Canadian telecommunications sector convenes for annual assembly, with a study showcasing industry-wide investment growth
Toronto Report Highlights Importance of Telecom Infrastructure Investment for Canada's Economic Recovery
Toronto, Canada - Investing in telecommunications infrastructure stands as a pivotal factor in boosting Canada's economic growth post-pandemic, following the sector's significant contribution of $87.3 billion in direct GDP last year.
The report, released by PricewaterhouseCoopers and commissioned by the Canadian Telecommunications Association, estimates that the sector supported roughly 661,000 jobs across various industries in 2024. The findings were presented at the 23rd annual Canadian Telecom Summit held in Toronto this week.
Demand for advanced connectivity is on the rise, and in response, Canadian telecom companies spent approximately $282 per capita on network development in 2024. However, the report sheds light on the challenges telecom providers face in maintaining investment levels, including escalating costs, dwindling revenue growth, intense competition, and a complex regulatory environment.
The Canadian Telecommunications Association (CTA) President and CEO, Robert Ghiz, emphasized the need for all levels of government to be cognizant of the impact their regulations and policies have on the sector's ability to invest for the future and meet the country's economic needs.
Canadian telecom providers face considerable investment and revenue growth challenges due to the sector's capital-intensive nature. The highest capital intensity ratio, averaging 18%, is found in Canada compared to 14% in the U.S. and 10% in Australia. Additionally, slowed revenue growth (1.9% between 2023 and 2024) poses challenges in maintaining the necessary investment levels.
Competition also poses a significant hurdle, as the Canadian telecom market is markedly competitive. This competition arises from mobile virtual network operators (MVNOs) that make use of incumbent networks, which can lead to pricing pressure. Market forces are another challenge in providing coverage in remote areas, where investments may not be justified without government support.
The sector operates within a complex and high-cost regulatory environment. This complex landscape, as indicated by Canada's falling Ease of Doing Business Index ranking, presents challenges for investments. The importance of policies that balance support for investment capacity, competition, and affordability has grown increasingly vital to the sector's health and the Canadian economy as a whole.
This report by The Canadian Press was initially published on June 3, 2025.
The Canadian Telecommunications Association (CTA) President and CEO, Robert Ghiz, emphasized the importance ofgovernment acknowledging the impact their regulations and policies have on the sector's ability to invest for the future and meet the country's economic needs, including the need for investment in Toronto, Canada's telecommunications infrastructure for environmental sustainability and technological advancements.
Maintaining investment levels in energy-efficient technology and green initiatives within the telecommunications sector will be crucial for Canada's environmental improvement, as the report highlights the challenges faced by telecom providers to invest in such areas due to escalating costs, dwindling revenue growth, intense competition, and a complex regulatory environment.
