The Economic Impact of The New Telecommunications

This essay The Economic Impact of The New Telecommunications has a total of 1320 words and 7 pages.

The Economic Impact of The New Telecommunications Legislation

By: David Lister

Canada has been transformed in recent years into an information based
society. Nearly half of the labour force in Canada works in occupations
involving the collection and processing of information. In a society in which
information has become a commodity, communications provide a vital link that can
mean the difference between success or failure. Telecommunications is a
fundamental infrastructure of the Canadian economy and society. For these
reasons, an efficient and dynamic telecommunications industry is necessary to
ensure economic prosperity. Deregulating the Long Distance Industry is the only
sure way to ensure that prosperity.
Telecommunications in Canada, which include services and manufacturing,
employ more than 125,000 people and generate over $21 billion in revenues (Dept.
of Communications, 1992, p7). Telecommunications helps to overcome the obstacles
of distance in a vast country such as Canada, permitting remote communities to
benefit from services taken for granted in large urban centres. More than 98
percent of Canadian households have a telephone, and there are more than 15
million telephone lines for a population of nearly 27 million(Dept. of
Communications, 1992, p7). It is therefore not surprising that Canadians are
among the biggest users of telecommunications in the world. For example, in 1990,
Canadians made more than three billion long-distance calls (Dept. of
Communications, 1992, p8).
Innovations made possible through telecommunications have also
contributed significantly to the phenomenal growth of the Canadian
telecommunications industry. For example, the total value of the major telephone
companies\' investment in their facilities rose from $17.8 billion in 1979 to
$40.3 billion in 1990. In the same year, Canadian telecommunications companies
reported more than $15 billion in revenues, accounting for an estimated 2.7
percent of the Gross Domestic Product (GDP). In addition, in 1990 the telecom
industry achieved a real growth rate (after inflation) of 8.6 percent compared
to 0.3 percent for the Canadian economy as a whole. Telecommunications is also
Canada\'s leading high-technology industry; its Research and Development costs of
$1.4 billion in 1990 represent about 24 percent of total expenditures in this
area. This shows how telecommunications has come to play such a vital role in
our society, in addition to b

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