The telecommunications industry contributed $74.5 billion in GDP to the Canadian economy in 2019, according to a new report from Accenture.
The report was commissioned by the Canadian Wireless Telecommunications Association (CWTA), which represents companies that provide wireless products and services before all levels of government in Canada.
This GDP contribution is composed of $23.5 billion in direct impact from the value chain of service providers and $51 billion in direct impact due to other industries increasing their sales and output by adding incremental wireless and wireline connections.
“This report shows us that the telecommunications industry continues to be a major driver for
the Canadian economy and is becoming even more important to Canadians as a result of the
impacts of the COVID-19 pandemic,” said CWTA CEO Robert Ghiz in a news release.
“Connectivity has become crucial for businesses, consumers and governments across Canada.
We know that the contribution and investments of facilities-based service providers will further
boost the Canadian economy, create well-paying jobs and improve the quality of life for
Canadians.”
Further, the report outlines that the telecommunications industry’s contribution represents 3.7 percent of Canada’s overall GDP in 2019.
It reveals that the telecommunications industry also supported 638,000 jobs in 2019. The report states that every telecommunications job results in 2.3 jobs supported in the Canadian economy and that every $1 million in telecommunications sales results in 4.2 new jobs.
“Looking ahead over the next five years, it is estimated that the telecommunications
industry value chain alone will contribute $199-$235 billion in direct, indirect, and induced
GDP to the Canadian economy while sustaining 300,000 to 350,000 jobs annually,” the report outlines.
The report states that the pandemic has exposed the need for continued investments from both the private and public sectors into telecommunications infrastructure and services.
“These continued investments will bridge the urban-rural divide for connectivity, sustain new ways of working and living, support solutions in education for our students, and unlock massive opportunities for all industries to leverage advances in telecommunications services to meet the evolving short- and long-term consumer and business demands,” the report states.
Accenture notes that the economic model used in the study captured contributions from two categories: the value chain for communications service providers and cross-industry increases in sales.
Image credit: CWTA
Source: CWTA
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