CONCLUSION
Given the fundamental role of communications in Canadian society, and the vital importance of this sector in the Canadian economy, deregulation (or more accurately, easier regulation) of the telecom market will ensure that the Canadian telecommunications industry can successfully meet the challenges of the coming decades. By promoting the establishment of a more open telecommunications market, deregulation
will contribute to improving Canada's competitiveness. Telecommunications is the country's leading high-technology industry (Dept. of Communications, 1992). It is one of the few industries in which Canada is a world leader, and it provides an essential infrastructure for Canadian businesses. The economic importance of this sector is apparent, and the deregulation of telecommunications recognizes the urgent need to give Canada the ability to maintain and promote competitiveness in telecommunications, both nationally and internationally.
Bibliography
Angus, Lis. "Telecom Act Close to Approval" Telemanagement: The Angus Report
on Communications Systems, Services, and Strategies. p17, June-July 1993.
Blackwell, Gerry "The Canadian Telecom Market in Perspective" Telemanagement: The Angus Report on Communications Systems, Services, and Strategies. September 1993.
Bill C62 - An Act Respecting Telecommunications (The Telecom Act) Ottawa: Canadian Federal Government,
1999.
Beatty, Perrin Summary of the Bill Respecting Telecommunications Ottawa: Canadian Federal Government,
1999.
Telecommunications: Legislation for Canada Ottawa: Department of Communications, 2000.
RESEARCH ASSIGNMENT: THE ECONOMIC IMPACT OF THE TELECOMMUNICATIONS LEGISLATION
PROFFESSOR: Bob Delaney
STUDENT: Ryan Sladen
STUDENT #: 037-612-975
DUE DATE: 11/08/02
February, 1995 THE INFORMATION ECONOMY IN CANADA
FACT SHEETS
(Prepared for The G7 Ministerial Meeting on Information Society)
-Canada's information economy can be divided into three main
industry sectors:
- Communications and Computer Service-Producing
industries;
- Communications and Information Technology
Goods-Producing industries; and
- Arts, Cultural and Entertainment
industries.
-The importance of the information economy is increasing over time
as new technology improves the communications infrastructure and as
industries which provide content over that infrastructure continue
to grow.
-Canada has one of the most developed communications infrastructure
in the world: more than 98% of households have telephones; 74% have
cable television service and 99% of the population can receive
off-air broadcasting signals as of 1993.
- The communications and computer service-producing industries
generated about $35 billion in revenues, provided 260,000 jobs
and contributed 4.3% to the gross domestic product in 1994.
Overall growth of 6.9% for carriers and 4% for the computer
service industries' gross domestic product fared better than
the economy average of 3.2% in the last year.
- Canada's advanced communications and computing infrastructure,
combined with its traditional strengths in digital
communications equipment, systems integration and software
development, positions Canada well in the race to create the
applications that will form the basis of the information
economy.
- The total output of the communications and information
technology goods-producing industries was $15.4 billion in 1992
which was an increase of 12.7% from 1988. These industries
provided some 94,000 jobs and contributed 1.4% to the gross
domestic product in 1992.
- The arts, cultural and entertainment industries are also big
contributors to Canadian employment. For example, the book and
periodical publishing, film and video and sound recording
industries and heritage institutions alone employed over 60,000
people in 1992. Related industries are estimated to employ
approximately this number again.
- Revenues generated by the book and periodical publishing, film
and video production and sound recording industries together
with heritage institutions reached $5 billion in 1992.
Including estimated revenue figures for the other arts,
cultural and entertainment industries, produced total revenues
in excess of $10 billion in 1992. These industries will have an
increasing role to play as content industries for the
information economy.
- As Canada moves towards the Information Society, many new
industries are being created; while technology is causing many
existing industries to change and to become increasingly a part
of the information economy.
- Statistically, it will be complex to keep track of the changes
and to be able to analyze the old as well as new industries.
- Canada has been leading in efforts to remain current and is
collaborating with other countries in order to have consistent,
current data and more importantly to analyze the changes
arising from the move towards the information society.
