In February 2022, The Conference Board of Canada invited experts from a cross-section of organizations to a leadership roundtable to get their insights on the current state of the telecommunications sector in Canada and how consolidation may impact key indicators consequential for consumers and businesses. Some highlights:
Canada’s telecom industry spends 5.3 per cent more on capital expenditures (as a share of revenue) than its counterparts in other countries. Geography, scale, and spectrum costs all contribute to these higher capital expenditures.
Canada has some catching up to do in terms of 5G deployment.
Regulators need to monitor the experiences of individuals and businesses when it comes to the potential impact of consolidation on the availability and uptake of advanced telecom services.
If consolidation were to occur, the government’s evaluation framework should ensure that a meaningful portion of potential efficiency gains is passed on to end users in the form of increased availability, higher quality of services, and lower prices.
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