January 15, 2025
This week, the Commission for Complaints for Telecom-television Services (CCTS) released its 2023-2024 annual report, highlighting customer complaint data and trends in the Canadian telecom and TV sectors. The press release titled “Billing issues top surging telecom and TV complaints as Canadian consumers face rising cost of living” might lead you to believe that the telecom sector is plagued by high levels of customer complaints and that telecom prices are contributing to the high cost of living. Neither is true.
The increase in complaints is likely due in large part to CCTS’s efforts to raise public awareness about its services and changes to CCTS’s complaints process, the former contributing to a 60% increase in visits to its website. In other words, a rise in complaints filed with CCTS does not indicate a decline in customer service, rather it shows that more people are aware of CCTS’s services. This is a positive development. Our members aim to ensure every interaction with the millions of Canadian telecom subscribers are positive and that any issues are resolved satisfactorily, including those that go through the CCTS process.
As CCTS indicates, issues can arise for a variety of reasons, including misunderstandings or confusion about a contract or bill. If a customer contacts CCTS, CCTS first notifies the service provider to see if the provider can resolve the matter without CCTS having to investigate further. Encouragingly, CCTS reports that 88% of complaints were resolved by the customer and service provider without CCTS having to investigate. This includes cases where the service provider went beyond its policies and contract terms to ensure a positive outcome for the customer all the same.
Where CCTS did investigate a complaint, it found that incidents of non-compliance by service providers of the Wireless Code were down for the fourth year in a row, and none of our members had more than a single Internet Code violation across the entire 2023-24 reporting year. It is also important to note that, despite the increase, the number of complaints remains low, with less than 0.08% of high-speed broadband and 0.05% of mobile phone subscribers raising issues.
While the annual CCTS report often generates sensational headlines, a more accurate assessment of customer satisfaction can be found in surveys like the one conducted by RBC Capital Markets (RBCM). In its December 18, 2024, equity research report, RBCM showed a high level of consumer satisfaction with average rankings of 6-7 out of 10 for satisfaction with internet and wireless service providers. Additionally, 88% of wireless subscribers and 82% of internet service subscribers who were unlikely to switch providers cited satisfaction with their current provider as the reason.
No doubt one of the drivers of high customer satisfaction is the decline in telecom prices, which help combat the rising cost of living. While the price of most items has been increasing, Statistics Canada data shows that cellular service prices declined 11.2% from November 2023 to November 2024, and internet access service prices declined 3.7% over the same period. Impressively, cellular service prices have declined by 49.5% over the last five years. Additionally, in each of its last nineteen monthly Consumer Price Index Reports, Statistics Canada has identified telephone services (including landline and cellular) as a leading year-over-year downward contributor against higher inflation, with internet access services being listed as a leading downward contributor in four of the past ten monthly reports.
Even with high levels of customer satisfaction and declining prices, our members remain committed to continually improving customer experience, including working with CCTS to ensure positive outcomes for all customer interactions.