(Graphic by Naomi Wildeboer/Hill Times Publishing)
CRTC considering raising telecom contribution threshold
Regulatory | |August 13, 2025
The CRTC is seeking input on a proposed increase of the revenue threshold that determines which telecom service providers must contribute to the National Contribution Fund (NCF) and pay telecom fees.
The request stems from an application filed last year by the Independent Telecommunications Providers Association (ITPA), seeking to raise the threshold for contribution levies from $10 million to $25 million. The association also asked for it to be made retroactive to the beginning of 2024. In the interventions that followed, the Competitive Network Operators of Canada (CNOC) expressed support for the proposal, while major telecom companies including BCE Inc., Telus Corp., Rogers Communications Inc., and Quebecor Inc. stood opposed.
The CRTC decided that “further inquiry” is necessary and is seeking feedback on three potential threshold increases: $25 million, $50 million, or $100 million. The regulator laid out the expected financial impacts of each scenario based on 2024 figures.
Currently, 129 individual telecom service providers (TSPs) — or 80 groups of “related” TSPs — pass the $10 million revenue threshold and have to contribute to the NCF and pay annual telecom fees, according to the CRTC. This year, those providers are set to contribute $184.7 million to the NCF, representing 0.46 per cent of their “contribution-eligible revenues.” For the 2025-2026 fiscal year, $61.1 million in telecom fees were paid by TSPs.
If the threshold is raised to $25 million, 42 of the 129 TSPs (32 of the 80 groups) would no longer have to contribute, says the CRTC. That represents 0.73 per cent, or $1.79 million, of total NCF contributions and annual telecom fees, which would need to be recovered by the remaining 87 TSPs. The CRTC explained that this would require a slight increase of the NCF revenue charge, from 0.46 per cent to 0.47 per cent.
If set at $50 million, 75 of the 129 TSPs (or 54 of the 80 groups) would sit below the threshold and be exempt. This makes up 1.9 per cent, or $4.66 million, of total funds that would need to be recovered by the remaining 54 TSPs. To account for the NCF portion, the revenue charge will also have to go up to 0.47 per cent.
Finally, with a $100 million threshold, 89 of the 129 TSPs (61 of the 80 groups) would be exempt. These companies represent 2.54 per cent, or $6.23 million, of the combined NCF contributions and annual telecom fees — translating to $4.68 million for the NCF and $1.55 million in fees. This amount would be absorbed by the remaining 40 TSPs (19 groups) and result in an NCF revenue charge of 0.48 per cent.
Stakeholders are asked to comment on each of the proposed scenarios and the potential impact that they would have on their businesses, by Sept. 12. The CRTC also invited them to suggest alternative scenarios.
