By Ahmad Hathout
The CRTC on Friday launched a consultation to review whether the fee structure of the Commissioner for Complaints for Telecom-television Services (CCTS) burdens smaller telecoms.
Specifically, the regulator holds the preliminary views that the watchdog’s fee structure may “disproportionately” harm smaller telecoms, new market entrants and regional players compared to larger ones; and that there may not be an effective mechanism for these telecoms to have the fees related to complaints reviewed before being forced to pay or lose membership, which is a requirement of the CRTC.
“If these two views are accurate, they limit the efficient resolution of some customer complaints and lead to an increased number of small TSPs having their participation in the CCTS terminated, which affects TSP customer protection and reduces competition in the telecommunications market,” the CRTC said in the consultation document Friday.
Comments are due on March 31.
“The CCTS is currently reviewing the notice of consultation and will participate in the process as it unfolds,” a spokesperson told Cartt.
The consultation comes in response to a December complaint filed by small provider InnSys, which alleged, in part, that the watchdog did not provide it with due process to challenge complaint-related fees. InnSys was expelled from CCTS membership in November 2023 for failure to comply with the watchdog’s public awareness plan requirements, failure to provide required financial information, and failure to pay CCTS invoices.
The CCTS said in response to the December complaint that the organization has made strides to alleviate the strain on smaller telecoms by eliminating the initial sign-up fee and, after 2023, not charging for complaints that were outside the scope of its mandate.
It also said that telecoms making $10 million or more – which pay annual participation fees that scale with their size – fund the vast majority of its revenue and make up the bulk of the complaints it reviews. On the other hand, it charges a flat $100 fee for any telecom below that threshold.
The watchdog also has a complaints-based fee system — making up 30 per cent of its revenue — in which fees increase with the escalation of complaints. InnSys said these complaint-based fees are high and have impacted its ability to compete and offer services.
The CRTC found that complaints against smaller telecoms are not addressed in the earlier stages of the complaint-resolution process, “which results in small TSPs having a higher average charge per complaint than large TSPs. The Commission is of the view that this may be due to small TSPs’ limited resources and staff.”
As a result, the regulator pointed to the existing complaint-based fee structure as a “barrier for some small TSPs, which may prevent customer complaints from being resolved efficiently.”
The CRTC will also examine whether there is a need to implement a fee dispute mechanism within the organization. Currently, the CCTS’s dispute mechanism captures just two scenarios: if it accepted a complaint that was later determined to be outside of its mandate, and if the telecom is charged or invoiced incorrectly. The telecoms must dispute the complaint-based fee amounts applied at each level of escalation to the board and must get at least six of seven votes in favour.
“The Commission recognizes that small TSPs may be frustrated with the CCTS’s dispute mechanism, which does not have sufficient recourse for TSPs to dispute complaint-based fees,” the CRTC said.
“Given the historical record of TSP referrals for non-compliance to the Commission by the CCTS, the Commission’s view is that participation from some TSPs would likely not have to be terminated from the CCTS and subsequently referred to the Commission if the CCTS had an adequate dispute mechanism.”
Among other questions, the consultation asks: If the complaint-based fee structure should be changed, what would an appropriate one look like for smaller telecoms? Should a fee threshold, fee cap or flat fee be implemented? And would this new structure incentivize early complaint resolution?
Image via CCTS
