Telecom Fees Definitions Updated

Summary#

The Regulations Amending the Telecommunications Fees Regulations, 2010 change two definitions used to calculate telecom fees. The amendments were made by the Canadian Radio-television and Telecommunications Commission and came into force on March 13, 2023 (published in the Canada Gazette on March 29, 2023).

What it does#

• Replaces the definition of “contribution-eligible revenues” so the fees calculation uses the same formula as in Telecom Information Bulletin CRTC 2019-396, titled The Canadian revenue-based contribution regime (effective January 1, 2020, published December 4, 2019).
• Updates the definition of “related” to match the meaning of “related party” in International Accounting Standard 24 as set out in the CPA Handbook — Accounting (as amended).

Who's affected#

• Primarily Canadian companies that provide telecommunications services and must report fees and contributions to the CRTC.
• Accountants and finance teams that prepare the revenue and related-party calculations for those companies.
• The notice itself does not name other specific groups; if that is unclear, those directly responsible for telecom fee reporting are the most likely to notice the change.

Why it matters#

• The change aligns the fees calculation with the existing contribution regime. That should make annual reporting clearer and reduce duplicated or conflicting calculations for telecom providers.
• Using a common accounting definition for “related” reduces ambiguity about which entities count as related parties when computing revenues.
• For companies that report telecom fees, this can save time and lower the risk of reporting errors.