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The government wants to progress rural households' access to broadband and proposes reforming the Telecommunications Service Obligations (TSO) to achieve it, a discussion document shows.
Communications and Information Technology Minister Steven Joyce has announced the release of two discussion documents on the government's rural broadband and the TSO.
Joyce previously announced the government would fund a $300 million rural broadband initiative.
On Tuesday, he said it would be funded through a $48m direct contribution, interim funding of $52m, and the rest through a new TSO.
The new TSO will be "a more transparent contestable industry-wide mechanism that focuses on developing rural telecommunications", Joyce said.
The TSO levy has been in place since 2001 and involves the industry paying the levy which is paid back to compensate companies supplying service to rural customers.
There had been "considerable controversy" within the industry about the TSO and it needed to be more transparent, Joyce said.
Changes to the TSO would not affect the obligation for companies to provide free local calls, he said.
"Likewise, there are no plans to further loosen rules around foreign ownership of Telecom."
The changes would see the amount gathered rise by $20m to $50m a year for six years.
"When the government tenders for the provision of rural broadband it will be an open and competitive process, with full transparency on where the money is spent."
The two discussion papers are open for submission until October 30.
