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But for those who suspect the cuts are an empty threat — it’s a common refrain in the telecom industry whenever new regulations are on the table — Entwistle said this isn’t “theatre perpetrated by incumbents.”

Telus’ board of directors signed a resolution instructing management to pursue the spending reduction plan should the CRTC mandate wireless reselling, he said, adding he would file the memo confidentially to the CRTC.

Earlier this week, BCE Inc. chief executive Mirko Bibic said Bell’s annual capital spending would be “significantly less” than the $4 billion it currently spends if the CRTC mandates wholesale access.

By Bell’s calculations, overall industry investment will drop by $500 million annually should the rules go through.

On Friday, regional operator Eastlink told the CRTC it has already cut $60 million from its capital budget due to the prospect of mandated wireless access and a separate decision that reduced rates for wholesale access to fixed internet connections.

The wireless review comes after the Liberals made a campaign promise to improve cellphone affordability. Canadians have historically paid higher wireless rates than their peers around the world. Prices have dropped in the past couple years with the ramp up of competition from regional players and in anticipation of regulatory pressure, particularly with the introduction of unlimited plans last summer, but the perception of out-of-whack prices remains.

Still, it appears the government want another 25 per cent drop from prices at the time they were elected, months after the biggest players made changes that put a big dent in data costs and data overage charges.

The wireless review hearing continues until Feb. 28.