Table 1
THE INFORMATION ECONOMY IN CANADA
List of Industry Sectors
1. Communications and Computer Service-Producing Industries:
- telecommunications service industry
- broadcasting industry *
- computer and software service industry
2. Communications and Information Technology Goods-Producing Industries:
- telecommunications equipment industry
- computer equipment industry
- consumer electronics industry
- electronic parts and components industry
- certain instrumentation equipment industries
3. Arts, Cultural and Entertainment Industries:
- broadcasting industry *
- book and periodical publishing industries
- newspaper industry
- film and video industry
- sound recording industry
- performing arts industry
- heritage institutions (museums and parks)
- libraries
- theatrical and other staged entertainment industries
- commercial spectator sports clubs
- sports and recreational clubs
- gaming and wagering industries
- amusement and recreational service industries
* The communications industry's data include those of the
broadcasting industry. While the broadcasting industry is
noted in both 1 and 3, the data are included in 1.
- Highlights on each of these sectors are provided below. The
data were provided by Statistics Canada. February, 1995
THE INFORMATION ECONOMY IN CANADA FACT SHEETS (Prepared
for The G7 Ministerial Meeting on Information Society)
PART 1: COMMUNICATIONS, COMPUTER AND INFORMATION TECHNOLOGY
SERVICE-PRODUCING INDUSTRIES:
- The players in the TELECOMMUNICATIONS SERVICE INDUSTRY include:
the Stentor Alliance of 9 major regional telephone companies;
50 independent telephone companies; Canada's satellite and
overseas telecommunications carriers (Telesat and Teleglobe); a
host of other carriers such as Unitel, Sprint Canada and
Westel; 2 national cellular carriers (Rogers Cantel and
Mobility Canada); a growing number of radio common carriers;
and some 150 resellers.
- Canada's BROADCASTING INDUSTRY consists of the traditional
off-air radio, television and cable television service
providers. In 1994, approximately 42% of its revenues were
generated by the cable television services, including
pay-television and speciality services.
- The COMPUTER SERVICE INDUSTRY consists of software products
development, professional and processing services and is
composed of approximately 14,000 establishments with over 81%
having less than 250 employees.
- The telecommunications carriers' contribution to the gross
domestic product was $16 billion or 3% of the $528 billion
total gross domestic product in 1994. Similarly, the
broadcasting industry's contribution was 0.4%, while the
computer service industry's was 0.9% of the total economy. The
economy average was 3.2% in 1994.
- The telecommunications carriers' output grew 6.9% or twice as
fast as Canada's gross domestic product in 1994. The computer
service industry's rate of growth was 4% during the same time
period. The broadcasting industry fared significantly worse
than the whole economy with a rate of decline in excess of 3%.
- In 1994, the telecommunications carriers provided 120,000 jobs,
the computer service industry 92,000 jobs and the broadcasting
industry the remaining 48,000 jobs. While there was no change
in the number of jobs provided by the telecommunications
carriers and the broadcasting industry from 1993, jobs
increased by a remarkable 18,000 in the computer service
industry.
- Earnings of employees in the telecommunications, computer and
broadcasting industries was substantially higher than average.
The average annual salary in the computer service industry was
$46,000. It was $44,000 for the other two industries. These
earnings compare favourably with the average $37,000 for the
Canadian economy.
- In 1994, annual revenues for the telecommunications carriers
amounted to about $15 billion. Estimated figures for other
related industries would increase the revenues by an additional
$3 billion. The computer service industry earned almost $15
billion or 41% and the broadcasting industry earned $6 billion
or 17%.
- Profit margins for the telecommunications carriers were above
20% in 1994. It ranged between 5% to 7% for the computer
service industry and around 15% for the broadcasting industry.
- The total assets of the three industries approached $60 billion
in 1994. The telecommunications carriers accounted for $40
billion or two-thirds of this total. The assets were valued at
$6.5 billion or 11% for the computer service industry and $13
billion or 22% for the broadcasting industry.
