Even as Ms Curran was predicting an immediate price hike for internet and telephone connections across New Zealand, Spark managing director Simon Moutter was announcing the telecommunications company would pass the levy cost on to its broadband and on-account mobile customers.
Communications Minister Amy Adams confirmed the levy after the Telecommunications (Development Levy) Amendment Levy Bill was passed, with support from all parties other than Labour, on Saturday.
Ms Adams said the extension of the development levy would fund the $100 million expansion of fast, reliable broadband to the regions.
It would also establish a $50 million fund to extend mobile coverage in black-spot areas such as along main highways and in popular tourist destinations.
''While the Government has made excellent strides with the first phase of the Rural Broadband Initiative [RBI], we want to do even more to extend better broadband to rural New Zealanders,'' she said.
Ms Curran said not only was the levy a new broadband tax, it was wasteful and negligent spending on a rural broadband scheme which was not working.
There had been no consultation with the industry and no chance to scrutinise the outcomes of the existing rural broadband scheme.
Consumers would be taxed more to pay for a policy failure, she said.
Telecommunications Forum chief executive Geoff Thorn was concerned about the process the Government followed to extend a tax on the telecommunications industry to pay for the extension to rural broadband.
The forum supported expanding broadband to New Zealanders wherever they were, and the industry was investing billions to support that goal.
The Government's plan to partly subsidise the build of the fibre networks to urban New Zealand was a positive investment for all.
However, extending the RBI, and taxing the industry to fund it was not only inconsistent with the funding approach for ultra-fast broadband, but it was a financial burden the industry could not afford as it dealt with falling revenue and profits, he said.
Mr Moutter said the $50 million annual liability was allocated across 20 telecommunications providers by the New Zealand Commerce Commission, based on a proportion of their qualifying revenue.
The bill for that from the Government to Spark averaged out at nearly $1 per month for each of its consumer and business broadband and mobile customers.
Now the Government had confirmed the levy would continue, rather than reduce as originally legislated for, it meant Spark would pass the cost through to customers.
''We are exploring options for adding this cost in a transparent way to our customers' monthly statements so they understand the contribution they are making to the Governments Telecommunications Development Levy fund.''
