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June 3, 2025

Canada’s telecommunications sector is more than just cell towers and internet wiring; it is a powerful engine that drives our nation’s economy and digital future. A new report from PricewaterhouseCoopers (PwC), commissioned by the Canadian Telecommunications Association, reveals just how vital the telecom industry is—not only for keeping Canadians connected, but for driving national productivity, economic independence, and global competitiveness.

Titled Enabling Canada’s Economic Independence and Global Competitiveness Through Telecommunications, the report underscores the critical role that telecom plays as a “key enabler of the Canadian economy.” According to PwC, in 2024 alone, the sector contributed an estimated $87.3 billion to Canada’s GDP and supported over 660,000 jobs across industries. Importantly, $57.2 billion of this GDP contribution was generated outside the telecommunications sector through increased productivity and business enablement across industries.

Consumers are also seeing direct benefits. Between 2020 and 2024, cellular service prices dropped by over 50%, while internet prices also declined. At the same time, demand for connectivity increased, with mobile and fixed internet subscriptions growing at 5.0% and 2.0% compound annual growth rates, respectively.

As Canada faces growing geopolitical and economic pressures, the report argues that telecommunications infrastructure is a strategic asset. It’s not just about faster internet—it’s about safeguarding national sovereignty, supporting secure digital commerce, and ensuring that Canadian businesses can compete globally through the adoption of the latest digital innovations that will improve productivity.

But, as PwC explains, the telecom industry is under strain. Canada’s telecom companies face higher capital costs than their global peers, with a capital intensity ratio of 18%, compared to 14% in the U.S. and just 10% in Australia. Slowing revenue growth and a complex regulatory environment are making it harder to sustain the investments needed to keep pace with demand.

This matters because Canada is grappling with a long-standing productivity challenge, as labour productivity has grown just 1% over the past eight years. The telecom sector, by contrast, has seen 12.4% productivity growth since 2017, thanks to its role in enabling smarter, more efficient operations across the economy.

From powering smart trade corridors to enabling remote work and digital healthcare, telecom infrastructure is the backbone of a modern, resilient Canada. As the global economy becomes increasingly digital, the report makes one thing clear: investing in telecommunications is investing in Canada’s future.

To secure Canada’s economic future, policymakers must treat telecommunications as a national strategic priority. This means creating a regulatory environment that encourages long-term investment, identifying regulations that are no longer necessary or whose costs outweigh the benefits, and recognizing telecom as a foundational enabler of productivity and national sovereignty.

Read the Full Report: Enabling Canada’s Economic Independence and Global Competitiveness Through Telecommunications (PDF)