Federal budget aims to boost affordability, productivity in Canadian telecom, AI, cultural sectors

The new federal budget, framed by the government as a strategic response to a “generational shift” in the international order, proposes a series of fiscal and policy measures meant to spur investment and productivity across Canada’s technology, telecommunications, and cultural sectors. Finance Minister François-Philippe Champagne tabled Prime Minister Mark Carney’s first budget in the House of Commons Tuesday afternoon, Nov. 4. It presents investments in artificial intelligence infrastructure, reforms meant to boost telecom network buildout and competition, and funding boosts for CBC/Radio-Canada and various organizations and funds dedicated to the film, music, and journalism industries. Cutting hurdles to telecom deployment Budget 2025 proposes several policy measures aimed at cutting red tape and accelerating network deployment. The government plans to pursue a new “dig once” policy approach for its major building projects, encouraging the coordinated installation of fibre during construction. This would help make telecom deployment in Canada more cost-effective and, according to a report from the World Economic Forum in 2022, can cut costs by up to 33 per cent. The government also intends to consult later this year on a more “streamlined” tower-siting process aimed at reducing the regulatory burden associated with deploying telecom infrastructure across the country. In addition to infrastructure deployment, the government committed to ensuring industry access to quality spectrum, noting it will release additional spectrum and consult on a “modernised Spectrum Licence Transfer Framework in late 2025-26.” The budget also puts a heavy emphasis on improving competition and affordability in the telecom sector, arguing that “Canada's telecom sector has experienced a lack of competition, which has led to higher cellphone bills compared to other countries.” It confirmed that the government will work with the CRTC to implement the consumer protection measures it added to the Telecommunications Act last year. The Wire Report reached out to the Canadian Telecommunications Association for comment on the government’s telecom proposals. The organization did not respond by the time of publication. On the security front, the budget commits $10.9 billion over the next five years towards digital infrastructure upgrades for the Department of National Defence, Canadian Armed Forces (CAF), and Communications Security Establishment, “including those needed for modern warfare, such as cyberdefence.” Those funds will be part of an $81.8 billion investment the government plans on spending “to rebuild, rearm, and reinvest in the . This summer, Canada joined the new NATO Defence Investment Pledge of five per cent of GDP invested in defence by 2035. Budget 2025 explains that while 3.5 per cent of GDP will go towards core military needs, 1.5 per cent will be dedicated to security-related investments made by all levels of government, “such as telecommunications and emergency preparedness systems which serve national defence and national security purposes.” “The government expects that currently planned spending by federal, provincial, territorial, and municipal governments will meet this 1.5 per cent commitment,” it added. Additionally, the feds say they plan to develop a whole-of-government National Anti-Fraud Strategy that aims to bring together financial institutions, technology, and telecom companies to address complex fraud schemes. The budget also includes $55.4 million over four years, starting in 2026-27, for Public Safety Canada to support a new National Public Alerting System model, “ensuring Canadians continue to receive Amber Alerts and warnings of imminent natural disasters, extreme weather events and security threats….” Investments in AI and digital sovereignty Central to the budget’s drive toward “Building Canada Strong” is a major commitment to AI development. Budget 2025 proposes $925.6 million over five years, starting in 2025-26, dedicated to establishing “large-scale sovereign public AI infrastructure that will boost AI compute availability.” The government says the investment, which includes the development of a “Sovereign Canadian Cloud,” is meant to ensure Canada “has the capacity needed to be globally competitive in a secure and sovereign environment.” Of that amount, $800 million comes from leftover funds previously announced in last year’s budget. Minister of AI and Digital Innovation Evan Solomon will “engage with industry to identify new promising Al infrastructure projects,” and the Canada Infrastructure Bank will be allowed to invest in AI infrastructure projects, the budget adds. The document proposes creating a new “Office of Digital Transformation” to lead the adoption of AI in the public service and improve government efficiency, an effort that is to be complemented by the procurement of a “made-in-Canada