Telecom sector surpasses 2020 investments and GDP, workforce, contributions: Report

Canada’s telecommunications sector contributed $4.3 billion more in direct GDP compared to 2020 and supported an extra 50,000 jobs, according to a new report. Tuesday, the Canadian Wireless Telecommunications Association (CWTA) released a report, prepared by PwC Canada, on the telecommunications sector’s contributions to the Canadian economy in 2021. The CWTA-commissioned report revealed that in 2021, the telecommunications industry’s contributions to the Canadian economy almost reached $75 billion in direct GDP and supported more than 650,000 jobs. Its 2020 report found the sector contributed up to $70.7 billion to the Canadian economy and supported almost 600,000 jobs. The report further broke down the figure, finding the sector spent $24.7 billion in direct impact from the telecom sector’s value chain and approximately $50.2 billion in direct impact “due to the increase of sales and output of other industries through the addition of incremental wireless and wireline connections.” The telecom sector also invested $12.3 billion to expand and build on infrastructure, representing an average of approximately 19 per cent of its 2021 revenue (excluding the spectrum auction which generated $8.9 billion for the federal government). In 2020 it invested more than $11 billion in infrastructure innovation and expansion. The report found Canada surpassed other G7 countries and Australia in comparison. On a per subscriber basis, in 2021 Canada’s telecom sector invested $168 in capital expenditures per subscriber compared to an $87 per subscriber average for the other countries. Average consumer prices of mobile plans have also decreased despite economic inflation. Canadian internet access plan prices trended below inflation, the report states. There was a 1.7 per cent year-over-year decrease in price for internet access plans from June 2021 to June 2022, while headline inflation increased 8.1 per cent during the same period “as the price of the majority of other consumer items increased,” according to the report. “These price trends demonstrate how facilities- based competition is delivering increasing value to consumers, while more Canadians rely on connectivity for essential services such as staying in touch with family and friends, consuming content, or working remotely,” the report states. “In addition to declining prices, the Canadian telecom sector also provided a range of low-cost programs that helped low-income families and seniors access affordable high-speed internet.”

Telecom sector surpasses 2020 investments and GDP, workforce, contributions: Report

Brief | October 25, 2022

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Telecom sector surpasses 2020 investments and GDP, workforce, contributions: Report

Brief | October 25, 2022

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

CRTC announces changes to Broadband Fund

CRTC launches consult on providing more info to consumers shopping for internet services

Champagne announces launch of Canadian AI Safety Institute

Satellite is ‘here to stay’ as connectivity solution, industry players say

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us