A new industry report, commissioned by the Canadian Telecommunications Association, has spotlighted the critical role of telecommunications infrastructure in driving Canada’s productivity and economic growth.
According to PwC’s report, the telecom sector not only contributes significantly to the gross domestic product (GDP) but also supports job creation across various industries.
In 2024, the Canadian telecommunications sector contributed USD 87.3 billion to direct GDP and sustained 661,000 jobs nationwide. Of this, USD 57.2 billion in GDP was directly attributed to increased telecommunications connections, enhancing productivity across sectors.
The report highlighted that Canadian telecom providers outpaced their global counterparts in network investment, spending USD 282 per capita on network development in 2024.
Over the period from 2020 to 2024, major Canadian telcos maintained an average capital intensity ratio of 18%, surpassing investment levels seen in the U.S., U.K., and Australia.
Despite rising costs, Canadian telcos managed to mitigate consumer impact by lowering service plan prices. For instance, from February 2020 to September 2024, prices for 10 GB mobile plans dropped by USD 41, and 50 GB plans decreased by USD 84. Similarly, internet plan costs also saw reductions during this period.
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“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 Canadian Telecommunications Association. He continued:
“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.”
However, the report also underscored the challenges the sector is facing, including cost escalations, revenue declines, fierce competition, and regulatory complexities, which pose significant investment pressures.
Beyond economic contributions, PwC noted that telecom infrastructure investments foster innovation, improve operational efficiency, and drive economic modernization. The sector plays a crucial role in developing efficient trade routes, connecting rural communities, and modernizing industries like mining.
Bearing the report’s findings in mind, sustained investment in telecommunications infrastructure has emerged as pivotal for Canada’s economic resilience, competitiveness, and future growth.
