Two of Canada’s largest telecom service providers came out swinging late Thursday in response to new details released by the federal government about its mission to drive down cellphone rates. Telus Inc. and Bell Canada suggested the plan could sour their appetite to invest and also put jobs at risk as the country prepares to advance highly-anticipated 5G wireless networks. 

The government said Canada's three largest telecom service providers, Rogers Communications Inc., Telus, and BCE Inc. through its Bell division, "will be expected" to slash the cost of two-to-six gigabyte data plans by 25 per cent over the next two years. The government said prices will be measured – or “benchmarked” – against what was being advertised online in early 2020 for postpaid, bring-your-own-device plans.

"If these targets are not met within two years, the government will take action with other regulatory tools to further increase competition and help reduce prices," according to a press release Thursday afternoon from Innovation, Science and Economic Development Canada.

“Everything is on the table,” said Industry Minister Navdeep Bains in an interview with BNN Bloomberg, when asked about tools at the government’s disposal to achieve its price goal.

“How we deploy future spectrum, for example. How we look at additional competition through mobile virtual network operators. So everything is fair game. But bottom line is, we want to see prices come down by 25 per cent.”

Under a scenario presented by the government Thursday, a family of four could save as much as $720 a year after a 25-per-cent cut from a benchmark price of $60 for 6GB data plans.

“It is extremely disappointing to see that the 25 per cent decreases are limited to the national carriers,” said Telus spokesperson Richard Gilhooley in an emailed statement to BNN Bloomberg. “This is yet another punitive action taken by this government against the companies that have built Canada’s global-leading wireless networks - and which are being asked to invest billions of dollars to ensure Canadians can benefit from next generation 5G technology.” 

He claimed the government’s approach “jeopardizes hundreds of thousands of skilled jobs in Canada, as well as the millions of jobs associated with our global supply chains” and pointed out Telus operates in more than 20 countries, where he described the dynamic with governments as being more collaborative and supportive.

“This contrast is giving [Telus] reason to think very carefully about where our next investment dollars should go,” according to Gilhooley.

In a separate move designed to push down prices and bolster competition, the government said there will be set-asides for small and regional telecom players in the upcoming 3500 MHz spectrum auction that will be crucial for the deployment of 5G technology. According to the government, 50 MHz will be reserved in certain markets where there's sufficient spectrum.

Bell Canada spokesperson Marc Choma said the telco will study the government’s announcement.  

“Policies discouraging investment, including regulating wireless pricing or continuing to deny fair access to spectrum for all competitors, put jobs and innovation at risk in an industry that’s delivering tremendous value to consumers,” Choma said in an email to BNN Bloomberg

“It’s the worst time to jeopardize our country’s wireless success as carriers look to ramp up investment for the global move to 5G wireless.”

Rogers Communications spokesperson Sarah Schmidt declined to comment on the specifics of the government’s announcement.

“We operate in a highly competitive market that continues to deliver more affordability and value, and we always evolve our services to meet the needs of Canadians,” Schmidt told BNN Bloomberg via email.

The spectrum auction is scheduled to begin Dec. 15. Interested participants will have to apply to the government and provide a deposit by Oct. 13.

BNN Bloomberg is a division of Bell Media, which is owned by BCE.