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Report to the Governor in CouncilStatus of telecommunications service complaints in CanadaApril 2008
The Honourable Jim Prentice, P.C., M.P. Dear Minister Prentice: I have the honour of presenting to you, in accordance with Order requiring the CRTC to report to the Governor in Council on consumer complaints, P.C. 2007-533, 4 April 2007, a report by the Canadian Radio-television and Telecommunications Commission outlining the status of telecommunications service complaints in Canada. This report covers the period of 31 January 2007 to 29 February 2008. Sincerely, Konrad von Finckenstein, Q.C. Executive SummaryPursuant to Order in Council P.C. 2007-533, this report to the Governor in Council outlines the status of telecommunications service complaints in Canada. In July 2007, ten telecommunications service providers (TSPs) formed a telecommunications consumer agency, the Commissioner for Complaints for Telecommunications Services Inc. (CCTS). Three additional TSPs enrolled in the CCTS after its inception. The thirteen TSP members of the CCTS account for almost 90% of the total telecommunications revenues in Canada. The CCTS is an independent consumer agency with a mandate to facilitate the resolution of telecommunications service complaints. Both the CRTC and the CCTS received telecommunications service complaints during the period covered in this report. From 31 January 2007 to 29 February 2008, the CRTC received 9,614 telecommunications service complaints from subscribers. The majority of these complaints concerned services provided by incumbent local exchange carriers (ILECs), and most related to billing and quality of service. Almost all of the complaints filed with the CRTC have been addressed. From 23 July 2007 to 29 February 2008, the CCTS received 1,351 telecommunications service complaints from subscribers that it considered were within its mandate. Most complaints related to billing, terms of service, and provision of service. The majority of these complaints were in the process of being resolved. This report identifies three issues affecting the telecommunications industry: changes to long distance service charges by TSPs, the implementation of diverse terms of service by ILECs, and the review by the CRTC of social regulatory measures. These issues will be addressed in upcoming CRTC proceedings and decisions. Following a public proceeding, the CRTC approved the structure and mandate of the CCTS subject to certain conditions being met, and required that all TSPs with annual Canadian telecommunications service revenues exceeding $10 million be members of the CCTS. Notwithstanding the work and the progress made by the industry to establish the CCTS, some TSPs have refused to join the CCTS and certain TSPs that did join are questioning the CRTC's authority to determine the CCTS's membership requirements. Consequently, the CRTC's conditions of approval have not yet been met. Introduction1.1 BackgroundThis report is made in response to the Governor in Council's direction (Order in Council P.C. 2007-533) to the Canadian Radio-television and Telecommunications Commission (CRTC) issued on 4 April 2007, pursuant to section 14 of the Telecommunications Act.1 This direction:
The telecommunications industry established the Commissioner for Complaints for Telecommunications Services Inc. (CCTS) on 23 July 2007. The CCTS is an independent consumer agency with a mandate to facilitate the resolution of telecommunications service complaints regarding the services provided by its telecommunications service provider (TSP) members. This report is thus based on complaints filed with both the CRTC and the CCTS. 1.2 TSP Complaint FilingComplaints may be filed with the CRTC by subscribers or potential subscribers of a regulated company pursuant to section 56 of the CRTC Telecommunications Rules of Procedure. These complaints may be in connection with:
Complaints may also be filed with the CCTS by subscribers or potential subscribers of TSPs that are members of the CCTS. These complaints may be in connection with forborne telecommunications services associated with:
1.3 Report Scope and OutlineThe information contained in this report is based on complaints filed with the CRTC between 31 January 2007 and 29 February 2008 and contacts and complaints filed with the CCTS between 23 July 2007 - when it was established - and 29 February 2008. Other information is based on developments up to 29 February 2008. Telecommunications services include local exchange, long distance, Internet, and wireless services. Section 2 of the report summarizes the nature and number of complaints received, by type of TSP and in total, and the status of these complaints. Section 3 identifies three issues that have warranted further attention by the CRTC. Section 4 provides a report on progress made toward the establishment of a consumer agency. A glossary of terms and acronyms used in this report is provided in Appendix 1. Detailed statistical information on the nature and number of complaints received by the CRTC per TSP is provided in Appendix 2. Due to certain limitations associated with both the CRTC's data collection (for example, the complaints database does not distinguish between business and residential customers) and