PwC report touts importance of Canadian telecom sector to overall economy
The telecom sector is a key enabler of the Canadian economy, and could help address the country’s daunting productivity problem, according to a recent PwC Canada report.
The Big Four firm’s report – “Enabling Canada’s economic independence and global competitiveness through telecommunications” – says the telecommunications sector contributed $87.3 billion in direct GDP in 2024 and supported 661,000 jobs across industries.
Approximately $30.1 billion was direct GDP generated by jobs, wages, and outputs directly tied to businesses in the telecom sector, while $57.2 billion was direct GDP outside the sector from increased productivity and business enablement. PwC says this figure underscores the importance of telecom in building a productive and independent Canada.
Businesses and consumers are turning to telecom infrastructure to support economically important areas including remote work, digital commerce, and healthcare delivery. And PwC says Canadian telecoms are providing faster speeds and better value.
From January 2020 to December 2024, cellular services and wireline CPI declined by 50.4% and 6.4%, respectively.
However, the industry is facing headwinds that may prevent the investment levels required to meet the Canadian economy’s demand for advanced infrastructure.
Canadian telecom is more capital intensive than many other jurisdictions because of factors such as low population density, high population dispersion, and challenging terrain and weather. The capital intensity ratio for Canada between 2020 and 2024 was 18%, compared to 17% for the UK, 14% for the US, and 10% for Australia.
Canadian telecoms have also seen revenue growth slow to 1.9% between 2023 and 2024.
Navigating these challenges is important, PwC says, because telecom could help tackle Canada’s productivity challenge – with labour productivity growth limited to just 1.4% in the last eight years.
Telecom infrastructure can enable productivity growth across the entire economy by powering advanced technologies (including AI), but also by creating high-value jobs and promoting inclusive labour participation.
Enhanced infrastructure and skilled labour can create a multiplier effect on productivity, driving innovation, efficiency, and growth across sectors. For example, PwC highlights how telecom can enhance trade corridors by enabling real-time integration of ports, logistics hubs, and transportation networks to drive efficiency gains.
“As the global economy becomes increasingly digital, ensuring the health and investment capacity of the telecommunications sector becomes a strategic imperative for maintaining Canada’s economic independence,” the PwC report concludes.
