Telecom contributes $80 billion to economy, says CTA study

TORONTO – A new survey done for the Canadian Telecommunications Association (CTA) finds that the telecom sector contributes more than $80 billion to the Canadian economy and supports more than three quarters of a million jobs. The report, entitled Driving Canada’s productivity: the impact of the telecom sector and its role in improving productivity, finds the industry is responsible for $80.8 billion in GDP and supports 782,000 jobs. The figures are for 2023. Prepared by PricewaterhouseCoopers (PwC) and released on Monday at this year’s Canadian Telecom Summit, the study is part of the associations’ annual series examining the economic impact of the telecom sector. The study states the sector invested $11.4 billion in capital expenditures to expand networks. This is 42.6 per cent more than TSPs in the United States, Japan, Australia and Europe. The survey notes that all this investment occurred even as prices decline. Wireless prices fell 26.2 per cent and internet costs declined 15.5 per cent. Other key indicators in the economy such as gasoline, energy, food and shelter all skyrocketed over the same period. “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, PwC’s lead for national media & telecom, said in a statement. PwC estimates that the industry could deliver a further $112 billion in GDP by 2035. This is in contrast to the slumping productivity in the Canadian economy as a whole. In 2023, the economy only grew by one per cent overall. “Canada’s telecom sector is integral to our country’s economic growth and digital future,” CTA president Robert Ghiz was quoted as saying in the same release. “By continually upgrading our networks and extending services to underserved areas, our industry is fostering greater economic opportunity, inclusivity and productivity.” By last year, 99.7 per cent of Canadians had access to wireless network coverage and 93.5 per cent had broadband internet access. Seeking to bridge the digital divide, the industry has increased the availability of 50 Mbps download/10 Mbps upload speeds to First Nations reserves. Access has jumped 85 per cent since 2016. The study warns that climate change can have an impact on telecommunications. High winds from hurricanes and tornadoes can damage cell towers and overhead lines. Flooding causes erosion, leading to the exposure of cables and causing complications for repairs. The five major telecom operators in Canada made more than $350 million in charitable contributions last year, the report notes. – Reporting by Paul Park at ppark@thewirereport.ca

Telecom contributes $80 billion to economy, says CTA study

News | June 17, 2024

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Telecom contributes $80 billion to economy, says CTA study

News | June 17, 2024

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