The CRTC via an Aug. 12 letter is asking telecommunication service providers (TSPs), as well as intervenors, for their input on a potential increase to the $10-million revenue threshold for participation in the commission’s National Contribution Fund (NCF) and payment of annual telecom fees.
An April 2024 application by the Independent Telecommunications Providers Association (ITPA) had requested the revenue threshold be increased from $10 million to $25 million. Large telecoms, including Bell, Quebecor, Telus and Rogers, have argued against the increase, while the Canadian Communication Systems Alliance (CCSA) and the Competitive Network Operators of Canada (CNOC) have supported the ITPA’s application.
The CRTC is now considering the impacts of increasing the revenue threshold to either $25 million, $50 million or $100 million.
Under the current $10-million revenue threshold, 129 TSPs or 80 groups of related TSPs contribute to the NCF and annual telecom fees, according to the CRTC’s letter. In 2025, TSPs will contribute $184.7 million to the NCF, which is equal to 0.46 per cent of contribution-eligible revenues of all TSPs that are required to contribute. For the 2025-2025 fiscal year, TSPs paid $61.1 million in annual telecom fees.
Looking at the impact of a $25-million threshold, based on 2024 revenue figures, 42 of the 129 TSPs (or 32 of the 80 groups) generate between $10 million and $25 million in revenues. These companies or groups make up 0.73 per cent of the NCF contributions and annual telecom fees paid, which represents approximately $1.35 million in NCF and $445,000 in annual telecom fees ($1.79 million total). These contributions would need to be recovered by the remaining 87 TSPs (or 48 groups), the CRTC says. Making up 0.73 per cent of the $184.7 million collected for the NCF, the revenue per cent charge would have increased to 0.47 per cent in 2024.
Looking at a $50-million threshold, 75 of the 129 TSPs (or 54 of the 80 groups) generate between $10 million and $50 million in revenues, based on 2024 figures. These companies/groups make up 1.9 per cent of the NCF contributions and annual telecom fees paid, representing approximately $3.5 million in NCF and $1.16 million in annual telecom fees ($4.7 million total), which would need to be recovered by the remaining 54 TSPs (or 26 groups). Making up 1.9 per cent of the $184.7 million collected for the NCF, the revenue per cent charge would have increased to 0.47 per cent in 2024 in this scenario.
With a $100-million threshold, based on 2024 figures, 89 of the 129 TSPs (or 61 of the 80 groups) generate between $10 million and $100 million in revenues. These TSPs and groups make up 2.54 per cent of NCF contributions and annual telecom fees paid, representing approximately $4.68 million in NCF and $1.55 million in annual telecom fees ($6.23 million total), which would need to be recovered by the remaining 40 TSPs (or 19 groups). Making up 2.54 per cent of the $184.7 million collected for the NCF, the revenue per cent charge would have increased to 0.48 per cent in 2024.
The CRTC is asking for comments on each of the proposed scenarios, with a focus on the impact each may have on a TSP’s business or on the businesses of industry associations’ members. The CRTC also wants comments on the potential implications related to each scenario were these thresholds to be implemented for the upcoming fiscal year.
Answers to the commission’s request for information (RFI) are due by Sept. 12. Interventions or responses to those RFI responses are due by Sept. 26. The ITPA has until Oct. 3 to file its reply to new information on record. The CRTC will also consider Oct. 3 to be the close of record for issues considered in ITPA’s Part 1 application.
