The telecommunications sector directly contributes nearly $81 billion to the Canadian economy and supports nearly 782,000 jobs across industries, according to a new report

The PwC report found that Canadian telecommunications providers have lowered prices for consumers while investing more in their networks than their international competitors, enabling more Canadians to have access to the better connectivity that is essential to growing the digital economy and increasing Canada work productivity.

TORONTO, June 17, 2024 /CNW/ – Canada The telecommunications sector powers the Canadian economy and helps fight inflation while laying the foundations for future economic growth and productivity gains, a new report shows.

In a report commissioned by the Canadian Telecommunications Association titled Driving Canada Productivity: The impact of the telecommunications sector and its role in improving productivityPricewaterhouseCoopers (PwC) says the telecommunications sector continues to play an important role in the Canadian economy, contributing to $80.8 billion to Canadian GDP and supporting almost 782,000 jobs across industries in 2023.

The report shows that the telecommunications sector has invested $11.4 billion in capital investments in 2023 to continue to develop, refine and strengthen Canada world-class wireless and broadband networks. This represents an average reinvestment of 42.6% more per subscriber compared to other US service providers, Japan, Australia AND Europe.

Specifically, the report noted that these significant investments were made despite continued declines in telecommunications prices in Canada, with prices for cellular services and Internet access falling by 26.2% and 15.5%, respectively, compared to March 2023 Down March 2024.

PwC estimates that in addition to the telecommunications industry’s current economic contribution, the sector has the potential to make additional contributions $112 billion to Canadian GDP by 2035 and help Canadian productivity rebound by enabling digital transformation Canada economy. At a time when declining productivity has led to a relative decline in living standards in Canada and threatens to impact the country’s ability to compete on the global economic stage, investment in the telecommunications industry, which drives growth in other industries, is becoming increasingly important to the country’s broader economic progress.

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“When Canada productivity faces significant challenges, the telecommunications sector is laying the foundations for a more prosperous economic future,” he said John Simcoe, director of national media and telecommunications at PwC Canada. “By continuing to invest significantly in our networks, even in the face of falling prices and rising costs, Canadian telecommunications providers are not only improving connectivity for millions of Canadians, but also setting the stage for significant productivity gains and economic growth. Further investment in Do’s digital infrastructure is necessary Canada to realize its productivity potential and sustain economic growth.”

“Canada The telecommunications sector is an integral part of our country’s economic growth and digital future. By continually modernizing our networks and expanding services to underserved areas, our industry is delivering greater economic opportunity, inclusion and productivity,” he said Robert Ghiz, president and CEO of the Canadian Telecommunications Association. “To sustain and expand this contribution and ensure we continue to build a robust digital future for all Canadians, it is imperative that we have a stable regulatory environment that encourages continued investment.”

Key conclusions from the report:

Economic impact

• The telecommunications sector is estimated to have contributed to this $80.8 billion Down Canada GDP in 2023 (increase by over 5%). $76.7 billion in 2022) and supported approximately 782,000 jobs in Canadian industries (up 8% from 724,000 in 2022)*.

• Better connectivity, including 5G, can make an additional contribution $112 billion Down Canada overall GDP by 2035, enabling individuals and businesses to connect to the digital economy.

Investment

• The Canadian telecommunications sector has invested $11.4 billion capital spending in 2023 to expand and improve connectivity for Canadian homes and businesses.

• Canadian telecommunications providers reinvested an average of 17.9% of service revenues in 2023, exceeding average U.S. reinvestment rates (14.6%). Australia (11.7%) i Europe (13.6%).

• Canadian telecommunications providers invested an average of 42.6% more per subscriber than their U.S. competitors, Japan, Australia AND Europe.

Falling prices

• The cost of mobile services dropped by 26.2%. March 2023 Down March 2024 while the costs of Internet access services decreased by 15.5% in the same period.

• While the cost of mobile services dropped by 41%. Canada between 2020 and 2024, prices in the US and UK increased by 2% and 14% respectively over the same period.

• Even as costs fall, Canadians are using more data. Mobile subscribers’ average monthly data traffic increased by 25% in 2022-2023, while broadband subscribers’ average monthly data usage doubled since 2019.

Expanding your reach

• By 2023, 99.7% of Canadians had access to wireless cellular coverage where they work and live, and 93.5% of Canadian homes and businesses had broadband internet access.

• Service providers are committed to bridging the digital divide and have made significant progress in providing advanced connectivity to First Nations reserves, most notably increasing the availability of 50/10 Mbps internet access to First Nations communities by 85% since 2016.

Sector challenges and opportunities

• The report highlights ongoing challenges facing the telecommunications sector, including falling prices, high borrowing costs, increased competition from international over-the-top (OTT) players, rising network costs and climate-related risks.

• Despite unfavorable conditions, this sector remains a key driver of economic growth Canada prosperity through its contribution to GDP, job creation and investment in digital infrastructure.

• The continuous improvement and expansion of advanced telecommunications networks is crucial to maintaining economic growth in the digital economy and increasing national productivity. The report pointed to Bank of Canada finding that there is a positive correlation between digital infrastructure investment, ICT adoption and labor productivity growth.

“These findings highlight the vital role our sector plays in driving Canada digital economy,” said Ghiz of the telecommunications association. “By continuing to invest in and improve our networks, we are not only improving connectivity, but also creating economic opportunities for all Canadians.”

Driving Canada Productivity: The impact of the telecommunications sector and its role in improving productivity can be found at https://canadatelecoms.ca/wp-content/uploads/2024/06/Driving-Canadas-Productivity.pdf

*2022 data based on a previous report commissioned by the Canadian Telecommunications Association

About the Canadian Telecommunications Association

The Canadian Telecommunications Association strives to build a better future for Canadians through connectivity. Our members are service providers, equipment manufacturers and other organizations in the telecommunications ecosystem that invest, build, maintain and operate Canada world-class telecommunications networks. Through our advocacy initiatives, research and events, we work to promote the importance of telecommunications for Canada economic growth and social development and advocates policies that favor investment, innovation and positive outcomes for consumers. We also support industry initiatives such as Mobile Giving Foundation Canada, Canadian Common Short Codes, STAC and wirelessaccessibility.ca

SOURCE Canadian Telecommunications Association

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