the information provided by the CCTS, some information required by the Order in Council (OIC) could not be provided or has been provided in the only form available. Some information provided by the CCTS was also organized to conform to the report requirements. Notwithstanding these limitations, the information presented in this report provides a meaningful representation of the nature and number of complaints involving services provided by TSPs. 2.0 Summary of Telecommunications Service Complaints22.1 Total number of complaints to the CRTC and the CCTSThe CRTC received 9,614 complaints regarding the services provided by TSPs between 31 January 2007 and 29 February 2008. The CCTS received 3,731 contacts between 23 July 2007 and 29 February 2008, but only 1,351 (36.2%) were complaints about telecommunications services within the mandate of the CCTS ("in-scope" complaints). As Table 2.1 shows, the remaining 63.8% of contacts with the CCTS concerned out-of-scope complaints and other inquiries. Table 2.1 Total CCTS telecommunications service contacts
2.2 Complaints to the CRTC by type of TSPThere are two types of TSPs identified in this report: incumbent local exchange carriers (ILECs) and non-dominant carriers. In 2006, ILECs accounted for 72.6% of total telecommunications revenues, while non-dominant carriers represented 27.4%.3 As Table 2.2 shows, the majority (75.1%) of complaints to the CRTC concerned ILECs and the balance (24.9%) concerned non-dominant carriers. Table 2.2 Total CRTC telecommunications service complaints, by type of TSP
2.3 Nature of complaintsTable 2.3 lists the nature of telecommunications complaints filed with the CRTC. Most complaints related to billing (46.5%) and quality of service (20.4%). Other complaints concerned competition (5.3%), provision of service (12.5%), rates (9.2%), and terms of service (6.1%). Table 2.3 Total CRTC telecommunications service complaints by nature
Billing was also the primary complaint filed with the CCTS, representing 20.6% of the total, followed by complaints about terms of service (16.4%) and provision of service (16.3%). The remaining contacts related to competition (1.8%), credit management (3.4%), other - in-scope (9.7%), and other - out-of-scope (31.8%). (See Table 2.4) Table 2.4 Total CCTS telecommunications service contacts by nature
2.4 Status of complaintsAs shown in Table 2.5, nearly 99% of telecommunications service complaints received by the CRTC were closed (i.e. resolved) as of 29 February 2008. Table 2.5 Total CRTC telecommunications service complaints by standing
The majority (52.6%) of in-scope telecommunications service complaints received by the CCTS were pending as of 29 February 2008. Forty-one percent of complaints were closed, and 6.2% were open. Table 2.6 Total CCTS telecommunications service complaints by standing
3.0 Telecommunications Issues or Trends3.1 Changes to long distance service chargesA highly competitive market in long distance (toll) services since 1997 has resulted in declining long distance service revenues for TSPs. Recently, some TSPs made changes to their long distance service charges over the period covered by this report, introducing varying kinds of network access charges. In addition to basic toll rates, some TSPs introduced a fixed network charge for subscribers making basic toll calls in a given month or introduced a network charge on each basic toll call. In this regard, the CRTC and the CCTS received a large number of complaints from subscribers regarding a network access charge implemented by TELUS Communications Company (TELUS). TELUS introduced a monthly network access charge applicable to all subscribers who had not enrolled in one of its long distance plans and who had not transferred to an alternate primary long distance provider. This charge was applied regardless of whether the subscriber made long distance calls during the month. A public proceeding was initiated to consider the TELUS access charge. The CRTC expects to issue a determination on the issue soon. 3.2 Implementation of diverse terms of serviceWhile a growing number of telecommunications services are not regulated by the CRTC, all ILEC telecommunications services are subject to terms of service. Increasingly, subscribers are complaining about varying and inconsistent terms of service. Recently, ILECs have been offering different terms of service according to the kind of services provided and/or the region served. As evidenced by the number of complaints associated with terms of service, in particular for those directed to the CCTS relative to the CRTC, subscribers are finding it increasingly difficult to understand the terms of service applied to their telecommunication services. On 4 February 2008, several ILECs collectively filed an application with the CRTC in order to review the disclosure requirements associated with the terms of service. The CRTC expects to deal with issues pertaining to the mandatory disclosure of certain information, including the terms of service, in the next fiscal year. 3.3 Review of social regulatory measuresThe Governor in Council issued a Policy Direction4 to the CRTC that, among other things, directs it to rely on market forces to the maximum extent possible to achieve the telecommunications policy objectives, but also