Sustained Investment in Telecommunications Infrastructure is Crucial to Building a Stronger and More Productive Canadian Economy, According to New PwC Report Français
New report analyzes the telecom sector's contribution to the Canadian economy, current industry challenges, and the importance of maintaining a healthy telecommunications sector for Canada's future global competitiveness, independence, and sovereignty.
TORONTO, June 3, 2025 /CNW/ - Sustained investment in telecommunications infrastructure is essential to increasing Canada's productivity, innovation and economic growth, says a new report that details how the telecommunications sector is a "key enabler of the Canadian economy."
In the report, commissioned by the Canadian Telecommunications Association and titled Enabling Canada's Economic Independence and Global Competitiveness Through Telecommunications, PricewaterhouseCoopers (PwC) highlights the telecommunications industry's far-reaching impact that enables "innovation and efficiency gains across the entire economy." The report underscores how the sector can serve as a strategic lever for safeguarding Canada's sovereignty, economic independence, and global competitiveness, and it encourages a regulatory environment that supports sustainable private sector investment in telecommunications infrastructure.
PwC estimates the Canadian telecommunications sector contributed $87.3B in direct GDP and supported 661,000 jobs across industries in 2024. Importantly for the overall economy, $57.2B of this direct GDP contribution is the result of the increase in telecommunications connections leading to increased productivity and business enablement across other industries.
These economic contributions were largely driven by telecom providers' significant capital investments to expand and enhance their networks. The report finds that Canadian providers invest in their networks at a higher rate than other global telecoms, spending approximately $282 per capita on network development in 2024, and that the capital intensity ratio for major Canadian telecommunications providers averaged 18% from 2020-2024, surpassing investment levels in the U.S. (14%), U.K. (17%) and Australia (10%).
Despite investing at these higher levels, the report notes Canadian telecom providers continue to effectively absorb the impacts of inflation for consumers by reducing the service plan prices. For example, from February 2020 to September 2024, the lowest average monthly price for 10GB mobile plans fell by $41—a 65.1% decrease in real terms adjusted for inflation—and the lowest average monthly price of 50GB mobile plans fell by $84—a 72.5% decrease in real terms adjusted for inflation. Over the same period, the lowest average monthly price for the 50/10 Mbps Internet plans fell by $22—a 38.6% decrease in real terms adjusted for inflation—while the price of Gigabit+ plans fell by $40—a 45.2% decrease in real terms adjusted for inflation.
In addition to analyzing the economic impact of the telecommunications sector, the report also shows how telecom infrastructure investments, combined with a skilled workforce, create a multiplier effect—accelerating innovation, boosting operational efficiency, and driving economic growth. It cites as examples the transformative impact of telecommunications on developing integrated and efficient trade corridors that are essential to getting Canadian goods across the country and to international markets, connecting rural communities, and modernizing traditional industries such as mining.
PwC also outlines the challenges telecom providers face in sustaining the investments needed to meet Canada's growing demand for advanced connectivity. Higher costs, declining revenue growth, intense competition, and an increasingly complex regulatory environment have created unprecedented investment pressures on telecom providers. The report looks at lessons that can be learned from Europe and United States and the role that telecom policies and regulations can play in mitigating some of these challenges.
"Canada's ability to increase productivity and build a stronger, more competitive and resilient economy depends on expanding and continuing to enhance its high-quality telecommunications infrastructure," said Sam O'Halloran, partner at PwC. "Policies that help ensure the sector's health and investment capacity is a strategic imperative for maintaining Canada's economic independence."
"The key to generating long-term growth and independence for the Canadian economy is investment in the tools and infrastructure that will make Canadian businesses more innovative, productive, and competitive," said Robert Ghiz, President and CEO of the Canadian Telecommunications Association. "A more productive Canada will raise our GDP, increase jobs and workers' wages, and help support important social programs. Our telecom networks are the foundation of this transformation, and it is crucial for all levels of government to consider the impact of their regulations and policies on the capacity of our sector's ability to make the investments required to meet the economy's needs for advanced telecommunications."
Key statistics included in the report:
In 2024, Canada's telecommunications sector contributed $87.3 billion in direct GDP and supported 661,000 jobs across the economy. This includes:
$30.1 billion in immediate direct GDP generated by the sector itself.
$57.2 billion in direct GDP outside the sector, enabled by productivity gains and business transformation across other industries.
Canadian telecommunications providers continued to invest heavily in critical infrastructure, spending $282 per capita on network development in 2024.
From 2020 to 2024, major Canadian telecoms maintained a capital intensity ratio of 18%, outpacing their counterparts in the U.S. (14%), U.K. (17%), and Australia (10%).
Canadian consumers continue to benefit from declining telecommunications prices:
Prices for cellular services fell by 50.4% between January 2020 to December 2024, the most significant decline of any major Consumer Price Index category.
10GB plan: fell $41 (a 65.1% decrease in real terms adjusted for inflation).
50GB plan: down $84 (a 72.5% decrease in real terms adjusted for inflation).
Prices for Internet access services fell 6.4% during the same period.
50/10 Mbps plan: fell $22 (a 38.6% decrease in real terms adjusted for inflation).
Gigabit+ plan: down $40 (a 45.2% decrease in real terms adjusted for inflation).
Enabling Canada's Economic Independence and Global Competitiveness Through Telecommunications can be accessed at https://canadatelecoms.ca/wp-content/uploads/2025/06/Enabling-Canadas-Economic-Independence-and-Global-Competitiveness-Through-Telecommunications.pdf
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 organizations in the telecommunications ecosystem, that invest in, build, maintain and operate Canada's world-class telecommunications networks. Through our advocacy initiatives, research, and events, we work to promote the importance of telecommunications to Canada's economic growth and social development and advocate for policies that foster investment, innovation, and positive outcomes for consumers. We also facilitate industry initiatives, such as the Mobile Giving Foundation Canada, Canadian Common Short Codes, STAC and wirelessaccessibility.ca.
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