Canada’s telecommunications sector contributed $80.8 billion to the country’s GDP and supported nearly 782,000 jobs across industries in 2023, according to a new PricewaterhouseCoopers (PwC) report commissioned by the Canadian Telecommunications Association (CTA).
The report, titled Driving Canada’s productivity: The impact of the telecom sector and its role in improving productivity, found the Canadian telecom sector invested $11.4 billion in capital expenditures in 2023 to continue expanding, enhancing and strengthening the country’s wireless and broadband networks.
On average, Canadian telecom providers reinvested 17.9 per cent of service revenues in 2023, exceeding the average reinvestment rates in the United States (14.6 per cent), Australia (11.7 per cent) and Europe (13.6 per cent), according to the report. In addition, this amounts to reinvestment of 42.6 per cent more per subscriber, on average, than service provider peers in the U.S., Japan, Australia and Europe, the report said.
The report noted Canadian telecom provider investments were made despite a decline in telecom prices, citing Statistics Canada consumer price index data that showed cellular and internet access service prices fell 26.2 per cent and 15.5 per cent, respectively, from March 2023 to March 2024.
The PwC report estimates the Canadian telecom sector could contribute an additional $112 billion to Canada’s GDP by 2035, through the delivery of enhanced connectivity including 5G, helping to drive a rebound in Canadian productivity by enabling the digital transformation of the country’s economy.
“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,” John Simcoe, national media and telecom lead at PwC Canada, said in a press release highlighting the report’s findings. “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 CTA. “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.”
Among other key findings, PwC’s report found 99.7 per cent of Canadians by 2023 had access to mobile wireless network coverage (combined coverage of HSPA+, LTE, LTE-A and 5G), and 93.5 per cent of Canadian homes and businesses had high-speed internet access (50/10 Mbps speeds with unlimited data).
Canadian telecoms have made good progress in bringing advanced connectivity to First Nations reserve areas, increasing the availability of 50/10 Mbps internet access to First Nations communities by 85 per cent since 2016, according to the report.
Front cover image of PwC’s report.