AI tool that can be deployed across the federal government.” “By supporting innovative research to strengthen public services, this work will protect our digital sovereignty, keep government data and information safe in Canada, and create opportunities for the Canadian technology sector,” the budget reads. These measures are reminiscent of concerns the government raised last week in a white paper on digital sovereignty. “Most countries, including Canada and the United States, have laws that allow their authorities to request access to information held by organizations within their borders,” it stated. Service providers that support the government’s operations and have operations in other countries “must follow the laws of each jurisdiction,” which can create competing obligations. “Using a Canadian supplier or storing data in Canada does not guarantee data will be outside the jurisdiction of foreign courts,” the government wrote, warning that it can only maintain full legal control of its data if it delivers digital services itself or works with providers that operate solely under Canadian jurisdiction. According to the budget, some federal departments have already found ways that they can use AI to cut costs and improve their services. Shared Services Canada says it will apply AI in its internal operations and automate common IT support requests, which it hopes will reduce call volumes and costs. The Department of Justice will integrate AI and automation to “streamline routine tasks, enhance decision-making and free employees to focus on higher-value strategic work.” Transport Canada will use AI to optimize “back-office activities” and repetitive tasks, and will focus more on self-service and “technology-enabled solutions.” AI adoption, along with other moves to optimize the government’s productivity, are expected to begin saving Canada $1.25 billion in 2027-28, according to the budget, with savings totalling $7.75 billion between now and 2030. Support for cultural sectors, public broadcaster CBC/Radio-Canada is set to receive $150 million in 2025-26 to “strengthen its mandate to serve the public and to better reflect the needs of Canadians.” This money was promised by Carney on the campaign trail earlier this year. The government added that it plans to explore modernizing the CBC’s mandate to strengthen its independence, and that it is exploring its participation in Eurovision. For the media sector, the budget earmarks $402 million in funding over three years, beginning in 2026-27. This allocation includes $150 million for Telefilm Canada, $127.5 million for the Canada Media Fund, $48 million for the Canada Music Fund, $38.4 million for the Special Measures for Journalism component of the Canada Periodical Fund, $26.1 million for the National Film Board, $6 million for the Canada Council for the Arts, and $6 million to purchase Canadian content for the international French-language platform TV5MONDEPlus. The Canadian Media Producers Association (CMPA) applauded the government and Minister of Canadian Identity and Culture Steven Guilbeault’s support of the sector in a news release. “Today’s budget is a win for Canadian media producers, for Canada’s cultural sovereignty and for all Canadians,” said CEO Reynolds Mastin in a statement. “Against a backdrop of unprecedented trade uncertainty, the investments announced in the federal budget will bring much-needed stability for the Canadian media production sector.” “The investments announced today will, without a doubt, lead to more great Canadian stories on screen tomorrow,” added Mastin. He highlighted the updated investment in the CBC and its implications for children’s programming in Canada. “With today’s budget and the CBC’s prioritization of children’s content in its recent strategic plan, Canadian parents can rest assured that their kids will be able to see themselves reflected in Canadian stories on screens of all sizes for years to come,” said Mastin. Legislatively, the government proposes amending the Broadcasting Act and Copyright Act. The Broadcasting Act would be amended to “restore the right to privacy of individuals.” That provision was originally in the Online Streaming Act, but it was removed after the government said an amendment from a different bill accidentally replaced it. The act currently has two clauses related to official languages and none on privacy. The Copyright Act is also to be amended to introduce an “Artist's Resale Right,” ensuring creators of original visual artwork receive a royalty upon eligible resale. phalentm@thewirereport.ca

Federal budget aims to boost affordability, productivity in Canadian telecom, AI, cultural sectors

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By Phalen Tynes-MacDonald
|November 5, 2025

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Federal budget aims to boost affordability, productivity in Canadian telecom, AI, cultural sectors

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