OTTAWA – Canada’s telecommunications sector contributed nearly $75 billion to the country’s GDP in 2021 and supported over 650,000 Canadian jobs, according to a report from PricewaterhouseCoopers (PwC), commissioned by the Canadian Wireless Telecommunications Association (CTWA), which represents wireless sector companies including Bell, Rogers, Videotron and Xplornet, and released yesterday.
This includes a direct contribution to the GDP of $24.7 billion and support of nearly 130,000 jobs. “This direct impact resulted in increased business-to-business activity, creating indirect contributions of $12.1B to GDP and supporting an additional 119,000 jobs,” the report says, adding, “Both the direct and indirect effects created an increase in consumer spending and household income, which created induced contributions of $9.6B to GDP and supported another 77,000 jobs.”
“Canada’s telecommunications sector has played a crucial role in maintaining economic and social activity since the beginning of the pandemic, and by investing in critical network infrastructure at levels that exceed that of international peers, the telecom sector will be a key contributor to Canada’s post-COVID economic recovery,” said Robert Ghiz, president and CEO of CWTA, in a press release announcing the report’s findings.
“These investments are vital to maintaining Canada’s status as a world leader in telecommunications and meeting Canada’s innovation and economic growth objectives.”
The report also shows the telecom sector invested $12.3 billion in 2021 in capital expenditure. This represents an average of around 19% of revenue for the year – the average across peer telecom providers in the G7 and Australia was 14%.
“On a per subscriber basis, in 2021 Canada’s telecom sector invested $168 in capital expenditures per subscriber compared to a G7 and Australia average of $87 per subscriber,” the report explains.
Additionally, $8.9 billion was invested in new spectrum licences in 2021.
The higher percentage of capital expenditures in Canada is partly because of the country’s dispersed geography as well as weather and landscape. But the report also notes the investments have helped “increase coverage, quality and affordability of telecommunication services in Canada, helping to make Canada a global connectivity leader.” For example, “Canada has one of the highest quality wireless networks in the world, ranking 1st among G7 countries and Australia for average download speeds in 2021,” the report says.
The report also indicates:
- The telecom sector made around $250 million in annual charitable donations last year.
- Expansion of the digital economy has “the potential to contribute an incremental $97B to Canada’s GDP by 2035 and support the delivery of a range of environmental and social benefits.”
- Bell, Telus and Rogers are among the country’s largest private sector R&D spenders, having each spent around $500 million in 2019 and 2020.
Moving forward, the telecom sector must maintain investment and overcome challenges including the increased cost of 5G compared to other generations of connectivity, the country’s geography, and market imbalances as “Value in the digital economy accrues to companies that use software, hardware and services to provide 5G-enabled solutions, rather than those that provide connectivity,” according to the report.
“The telecom sector plays a significant role in Canada’s economy and the connectivity provided by the sector is the foundation of Canada’s digital economy,” said John Simcoe, national media and telecom lead at PwC Canada, in the press release.
“Ongoing investment by network operators in network infrastructure, including 5G and spectrum, is critical to Canada’s future prosperity, the advancement of Canada’s innovation ecosystem, and the deployment of technology that is required to meet Canada’s climate action and sustainability objectives.”
For the full report, please click here.
