Ofcom has outlined improvements to the way consumer complaints are dealt with in the telecoms sector, and is recommending changes to the current system.

Under the new proposals telcos could be fined a whopping 10 per cent of annual revenue if they are found in breach of regulations.

The telcos could also face caps on charges extended to complaint-related customer calls.

Ofcom is also proposing that telecoms companies should be forced to keep records of complaints for a period of 15 months to make it easier to assess their performance.

Complainants who fail to resolve their issues directly with their provider could see waiting times cut from 12 to eight weeks before taking their complaint to an Alternative Dispute Resolution service.

Telcos will be required to write to customers who have made a complaint to inform them that they have the right to resolution.

"Effective complaints handling and an accessible scheme for resolving disputes ensure that individual consumers are able to seek redress when things go wrong," said Ofcom chief executive Ed Richards.

"Inadequate or inappropriate procedures can cause significant harm and detriment to consumers."

Industry watchers, however, will not be holding their breath in the run up to the regulator's final conclusion.

The current consultation process runs until 4 October, and a statement is not expected to be published until early next year.