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Wireless sector’s contribution to Canadian economy reached $43 billion in 2010: Ovum

Canada's wireless industry generated $43 billion for the Canadian economy in 2010 according to U.K.-based Ovum Consulting. In a report released today by the Canadian Wireless Telecommunications Association (CWTA), Ovum quantifies the economic...


June 4, 2012  


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Canada’s wireless industry generated $43 billion for the Canadian economy in 2010 according to U.K.-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, who discussed the study in a keynote address at the Canadian Telecom Summit. “The industry remains committed to ensuring that Canadians are provided with the most advanced and reliable wireless networks available.”

According to Ovum, 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. 

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.