Wireless Sector’s Contribution to the Canadian Economy Reaches $43 Billion

New report provides an economic assessment of the benefits of the wireless telecommunications industry  

OTTAWA – June 4, 2012 – Canada’s wireless industry generated $43 billion for the Canadian economy in 2010 according to UK-based Ovum Consulting. In a report released today by the Canadian Wireless Telecommunications Association (CWTA), Ovum quantifies the economic impact of Canada’s wireless sector in terms of gross domestic product (GDP), investment and employment.

Ovum determined the wireless communications services industry directly contributed $18 billion to Canada’s GDP and provided an additional $15.66 billion of economic flow through to contributing suppliers in the supply chain. The sector also generated a consumer surplus – the additional benefit or satisfaction that consumers receive from wireless services, above and beyond what they pay for the services – of $9.31 billion.

“Canada’s wireless industry has once again demonstrated its critical importance to our country’s economy and prosperity,” said CWTA President & CEO Bernard Lord. “The industry remains committed to ensuring that Canadians are provided with the most advanced and reliable wireless networks available.”

The report also examines the extraordinary investments made by the industry. In 2010, the industry deployed $2.5 billion in capital expenditures, which represented more than 14% of aggregate Canadian mobile operators’ revenues. This level of capital intensity was greater than the average for North America, which was 13.3% in 2010.

Ovum also determined the wireless industry supported more than 260,000 jobs in 2010. The wireless sector continues to offer high value employment, with an average salary level of more than $64,000, compared to the Canadian average salary of just over $44,000.

The Benefit to the Canadian Economy from the Wireless Telecommunications Industries: An Economic Impact Assessment” is based on empirical data from the year 2010. Data was provided by a number of CWTA members, and obtained from publicly available sources including the CRTC, Statistics Canada, Industry Canada and annual reports of wireless operators, terminal suppliers and network equipment manufacturers. Ovum forecasts for revenues and services in the wireless sector have also been used in the modeling. A complete copy of the 45-page report is available on the CWTA Web site.

Bernard Lord will be discussing further results of the study in a keynote address at 12.30pm today at the Canadian Telecom Summit in Toronto.

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Canadian Wireless Telecommunications Association (CWTA)
CWTA is the authority on wireless issues, developments and trends in Canada. It represents cellular, PCS, messaging, mobile radio, fixed wireless and mobile satellite carriers as well as companies that develop and produce products and services for the industry.

Media Contact:
Marc Choma, CWTA
613-233-4888 ext. 207
mchoma@cwta.ca