Reducing wireless revenues by 25 per cent due to regulation would lead to a shortfall of up to $15 billion over five years, according to a BCG report. (The Logic)
Talking point: The report comes as telecoms are facing significant pressure to cut their prices. Prime Minister Justin Trudeau won a minority government promising to cut internet and mobile phone rates by 25 per cent, working with telecoms and then regulating them if necessary. Large telecoms are currently petitioning the cabinet to overturn a ruling requiring them to charge smaller firms cheaper rates for access to their networks. BCG did not reply to The Logic’s question regarding whether any telecoms were involved in the drafting of this report. It’s the second recent call for a middle ground in telecom regulation; in November, the Competition Bureau called for the largest telecoms to be required to sell even more access to smaller carriers, but only on a temporary basis contingent on those firms building their own networks.