February, 1995 THE INFORMATION ECONOMY IN CANADA FACT SHEETS (Prepared for The
G7 Ministerial Meeting on Information Society)
PART 2: COMMUNICATIONS, COMPUTER AND INFORMATION TECHNOLOGY
GOODS-PRODUCING INDUSTRIES:
- The telecommunications, computer, consumer electronics,
electronic parts and components and certain instrumentation
goods-producing industries consisted of 1,131 establishments in
1992.
- The TELECOMMUNICATIONS EQUIPMENT INDUSTRY has been driven by
growth in the domestic telecommunications services market.
Canada is the home base for Northern Telecom, one of the
world's five largest telecommunications equipment suppliers.
There are also numerous small to medium-sized
telecommunications equipment enterprises that become world
leaders in their product niches.
- The Canadian COMPUTER EQUIPMENT INDUSTRY is composed of a few
multinational subsidiaries and over 200 Canadian based small
and medium sized enterprises. These firms are designing and
manufacturing leading edge computer systems, peripherals,
storage systems, computer cards, computer parts, terminals and
monitors. The industry as a result produces a very diverse set
of innovative information technology enabled products.
- The CONSUMER ELECTRONICS INDUSTRY comprises makers of
television sets, radios, speakers, domestic sound reproduction
equipment, audio and video recorders and automobile stereo
equipment.
- The ELECTRONIC PARTS AND COMPONENT INDUSTRY is composed of
approximately 300 companies. The manufacturing shipments of
this sector are dominated by the presence of IBM's multi-chip
module facility in Bromont, Quebec. The industry's six
principle product areas are: printed circuits, semiconductors,
capacitors, resistors, switches and connectors. Printed
circuits and semiconductors account for the bulk of its trade.
- The INFORMATION TECHNOLOGY INSTRUMENTATION EQUIPMENT
INDUSTRY
has over 450 establishments, most of them being small and
medium sized, with high growth potential. The principle
products are: process controllers, electronic testing
equipment, medical devises and space navigation equipment.
- In 1992, the COMMUNICATIONS, COMPUTER AND INFORMATION
TECHNOLOGY GOODS-PRODUCING INDUSTRIES contribution to gross
domestic product was $6.4 billion or 1.4% of the total economy.
- With research and development (R&D) spending of $1.5 billion
annually, they are Canada's most R&D intensive industries,
accounting for 15% of all R&D spending.
- Canada's strengths are in digital switching, advanced broadband
networking, data networking and mobile wireless communications
equipment positions the industry to take advantage of
burgeoning opportunities.
- Domestic exports of these industries amounted to $9.9 billion
in 1992, an increase of 59.9% from 1988. During the same
period, imports grew from $14.1 billion in 1988 to $19.2
billion in 1992, representing a 35.4% increase. In spite of
the higher rate of growth of exports, their trade deficit grew
from $8.0 billion in 1988 to $9.3 billion in 1992.
- During the same five year period, total output of these
industries, as measured by the value of manufacturing
shipments, increased. Total output was $11.9 billion in 1988
and $13.3 billion in 1992.
- There has been a steady decrease in the number of jobs created
by these goods- producing industries from 102,174 in 1988 to
99,528 in 1990 and 93,684 in 1992. Total salaries and wages
continued to be around $3.3 billion.
February, 1995 THE INFORMATION ECONOMY IN CANADA
FACT SHEETS
(Prepared for The G7 Ministerial Meeting on Information Society)
PART 3: THE ARTS, CULTURAL AND ENTERTAINMENT INDUSTRIES:
- The communications industry's data include those of the
BROADCASTING INDUSTRY. However, the broadcasting industry is
also considered to be part of the arts, cultural and
entertainment industries. Information on the broadcasting
industry was provided in Part 1 of the fact sheets.
- In 1992, the BOOK AND PERIODICAL PUBLISHING INDUSTRIES AND THE
NEWSPAPER INDUSTRY contributed $4 billion to the total gross
domestic product.
