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We are still reviewing the report and its recommendations, but were encouraged to see the panel’s acknowledgement of the importance of investment … Telus statement

In an election promise, and follow-up commitments in the throne speech, the Liberal government has said it will bring down cellphone bills by 25 per cent, with MVNOs being a potential avenue to do so.

Last week, as Rogers Communications Inc. reported earnings, chief executive Joe Natale said in the context of the MVNO debate that if regulation of wireless networks became too onerous, it could force his company to cut investment, which would stall the rollout of 5G networks in Canada.

Adam Shine, an equity analyst covering the telecom companies for National Bank, said that he wasn’t surprised by any of the BTLR recommendations, but that it remains to be seen how much of the report actually gets enacted in law.

Shine noted that a heavy-handed regulatory approach can undermine investment, but he said that some reform is needed.

“Added efforts to better monitor and measure key metrics in the markets would provide the regulator with more up-to-date data with which to make better decisions instead of relying on information that is one or two years old heading into key hearings,” Shine said in an email to the Financial Post.

The BTLR report also called calls for legislative changes to prevent lengthy appeals processes to CRTC.

Photo by National Post file photo

That recommendation was welcome news to Matt Stein, chief executive of Distributel, one of the small telecom companies that relies on wholesale rate access to the big telecoms’ networks.

The resellers won a favourable decision from the CRTC in 2019 on wholesale rates, but Rogers and BCE Inc. are now appealing that decision to the courts.