Canada’s telecommunications sector contributed $87.3 billion in direct GDP and supported 661,000 jobs across industries in 2024, according to a new PricewaterhouseCoopers report (PwC) released Tuesday morning.
The report, Enabling Canada’s Economic Independence and Global Competitiveness Through Telecommunications, was commissioned by the Canadian Telecommunications Association (CTA), which represents carriers, equipment manufacturers and other companies that build, maintain and operate telecom networks in Canada, including Bell, Rogers, Videotron, SaskTel, Eastlink, Tbaytel, Xplore, Ericsson Canada and Nokia Canada.
The $87.3 billion in GDP contributed by Canada’s telecom sector includes $30.1 billion in immediate direct GDP generated by the sector itself and $57.2 billion in direct GDP outside the telecom sector through increased productivity and business enablement across other industries, the PwC report said.
The report found Canadian telecom providers invest in their networks at a higher rate than other global telecoms, spending approximately $282 per capita on network development in 2024, and that the capital intensity ratio for major Canadian telecom providers averaged 18 per cent from 2020 to 2024, compared to 14 per cent in the U.S., 17 per cent in the U.K., and 10 per cent in Australia over the same period.
While making these investments, Canadian telecom providers have reduced the prices of their service plans, PwC’s report noted. Cellular services experienced the most significant reduction among major Statistics Canada Consumer Price Index (CPI) categories, decreasing by 50.4 per cent between January 2020 and December 2024, according to the report, while prices for internet access services also decreased, declining by 6.4 per cent during the same period.
Furthermore, based on figures from the CRTC’s Canadian Telecommunications Market Report and Statistics Canada’s CPI from February 2020 to September 2024, the lowest average reported monthly price for 10 GB mobile plans fell by $41, representing a 65.1-per-cent decrease in real terms adjusted for inflation over the period, according to PwC’s report. The lowest average monthly price for 50 GB mobile plans declined by $84, representing a 72.5-per-cent decrease in real terms adjusted for inflation, the report said.
Over the same period, the lowest average monthly price for 50/10 Mbps internet plans fell by $22, a 38.6-per-cent decrease in real terms adjusted for inflation, while the price of Gigabit+ plans fell by $40, a 45.2-per-cent decrease in real terms adjusted for inflation, the PwC report said.
“The key to generating long-term growth and independence for the Canadian economy is investment in the tools and infrastructure that will make Canadian businesses more innovative, productive, and competitive,” said Robert Ghiz, president and CEO of the CTA, in a statement. “A more productive Canada will raise our GDP, increase jobs and workers’ wages, and help support important social programs. Our telecom networks are the foundation of this transformation, and it is crucial for all levels of government to consider the impact of their regulations and policies on the capacity of our sector’s ability to make the investments required to meet the economy’s needs for advanced telecommunications.”