to implement non-economic regulatory measures (for example, social obligations) in a symmetrical and competitively neutral manner to the greatest extent possible. Given that ILECs are the dominant providers of most telecommunications services, the CRTC has generally imposed non-economic regulatory measures, in particular social obligations, on them alone. However, the telecommunications market share of non-dominant carriers has grown significantly in the past few years, and concerns are now being raised by both subscribers and ILECs about the fact that some social obligations for non-dominant carriers are voluntary. The CRTC has initiated a proceeding5 to develop an action plan to prioritize the review of various social and other non-economic regulatory measures. It expects to issue this action plan shortly. 4.0 Report on Progress on the Development of a Consumer Agency4.1 Establishment of the consumer agency by the industryIn May 2007, four TSPs, Bell Aliant Regional Communications, Limited Partnership (Bell Aliant), Bell Canada, TELUS, and Saskatchewan Telecommunications (SaskTel) began to develop a consumer agency to meet the requirements set out in the OIC. In June 2007, they held information sessions with other TSPs (including Cogeco Cable Canada Inc. (Cogeco), Bragg Communications Incorporated, carrying on business as Eastlink (EastLink), Rogers Communications Inc. (Rogers), Shaw Telecom Inc. (Shaw), Quebecor Media Inc., on behalf of Vidéotron Ltd. (Vidéotron), MTS Allstream Inc. (MTS Allstream), Primus Telecommunications Canada Inc. (Primus), and Vonage Canada Corp. (Vonage)), and consumer groups (including the Public Interest Advocacy Centre (PIAC), the Consumers' Association of Canada, the Consumers' Council of Canada, Option consommateurs, BC PIAC, and Union des consommateurs) to explain the structure and mandate of the proposed consumer agency and to receive any feedback on their proposal. The CCTS was established one month later, on 23 July 2007, by Bell Aliant, Bell Canada, Cogeco, MTS Allstream, Rogers, SaskTel, TELUS, Vidéotron, Virgin Mobile Canada, and Vonage (collectively, the founding members). On that same date, the founding members of the CCTS filed the organization's proposed mandate and structure with the CRTC for its approval. CCTS membership has expanded since its inception, and now also includes EastLink, Northwestel Inc., and Télébec, Limited Partnership (Télébec). Based on total Canadian telecommunications service revenues for 2006, current CCTS members represent almost 90% of the total telecommunications market. 4.2 Process for obtaining the CRTC's approval of the CCTSIn August 2007, the CRTC initiated a proceeding, including a public consultation, on matters such as the membership, governance, mandate, remedies, and operating procedures of the CCTS.6 It approved the structure and mandate of the CCTS on 20 December 2007, subject to certain conditions.7 The CRTC's determinations required that:
4.3 Implementation of the CRTC's conditions of approvalThe CRTC acknowledges the efforts made by TSPs to establish the CCTS in a timely fashion and is pleased to see the overall progress made to develop a consumer agency. Notwithstanding the progress made, efforts to implement the CRTC's conditions of approval have encountered some difficulties. Revised agency documents were filed with the Commission on 4 February 2008 as required by the CRTC. However, these documents had not been approved by the members of the CCTS or by its board of directors. Additionally, on 8 and 12 February 2008, various interested parties expressed concerns about the implementation of these revised agency documents. Also on 4 February 2008, the CRTC received two applications to review and vary the conditions of approval. The first application, which was filed by a few large cable companies (namely, Cogeco, EastLink, Rogers, Shaw, and Vidéotron), requested that the CRTC rescind its determinations regarding:
In the second application, Bell Canada et al. (Bell Aliant, Bell Canada, Northwestel Inc. and Télébec) requested that the CRTC rescind its determination on how the CCTS should apply contractual limitations of liability. As a result, some TSPs have refused to join the CCTS while other TSPs have indicated that they will delay enrolling with the CCTS until these applications have been dealt with by the CRTC. Consequently, the CRTC's conditions of approval have not yet been met. These issues will be addressed by the CRTC shortly. Appendix 1Glossary of terms and acronymsBasic toll call: Long distance call made by a consumer who has not subscribed to a long distance service plan offered by their primary long distance service provider. Billing (as the nature/subject of a complaint): Complaints related to billing disputes involving such matters as unjustified charges, billing errors, etc. Commissioner for Complaints for Telecommunications Services Inc. (CCTS): Consumer agency, established by members of the telecommunications industry, which receives, attempts to facilitate resolution of, and, if necessary, resolves eligible complaints in an accessible, impartial, timely, efficient, and informal manner after direct communication between a consumer or small business and a member TSP has proven ineffective. Competition (as the nature/subject of a