The Telecommunications Service Industry

The telecommunications service industry makes a substantial contribution to growth in Canada

• It remained a key sector of the Canadian economy generating 2.6% of economy-wide gross domestic product (GDP) in 2001. Telecommunications GDP grew 12.6% in 2001. The annual growth rate from 1997 to 2001 was 13.9% as compared to 3.5% economy-wide.

Wireless revenue continues to grow

• Total telecommunications service industry revenue reached $31.1 billion in 2000. Growth in telecommunications service revenue was sustained by growth in wireless services in 2001. Growth in wireless revenue is the result of steady subscriber growth, as one-third of Canadians became wireless subscribers.

Growth in Wireless capital expenditure is higher than in wireline

• Telecommunications service contributed 4.6% of economy-wide capital investment in 2000 although wireline and wireless capital expenditure declined in the last part of 2001.



• In terms of R&D;, telecommunications services relies almost entirely on its equipment suppliers, the latter which generated 22.6% of all Canadian private sector R&D; expenditures.

Employment in Wireless grows, with above-average wages...

• The telecommunications industry employed 119,000 people in 2001. Employment gains occurred in wireless while employment in wireline actually decreased.



• Employees in telecommunications services earned about 30% ($45,079) more than employees in other industries ($34,586) in the economy. Average salaries in the wireline exceed those in the wireless market segment by about 4% in 2001.

...and both Wireless and Wireline have a knowledge-intensive workforce

• The telecommunications sector workforce had a high level of education with 27% of all employees in 2001 holding a university degree. In comparison, the Canadian average of all industries was 20%.

Wireline dominates the market

The Wireline Incumbent Carriers, including Bell Canada, Telus Communications, Aliant Communications, MTS Communications, SaskTel, and 47 independent telephone companies, have 69% of total industry revenue.

The Wireline Competitive Service Providers, including all telecommunications service providers (carriers and numerous resellers) competing with the incumbent carriers in various local and long-distance service markets, have 9% of total industry revenue.

The Wireless Service Providers, including Bell Wireless Alliance (Bell Mobility, Aliant, MTS Mobility and SaskTel Mobility) Telus Mobility, Rogers AT&T; Wireless and Microcell Telecommunications, hold 18% of total industry revenue.

The Satellite and Other Telecommunications Services providers, including Telesat Canada, TMI Communications and Stratos Global Corporation, have 4% of total industry revenue.

Contact:
Dora Mozes
(613) 998-4367
mozes.dora@ic.gc.ca