The Economic Impact of The New Telecommunications

This essay The Economic Impact of The New Telecommunications has a total of 1357 words and 6 pages.

The Economic Impact of The New Telecommunications Legislation

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 being our most important high

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