The telecommunications sector directly contributes nearly $81 billion to the Canadian economy and supports nearly 782,000 jobs across industries, a new report shows.

A PwC report found that Canadian telecommunications providers have lowered prices for consumers by investing more in their networks than their international peers. of Canada Labor productivity.

Toronto, June 17, 2024 /CNW/ – of Canada The telecommunications sector strengthens the Canadian economy and helps fight inflation while laying the foundation for future economic growth and productivity gains, says a new report.

In a report commissioned by the Canadian Telecommunications Association titled Driving of Canada Productivity: Impact of telecom sector and its role in improving productivityPricewaterhouseCoopers (PwC) says the telecommunications sector continues to play an important role in the Canadian economy. $80.8 billion of Canadian GDP and supports nearly 782,000 jobs across industries by 2023.

The report found that investment in the telecom sector has $11.4 billion Continued expansion, improvement and strengthening of capital investments in 2023 of Canada World-class wireless and broadband networks. That’s an average 42.6% more reinvestment per subscriber than service provider peers in the US. Japan, Australia And Europe.

Notably, the report says these significant investments were made despite a steady decline in Canadian telecommunications prices, with cellular and Internet access service prices falling 26.2% and 15.5%, respectively. March 2023 to do March 2024.

In addition to the current economic contributions of the telecom sector, PwC estimates that the sector could add more $112 billion To Canadian GDP by 2035 and enabling digital transformation to help boost Canadian productivity again of Canada economy. While productivity declines have led to a relative decline in Canadian living standards and threaten to undermine the country’s ability to compete on the global economic stage, telecommunications industry investments that stimulate growth in other industries are increasingly important to the country’s broader economic progress.

The story continues

„Once upon a time of Canada „While productivity faces significant challenges, the telecom sector lays the essential foundation for a more prosperous economic future,” he said. John Simcoe, National Media & Telecom Lead at PwC Canada. „By continuing to invest in our networks, amid falling prices and rising costs, Canadian telecommunications providers are not only improving connectivity for millions of Canadians, but also setting the stage for significant productivity gains and economic growth. Continued investment in digital infrastructure is essential. Canada to realize its productive potential and sustain economic growth.”

„of Canada The telecom sector is integral to our nation’s economic growth and digital future. „By continuing to develop our networks and expand services to underserved areas, our industry fosters greater economic opportunity, inclusion and productivity,” he said. Robert Kiss, President and CEO of the Canadian Telecommunications Association. „To sustain and enhance these contributions and ensure we create a strong digital future for all Canadians, it is essential that we have a stable regulatory environment that encourages continued investment.”

Key findings of the report:

Economic impact

• The contribution directed by the telecom sector is appreciated $80.8 billion to do of Canada GDP in 2023 (more than 5%) $76.7 billion in 2022) and supported approximately 782,000 jobs across Canadian industries (up 8% from 724,000 in 2022)*.

• Improved connectivity including 5G has the potential to contribute more $112 billion to do of Canada Overall GDP by 2035 by empowering individuals and businesses to connect with the digital economy.

Investment

• The Canadian telecommunications industry invested $11.4 billion in capital expenditures in 2023 to expand and improve connectivity for Canadian homes and businesses.

• Canadian telecommunications providers reinvested 17.9% of service revenue in 2023, on average, higher than average reinvestment rates in the United States (14.6%). Australia (11.7%) and Europe (13.6%).

• Canadian telecommunications providers invested 42.6% more per subscriber on average than their counterparts in the United States. Japan, Australia And Europe.

Falling prices

• The cost of cellular services decreased by 26.2% March 2023 to do March 2024 In the same period, the cost of internet access services decreased by 15.5%.

• The cost of cellular services has come down by 41% Canada Between 2020 and 2024, prices in the US and UK increased by 2% and 14% respectively over the same period.

• Even as costs drop, Canadians use more data. Average monthly mobile subscriber data traffic increased by 25% from 2022 to 2023, while average monthly broadband subscriber data usage doubled from 2019.

Expanding coverage

• By 2023, 99.7% of Canadians will have access to a mobile wireless network where they work and live, and 93.5% of Canadian homes and businesses will have broadband Internet access.

• Service providers are committed to bridging the digital divide and have made good progress in bringing improved connectivity to First Nations reserves, notably increasing the availability of 50/10 Mbps Internet access to First Nations communities by 85% since 2016.

Sector challenges and opportunities

• The report highlights the current challenges facing the telecom industry, including price cuts, high borrowing costs, increased competition from multinational over-the-top (OTT) players, rising network costs and climate-related risks.

• Despite the headwinds, the sector remains an important driver of Canada Prosperity through its contributions to GDP, job creation and investments in digital infrastructure.

• Continuous expansion and expansion of advanced telecommunication networks is essential to sustain the growth of the digital economy and increase national productivity. The report points to the bank of Canada Findings show a positive correlation between investment in digital infrastructure, ICT adoption and labor productivity growth.

„These findings underscore the important role our field plays in driving of Canada digital economy,” said the Telecommunications Union’s Ghiz. „As we continue to invest and improve our networks, we are not only improving connectivity but improving economic opportunity for all Canadians.”

Driving of Canada Productivity: Impact of telecom sector and its role in improving productivity can be found at https://canadatelecoms.ca/wp-content/uploads/2024/06/Driving-Canadas-Productivity.pdf

*2022 figures based on previous Canadian Telecommunications Association-commissioned report

About the Canadian Telecommunications Association

The Canadian Telecommunications Association is dedicated to building a better future for Canadians through connectivity. Our members include service providers, equipment manufacturers and other companies in the telecommunications ecosystem, investing in, developing, maintaining and operating of Canada World class telecommunication networks. Through our advocacy initiatives, research and events, we work to promote the importance of telecommunications of Canada Advocates for policies that promote economic growth and social development and investment, innovation and positive outcomes for consumers. We also facilitate business ventures like Mobile Giving Foundation Canada, Canadian common short codes, Be And Wireless accessibility.ca

SOURCE Canadian Telecommunications Association

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2024/17/c4096.html