New report warns that deteriorating telecom investment environment poses risks to Canada's economy, productivity and digital resilience Français
PwC report highlights a growing disconnect between the strategic importance of telecommunications infrastructure and the conditions required to sustain investment in it
OTTAWA, ON, May 20, 2026 /CNW/ - Canada's telecommunications delivers strong value for consumers while serving as foundational infrastructure for the country's economy, productivity, security and resilience, but a deteriorating investment environment poses a risk to sustaining these outcomes, PricewaterhouseCoopers (PwC) says in a new report commissioned by the Canadian Telecommunications Association.
The report, entitled Telecommunications Investment: Sustaining the Infrastructure Behind Canada's Economy, finds that Canada's telecommunications sector was a major contributor to Canada's economy in 2025, contributing approximately $86 billion to Canada's GDP--roughly 4% of total economic output--and supporting approximately 611,000 jobs across industries. Consumers also continue to benefit from lower prices and improved services. Between January 2020 and February 2026, wireless CPI declined by 45.5% and wireline CPI declined by 3.1%, while Canadians gained access to faster speeds, broader coverage and increased data usage across all household income levels.
The new report also recognizes telecommunications networks as the backbone of Canada's critical infrastructure, underpinning financial systems, supply chains, emergency response, digital sovereignty, and public safety, while also supporting advanced technologies such as AI, cloud computing, IoT, and real-time data processing.
At the same time, the report warns that a deteriorating investment environment, and rising government and regulatory costs threaten Canada's ability to sustain these positive outcomes and keep pace with the growing demands for--and strategic importance of--advanced telecommunications infrastructure.
Since 2021, Canadian telecommunications operators have invested approximately $59 billion in network infrastructure to expand broadband access, increase network capacity, improve reliability and support growing digital adoption across the economy. However, annual telecommunications capital expenditures declined from $12.7 billion in 2023 to $10.9 billion in 2025, while government and regulatory costs reached approximately $2.5 billion in 2024, equivalent to 58% of major operators' combined net income.
"Canada's telecommunications networks are not just consumer services: they are critical infrastructure that underpin our economy, public safety, national resilience and digital sovereignty," said Robert Ghiz, President and CEO of the Canadian Telecommunications Association. "This report makes clear that the outcomes we want for Canadians--affordability, connectivity, innovation and economic growth--require sustained private sector investment in network infrastructure. However, as demand for AI, cloud computing and next-generation digital services accelerates, a deteriorating investment environment threatens the resilience and advancement of critical telecom infrastructure that Canadians and the broader economy depend on."
"Telecommunications infrastructure has become foundational to Canada's economic performance and competitiveness," said Bali Minhas, National Technology, Media and Telecommunications & Consumer Markets Leader (TMTCM) at PwC Canada. "The sector continues to deliver strong value for consumers and businesses, including significant affordability gains and widespread digital enablement across the economy. However, to maintain this momentum is it crucial that we maintain the conditions necessary to support continued private sector investment in network expansion, modernization and resilience."
Key findings from the report include:
- Telecommunications networks underpin critical infrastructure, emergency response systems, supply chains, digital commerce and public safety, while supporting the adoption of AI, cloud computing and IoT technologies across the economy.
- Telecommunications infrastructure is a key enabler of productivity growth and digital transformation across Canadian businesses and industries.
- In 2025, the telecommunications sector contributed approximately $86 billion to Canada's GDP and supported approximately 611,000 jobs across industries.
- Between January 2020 and February 2026, wireless CPI declined by 45.5% and wireline CPI declined by 3.1%, while Canadians received faster speeds, broader coverage and improved service quality.
- The report warns that Canada's telecommunications investment environment is deteriorating: despite approximately $59 billion in network investment since 2021, annual capital expenditures fell from $12.7 billion in 2023 to $10.9 billion in 2025, while government and regulatory costs rose to approximately $2.5 billion in 2024--equal to 58% of major operators' combined net income.
Telecommunications Investment: Sustaining the Infrastructure Behind Canada's Economy can be found at: https://canadatelecoms.ca/wp-content/uploads/2026/05/Telecommunications-investment-Sustaining-the-infrastructure-behind-Canadas-economy.pdf
About the Canadian Telecommunications Association
The Canadian Telecommunications Association is dedicated to building a better future for Canadians through connectivity. Our members include service providers, equipment manufacturers, and other organizations in the telecommunications ecosystem, that invest in, build, maintain and operate Canada's world-class telecommunications networks. Through our advocacy initiatives, research, and events, we work to promote the importance of telecommunications to Canada's economic growth and social development and advocate for policies that foster investment, innovation, and positive outcomes for consumers. We also facilitate industry initiatives, such as the Mobile Giving Foundation Canada, Canadian Common Short Codes, STAC and wirelessaccessibility.ca.
SOURCE Canadian Telecommunications Association
Media Inquiries: Canadian Telecommunications Association, Nick Kyonka, [email protected]
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