Complaints About Telecom Providers Hit Record Levels Last Year: Watchdog Report

Complaints About Telecom Providers Hit Record Levels Last Year: Watchdog Report
A person uses a cellphone in Ottawa on July 18, 2022. The Canadian Press/Sean Kilpatrick
The Canadian Press
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Complaints about phone, internet and television services jumped 38 percent in the 2023-24 reporting year, says the watchdog that handles grievances about Canadian telecommunications providers.

The annual study by the Commission for Complaints for Telecom-television Services said it handled a record 20,147 complaints from customers between Aug. 1, 2023 and July 31, 2024. It said it was able to resolve 88 percent of them.

Consumers’ most common gripe had to do with billing issues, up 47 percent from the previous year, including unexpected charges, surprise price increases, or failure by carriers to provide promised credits or refunds.

“The bill is where the rubber meets the road,” said CCTS commissioner and CEO Howard Maker, cautioning that “bills change all the time.”

“Anything that can go wrong in the process, in the service, typically sources from the bill somehow, and that’s why it’s really important for customers to examine their bills.”

More consumers also complained that their contracts are unclear and missing important information, with that category up 35 percent.

Maker said it’s important for service providers to be clear and concise so customers understand what they’re getting into.

“These are complex services,” he said.

“So there will be misinterpretations, misunderstandings or lack of clarity.”

The commission’s report comes as Canada’s national telecom regulator undertakes multiple studies aimed at addressing some of these same issues.

Late last year, the CRTC launched four consultations focusing on how to give consumers more control over their internet and cellphone services. Those included a study looking into potential measures to ensure people are notified when their plans or discounts are about to end, to avoid bill shocks.

The CRTC is also considering whether internet service providers should be required to display information through a standardized label, similar to nutrition labels on food products, which would inform consumers about things like price and speed.

Its other consultations are looking into whether there should be rules preventing providers from charging customers when they cancel or change plans, as well as potential self-serve options for when customers wish to switch providers.

The CCTS report highlighted a “troubling increase” in problems with service cancellation and switching service providers.

Reports of being unable to cancel a service appeared in complaints 47 percent more often than the previous year, concerns about termination fees increased 35 percent, and complaints about being unable to transfer wireless or phone services to another provider increased by one-quarter.

Maker called the trend a “head-scratcher.”

“Consumers are supposed to be able to switch simply, easily, no muss, no fuss, and it’s not happening,” he said.

“I do not understand why this is such a big problem in the industry, but the numbers are not lying.”

Other frequent complaints highlighted in the report were based on service performance problems, with customers continuing to raise issues about interruptions, slower than expected internet or wireless data speeds, poor audio quality or dropped phone calls.

But the Canadian Telecommunications Association cautioned that the increase in complaints did not necessarily indicate customers are growing less satisfied with their providers.

Rather, it said customers are now more aware of the CCTS' work than in past years thanks to recent awareness campaigns, while complaints could also be up due to changes by the commission meant to streamline the filing process.

“Despite this, the number of complaints remains relatively low, with the number of issues raised representing less than 0.08 percent of high-speed broadband and 0.05 percent of mobile phone subscribers in Canada,” said spokesman Nick Kyonka in a statement.

The association, which represents many carriers and manufacturers, said the report showed incidents of non-compliance of the Wireless Code were down for the fourth year in a row, and none of its members had more than a single Internet Code violation.

Rogers accounted for more than 24 percent of all complaints accepted by the commission in the period included in its report, maintaining its position as the most complained-about service provider after overtaking Bell a year ago.

With 4,855 complaints, Rogers saw an almost 68 percent increase in reports to the commission from its customers compared with a year earlier.

“As Canada’s largest wireless and national cable company, we work hard every day to do the right thing for our customers and to deliver a great experience,” said Rogers spokesman Zac Carreiro in a statement.

“We have millions of customer interactions every month and while only a small number result in a complaint, we know we can do better.”

Bell had 3,430 complaints, or 17 percent of all gripes, up nearly 46 percent from the commission’s previous annual report.

But Bell spokeswoman Jacqueline Michelis noted the company’s share of complaints in the report has fallen by around 44 percent over the past five years.

“While we always strive to do more for our customers, we are taking some positives from the most recent report,” she said in a statement, also highlighting that Bell had 2.2 complaints per 10,000 subscribers—the best result for that metric of the three largest service providers.

“Importantly, we review every CCTS complaint with a focus on addressing the root cause of the challenge and making it better for all Bell customers.”

There were 2,757 complaints about Telus Corp., 13.7 percent of the total and up more than 53 percent from the previous year.

The complaint volume ranking remained the same when combined with those made by customers of the various subsidiary brands owned by the Big 3 providers.