OTTAWA — Canada’s telecommunications industry contributed up to $70.7 billion to the country’s gross domestic product (GDP) in 2020 and supported almost 600,000 jobs, according to a new Accenture report commissioned by the Canadian Wireless Telecommunications Association (CWTA).
This is despite the Covid-19 pandemic and the resulting 5.4% contraction in the Canadian economy last year, says a CWTA press release announcing availability of the report today.
The 2020 study conducted by Accenture Strategy and Consulting is an annual review of the telecom industry’s impact on Canada’s economy. In line with the 2019 report, “this year’s study continues to focus on the economic impact of both wireless and wireline communications service providers in 2020 and their role in the Covid-19 recovery,” reads a description about the study, which is available on the CWTA’s website here.
According to the study, titled Connecting Canadians during Covid-19: The impact of the wireless and wireline industry in 2020 and beyond, four key trends emerged around the consumption of telecom services during the pandemic: a pivot towards the digital economy; a decline in city-centric living; the advent of unconventional ways to socialize; and the rise of remote working.
“The Covid-19 pandemic highlighted the importance of connectivity for Canadian society, business, and the economy. With sustained, accelerated growth in digital traffic, Canada’s facilities-based operators continued to invest in building additional capacity and further upgrading and expanding critical telecommunications infrastructure and services, setting the stage for a resilient and sustainable economic recovery post-pandemic,” reads the press release.
Among the report’s other key findings are the following:
- The rise in new connections for telecom services “generated increases in sales across other industries in Canada valued at $47.9 billion in GDP contributions (including, for instance, $6.4 billion in incremental output in health care)”, according to the release;
- The telecom industry invested more than $11 billion in wireless and wireline connectivity in 2020;
- Service providers invested approximately $12 billion in employee salaries and benefits in 2020, providing more than 120,000 high quality jobs to Canadians;
- Service providers supported Canada through an estimated $6.8 billion in taxes; and
- Service providers contributed more than $245 million to charities and not-for-profits.
“The telecommunications industry has played a key role in keeping Canadians connected since the outbreak of Covid-19 and it is clear that Canada’s high quality digital infrastructure has been crucial in sustaining economic and social activity across the country,” said Robert Ghiz, president and CEO of the CWTA, in the press release.
“Despite the economic headwinds of 2020, Canada’s telecom operators continued to invest billions of dollars to expand and upgrade Canada’s telecommunications infrastructure, and provided additional support to Canadians dealing with the hardships of Covid-19.”
Image borrowed from CWTA/Accenture’s report.
