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Telecommunications Service in Canada: An Industry Overview
Section 1: Contribution to Overall Economy
1.1 Gross Domestic Product (Value Added )
Figure 1-1 shows that the communications service industries produced $26.8 billion
of value added in 2004, a 2.4 percent increase from the previous year. Communications
services' share of total economy GDP had steadily increased prior to 2001,
but since then has remained stable at 2.6 percent of the total economy's
GDP. In 2004, telecommunications services produced $24.8 billion of value
added, a 2.3 percent increase from the previous year, while broadcast distribution
saw a 2.9 percent year-over-year increase in value added to $2.0 billion. Between
1997 and 2004, the Compound Annual Growth Rate (CAGR) for communications services
was 7.3 percent per year, resulting in a total increase of $10.4 billion
or 64 percent (Figure 1-1).
Figure 1-1
d
Between 1998 and 2002, GDP growth in telecommunications services
consistently outperformed that of the Canadian economy, while growth
in broadcast distribution GDP fluctuated around the rate of the
overall economy. In 2004, however, overall economic growth continued
to exceed growth in both telecommunications services and broadcast
distribution. The overall economy's GDP growth outperformed that
of telecommunications services by 0.8 percentage points, despite an
increase in the telecommunications services sector's GDP growth
rate from 1.7 percent in 2003 to 2.3 percent. Similarly, broadcast
distribution growth was 2.9 percent in 2004, 0.2 percentage points
less than the overall economy (Figure 1-2).
Figure 1-2
d
Footnotes
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