between the Crown and a TSO provider.
Currently there are 2 TSO providers:
- Chorus is the TSO provider of Network Service supporting delivery of Local Residential Telephone Service
- Spark is the TSO provider of Local Residential Telephone Service to end users.
Charges paid to TSO providers
Costs for subsiding telecommunications services supplied under TSOs are funded through the Telecommunications Development Levy. This levy is collected from the telecommunications industry.
The Commerce Commission works out the TSO charge paid to a TSO provider and the proportion of the Telecommunications Development Levy each provider is liable for.
TSOs that cease to apply under the Telecommunications (New Regulatory Framework) Amendment Act 2018
Under the Telecommunications (New Regulatory Framework) Amendment Act 2018, the TSOs which apply to Chorus and Spark will cease to apply in areas which have fibre. Consumers in these areas will have access to affordable fibre-based landline and broadband services.
Chorus TSO Deed variation
On 18 December 2024 the Minister for Media and Communications agreed to amend the Chorus TSO Deed to enable Chorus to retire Customer Multi Access Radio (CMAR) and Country Set (CS) legacy technology used to provide TSO telephone service.
The Chorus TSO Deed variation requires Chorus to transition TSO service users to another technology solution if they want to continue to receive TSO telephone service.
Read the Chorus TSO Deed variation:
Deed of variation: Chorus Limited and Chorus New Zealand [PDF 874KB]