The study also shows that despite the economic downturn in 2020, the telecommunications industry invested more than $11 billion in innovation and infrastructure expansion and introduced measures to help Canadians stay connected during the COVID-19 pandemic.
OTTAWA (ON), November 15, 2021 /CNW/ – Despite the COVID-19 pandemic, from Canada the telecommunications industry performed in line with the overall economy and maintained its share of overall Canadian GDP output estimated last year. In a report commissioned by the Canadian Wireless Telecommunications Association (CWTA), Accenture estimates that despite a 5.4% contraction in the Canadian economy in 2020, the telecommunications industry contributed up to $70.7 billion to GDP while supporting nearly 600,000 jobs.
The COVID-19 pandemic has highlighted the importance of connectivity for Canadian society, businesses and the economy. With sustained and accelerating growth in digital traffic, from Canada Facilities-based operators continued to invest in building additional capacity and continuing to modernize and expand critical telecommunications infrastructure and services, paving the way for a resilient and sustainable economic recovery from the pandemic.
Throughout the pandemic, four key trends have emerged, further underscoring the importance of telecommunications services:
- Pivot to the digital economy,
- a decline in city life,
- the advent of unconventional ways of socializing,
- and the rise of remote work.
In addition to its macroeconomic contributions and the growing importance of connectivity for Canadians, the telecommunications industry has put in place a multitude of measures to help Canadians stay connected following the COVID-19 outbreak and has made direct contributions to charities, nonprofits, and disadvantaged communities.
“The telecommunications industry has played a key role in keeping Canadians connected since the outbreak of COVID-19 and it is clear that from Canada high-quality digital infrastructure has been crucial in supporting economic and social activity across the country,” said Robert Ghiz, President and CEO of the Canadian Wireless Telecommunications Association. “Despite the economic headwinds of 2020, from Canada telecom operators continued to invest billions of dollars to expand and upgrade from Canada telecommunications infrastructure and provided additional support to Canadians struggling with the challenges of COVID-19. »
Main conclusions of the report:
- The contribution to GDP and jobs supported by the telecommunications industry and increased connectivity between other industries has been estimated at $70.7 billion and up to 596,000 jobs, respectively, in 2020
- More generally, the industry influenced up to 3.14% of overall Canadian GDP in 2020
- The increase in the number of new connections for telecommunications services has generated an increase in sales in other industries in Canada estimated at $47.9 billion contributions to GDP (including, for example, $6.4 billion additional production in health care)
- This economic contribution was boosted by the telecommunications industry’s sustained and significant capital investments in 2020, with more than $11 billion invested in wireless and wired connectivity
- In 2020, service providers invested approximately $12 billion salaries and employee benefits, providing more than 120,000 high-quality jobs to Canadians who, in turn, contribute to the Canadian economy by exercising their purchasing power and paying taxes
- Supported Service Providers Canada through an estimate $6.8 billion in taxes, which help fund government services such as social assistance, health care, infrastructure and public safety
- Service providers contributed more than $245 million charities and nonprofits
“From healthcare professionals providing virtual patient care to parents across the country who safely support their children through virtual learning while balancing work from home, telecommunications has enabled Canadians to stay connected as well as to be economically and socially self-sufficient during COVID-19,” said Tejas Rao, managing director of Accenture Cloud First’s wireless services practice. “The pandemic has highlighted how essential connectivity is for Canadians, businesses and the economy.”
These trends have all contributed to the telecommunications industry maintaining its annual contribution to the Canadian economy despite a general economic downturn. According to the report, as the world reopens and the Canadian economy returns to growth, the telecommunications industry will further improve its economic contributions, help reduce from Canada carbon footprint, and help fuel from Canada digital evolution.
A copy of the report, titled “Connecting Canadians During COVID-19: The Impact of the Wireless and Wireline Industry in 2020 and Beyond,” can be viewed here.
ACTS is the authority on wireless issues, developments and trends in Canada. He represents companies that provide services and products in the wireless industry. CASW also administers a number of initiatives on behalf of its members, including corporate social responsibility programs and the National Common Short Code Program.
SOURCE Canadian Wireless Telecommunications Association
For further information: Media inquiries: CWTA, Guy Gallant, [email protected]