complaint): Complaints related to issues such as slamming and end-user choice. Complaint: For the CRTC, refers to correspondence submitted to CRTC Client Services by a customer or potential customer on matters related to the provision of telecommunications services. For the CCTS, refers to correspondence submitted to the CCTS by a customer or potential customer of a TSP member on matters in scope of the agency's mandate. Contacts: In-scope complaints, out-of-scope complaints and other inquiries received by the CCTS. Forbearance: Deregulation by the CRTC under section 34 of the Telecommunications Act (the Act) in respect of specified telecommunications services (i.e. refraining from exercising some or all its powers under sections 24, 25, 27, 29, and 31 of the Act.) In-scope (complaint): A complaint within the mandate of the CCTS, including complaints related to issues such as billing, provision of service and terms of service for forborne services. Incumbent local exchange carrier (ILEC): A telecommunications service provider that provided monopoly local telephone service prior to the introduction of competition. Internet service: Retail Internet services, including dial-up and high-speed access. Local exchange service: Local telecommunications services provided to customers through access to the public switched telephone network. Long distance service: Telecommunications services using the toll network. Non-dominant carrier: A telecommunications service provider that is not an incumbent local exchange carrier anywhere in Canada, which may include competitive local exchange carriers, wireless carriers, resellers, and competitive pay telephone service providers. Out-of-scope (complaint): A complaint outside the mandate of the CCTS, including complaints associated with non-member TSPs, issues such as rates, misleading advertising and general operating practices, and issues with respect to regulated services. Provision of service (as the nature/subject of a complaint): Complaints related to issues such as the extension of the TSP's network to an unserved customer, the provision or lack of provision of a particular service (such as call management services) or other issues related to the obligation to serve. Quality of service (as the nature/subject of a complaint): Complaints related to issues such as TSP repair issues, missed appointments, TSP customer call centres, etc. Rates (as the nature/subject of a complaint): Complaints related to TSP rates for telecommunications services. Status - Closed (as the standing of a complaint): For the CRTC, refers to a complaint that has been resolved and no further regulatory action is required by the CRTC's Client Services. For the CCTS, refers to a complaint that has been resolved to the satisfaction of the TSP member and the complainant. Status - Open (as the standing of a complaint): For the CRTC, refers to a complaint that has been received at the CRTC but has not yet been reviewed by a CRTC Client Services officer. For the CCTS, refers to a complaint that is awaiting a referral to the TSP member. Status - Pending (as the standing of a complaint): For the CRTC, refers to a complaint that is currently being reviewed by a CRTC Client Services officer. The officer is either awaiting a response from the TSP, reviewing and analyzing the TSP response or seeking assistance from CRTC staff. For the CCTS, refers to a complaint that is either awaiting the TSP member response, awaiting confirmation of the complainant's satisfaction, or requiring action and potential recommendation by the Commissioner of the CCTS. Telecommunications service provider (TSP): A company that provides telecommunications services. Terms of Service: Terms that set out many of the basic rights and responsibilities of a TSP and of its customers regarding the provision of services and equipment. Terms of service (as the nature/subject of a complaint): Refers to complaints related to items found in the TSPs' Terms of Service, such as deposits and disconnections. Wireless service: A service provided via the airwaves - radio, cellular, satellite, microwave, etc. Appendix 2CRTC Telecommunications service complaints
Notes:1 Order requiring the CRTC to report to the Governor in Council on consumer complaints, P.C. 2007-533, 4 April 2007. 2 This section includes many terms and acronyms that are defined in the glossary provided in Appendix 1. 3 Based on information found in the CRTC Telecommunications Monitoring Report, Status of Competition in Canadian Telecommunications Markets - Deployment/Accessibility of Advanced Telecommunications Infrastructure and Services, July 2007, p. 15. 4 Order Issuing a Direction to the CRTC on Implementing the Canadian Telecommunications Policy Objectives, P.C. 2006-1534, 14 December 2006 (the Policy Direction). 5 Call for comments on priorities regarding the review of social and other non-economic regulatory measures, Telecom Public Notice CRTC 2008-1, 22 January 2008. 6 In Proceeding to consider the organization and mandate of the Commissioner for Complaints for Telecommunications Services, Telecom Public Notice CRTC 2007-16, 22 August 2007. 7 Establishment of an independent telecommunications consumer agency, Telecom Decision CRTC 2007‑130, 20 December 2007 (Decision 2007-130). Date Modified: 2008-04-07 |
