OTTAWA — The Canadian telecommunications industry directly contributed $74.5 billion in GDP to Canada’s economy in 2019 and supported 638,000 jobs, according to a new Accenture report commissioned by the Canadian Wireless Telecommunications Association (CWTA).
The report looks at the economic impact of facilities-based network operators supplying wireless and wireline connectivity services, and found the industry’s GDP contribution was comprised of $23.5 billion in direct impact from the value chain of service providers and $51 billion in direct impact due to other industries which increased their sales and output by adding incremental wireless and wireline connection.
Released today, this year’s report also highlights the important role Canada’s telecom industry will play in the Covid-19 economic recovery.
“This report shows us that the telecommunications industry continues to be a major driver for the Canadian economy and is becoming even more important to Canadians as a result of the impacts of the Covid-19 pandemic,” said Robert Ghiz, president and CEO of CWTA, in a press release. “Connectivity has become crucial for businesses, consumers and governments across Canada. We know that the contribution and investments of facilities-based service providers will further boost the Canadian economy, create well-paying jobs and improve the quality of life for Canadians.
“To expedite these telecom-led benefits, however, we need a stable regulatory environment that encourages private investment in expanding network infrastructure and the next generation telecommunications technologies, like 5G,” Ghiz added.
Other key findings of the report include the following:
- The telecom industry’s contribution to the Canadian economy represents 3.7% of the country’s overall annual GDP in 2019.
- Every telecom job results in 2.3 jobs supported in the Canadian economy, and every $1 million in telecom sales results in 4.2 new jobs supported in the economy.
- Over the next five years, it is estimated the telecom industry value chain alone will contribute between $199 billion and $235 billion in direct, indirect and induced GDP to the Canadian economy, while sustaining 300,000 to 350,000 jobs annually.
- In 2019, capital investments in wireless and wireline connectivity by the private sector totalled more than $10 billion, which is part of the more than $50 billion in wireless capital expenditure and $20 billion in spectrum licences invested by facilities-based service providers since 1987 and more than $150 billion in wireline capital expenditure invested since 1996.
“Resilient connectivity and stable networks have become a key priority for businesses, consumers, and the public sector. As the infrastructure to scale 5G networks is deployed, various new business models and use cases across all industries will be unlocked, which can drive significant economic activity across Canada,” said Tejas Rao, managing director and global 5G offering lead at Accenture. “Investments in next-gen technologies will increase productivity and exponentially grow the capabilities of existing products and services across many industries. Both the public and private sector have an ongoing role to play in making this a reality.”
A copy of the report, Investing in Canada’s Digital Infrastructure: The Economic Impact of Wireless/Wireline Broadband and the Post-Covid Recovery, can be found here.
