Despite the pandemic, Canada’s telecommunications industry output did not drop in 2020. However, its growth fell to a six-year low of 1.5 per cent. We expect a better 2.0 per cent output increase this year, and a stronger 3.7 per cent advance in 2022.
Canadians pay some of the world’s highest telecommunication prices, despite evidence that prices for standard consumer bundles are falling. Industry concentration is an important reason for these high prices—and Rogers’ bid for Shaw promises to increase this concentration.
The industry is currently rolling out the 5G generation of mobile technology, and faces a key auction of associated electromagnetic wireless spectrum positions this year. Although telecommunications employment rose nearly 17 per cent in 2020 due to increased consumer demand during the pandemic, the longer-term trend is downward. We expect the number of telecommunications jobs to continue declining over the next few years, starting with a 1.1 per cent drop in 2021.
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