Press Release
TORONTO, June 17, 2024 – Canada’s telecommunications sector is powering the Canadian economy and helping combat inflation while laying the foundation for future economic growth and productivity gains, a new report says.
In a report commissioned by the Canadian Telecommunications Association entitled Driving Canada’s productivity: The impact of the telecom sector and its role in improving productivity, PricewaterhouseCoopers (PwC) says the telecommunications sector continues to play an important part in the Canadian economy, contributing $80.8 billion to the Canadian GDP and supporting nearly 782,000 jobs across industries in 2023.
The report finds the telecommunications sector invested $11.4 billion in capital investments in 2023 to continue expanding, enhancing, and strengthening Canada’s world-class wireless and broadband networks. This amounts to reinvestment of 42.6% more per subscriber, on average, than service provider peers in the U.S., Japan, Australia and Europe.
Notably, the report says these significant investments were made despite a steady decline in Canadian telecom prices, with cellular and internet access service prices falling 26.2% and 15.5%, respective, from March 2023 to March 2024.
In addition to the telecom industry’s current economic contributions, PwC estimates the sector could deliver an additional $112 billion to the Canadian GDP by 2035 and help drive a rebound in Canadian productivity by enabling the digital transformation of Canada’s economy. In a period when slumping productivity has led to a relative decline in Canadian living standards and threatens to impact the nation’s ability to compete on the global economic stage, telecom industry investments that drive growth in other industries are increasingly important to the country’s broader economic progress.
“At a time when Canada’s productivity is facing significant challenges, the telecommunications sector is laying the essential groundwork for a more prosperous economic future,” said John Simcoe, National Media & Telecom Lead at PwC Canada. “By continuing to invest heavily in our networks, even amid declining prices and rising costs, Canadian telecom providers are not only enhancing connectivity for millions of Canadians but also setting the stage for substantial productivity gains and economic growth. Continued investment in digital infrastructure is essential for Canada to realize its productivity potential and sustain economic growth.”
“Canada’s telecom sector is integral to our country’s economic growth and digital future. By continually upgrading our networks and extending services to underserved areas, our industry is fostering greater economic opportunity, inclusivity and productivity,” said Robert Ghiz, President and CEO of the Canadian Telecommunications Association. “To sustain and enhance these contributions and ensure we can keep building a robust digital future for all Canadians, it is essential that we have a stable regulatory environment that encourages continued investment.”
Economic Impact
Investment
Declining Prices
Expanding Coverage
Sector Challenges and Opportunities
“These findings underscore the essential role of our sector in driving Canada’s digital economy,” said the telecommunications association’s Ghiz. “As we continue to invest in and enhance our networks, we are not only improving connectivity but also driving economic opportunities for all Canadians.”
Driving Canada’s productivity: The impact of the telecom sector and its role in improving productivity can be found at https://canadatelecoms.ca/wp-content/uploads/2024/06/Driving-Canadas-Productivity.pdf
*2022 figures based on previous Canadian Telecommunications Association commissioned report
The Canadian Telecommunications Association is dedicated to building a better future for Canadians through connectivity. Our members include service providers, equipment manufacturers, and other organizations in the telecommunications ecosystem, that invest in, build, maintain and operate Canada’s world-class telecommunications networks. Through our advocacy initiatives, research, and events, we work to promote the importance of telecommunications to Canada’s economic growth and social development and advocate for policies that foster investment, innovation, and positive outcomes for consumers. We also facilitate industry initiatives, such as the Mobile Giving Foundation Canada, Canadian Common Short Codes, STAC and wirelessaccessibility.ca
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