- Revenues of the newspapers industry were $2.9 billion in 1992.
- Revenues generated by the 367 book publishers and exclusive
agents were $1.6 billion in 1992. These firms published 9,056
new titles and reprinted 7,419 titles. Total profits averaged
around 5.6% of revenues.
- The 1,047 periodical publishers earned $852 million in revenues
and recorded an average profit of 5.4% of revenues in 1992.
There were 1,400 periodicals sold with an average circulation
per issue of 37,000 copies.
- The book and periodical publishing provided full-time
employment for 11,300 people and an additional 1,600 part-time
jobs in 1992. Total salaries and wages amounted to $ 470
million.
- The FILM AND VIDEO INDUSTRY is divided into four main
activities: production, laboratory and post production
services, distribution and exhibition. Despite the
unfavourable economic climate of past few years, there are
signs that the film and video industry is coming of age. In
1992, it contributed $824 million to the gross domestic
product.
- Production for television, including commercials, accounted for
69% of all 16,113 productions created for the market in 1992.
- Revenues generated by producers reached $697 million in 1992;
post-production activities revenues totalled $309 million while
film distributors and videocassette wholesalers received $1.2
billion in revenues, and exhibitors earned $510 million.
- The industry provided full-time and part-time jobs for 17,900
employees and for 7,800 freelancers. Wages and salaries
totalled $431 million.
- Technological developments are opening markets and creating new
opportunities for this dynamic industry. More growth is
expected as the new knowledge-based economy continues to
expand.
- One portion of the SOUND RECORDING INDUSTRY is engaged in the
creation, replication and distribution of musical recordings
and managing intellectual property rights associated with these
works.
- The record production and distribution segments of the industry
contributed $240 million to the gross domestic product in 1992.
- The music-instrument manufacturing segment of the industry
contributed $260 million to the gross domestic product in 1992.
- In 1992, this industry released 6,275 new recordings, sold 86
million compact discs (CDs), tapes and vinyl albums. It
generated $834 million in total revenues with a net profit of
$136 million.
- The industry provided employment for 2,800 people and dispersed
$87.1 million in salaries and wages in 1992.
- Rapid advances in technology today are challenging both the
traditional way music is created, produced and the way it is
distributed to consumers.
- PERFORMING ARTS can be described as consisting of four general
disciplines of: theatre, music, dance and opera. In 1992, the
number of live performances by professional, non-profit
organizations increased by 10% from the previous year, to
39,354. Attendance also increased by 6% to 14 million.
- Revenues were $407 million in 1992 with 52% generated by
theatres. Salaries and wages reached $231 million with 47%
allocated for those employed in the theatres.
- The operating surplus of performing arts organizations reached
$2 million. However, many organizations are experiencing
financial difficulties, particularly in the field of music and
opera.
- Overall, performing arts, including for-profit organizations,
provided employment for 88,800 people and contributed $532
million to the gross domestic product in 1992.
- The HERITAGE INDUSTRY consists of museums and related
institutions and nature parks. In 1991, heritage institutions
contributed close to $1 billion to the gross domestic product.
- Attendance continued to increase 3% annually despite a
reduction in the numbers of institutions from 2,300 to 2,260
from 1990 to 1992. Revenues for 1992 totalled $1.1 billion;
this represents a 5% decrease from 1991 revenues.
- Heritage institutions generated 32,300 full and part-time jobs
in 1992 and paid $658 million in salaries and wages. In
addition, 45,000 people worked as volunteers.
- Canada is a world leader in a number of heritage areas, and
efforts are planned to promote and commercialize Canada's
heritage products, know-how and services on the international
scene.
- The majority of LIBRARIES are in the public sector of the
economy. All libraries contributed over $1 billion to the
gross domestic product in 1992.
- Revenues of public libraries were $675 million in 1990.
- In 1992, libraries provided employment for 33,560 people.
- The technological developments are creating new opportunities
for libraries as they move towards electronic delivery of
information to the public.
- OTHER ARTS, CULTURAL AND ENTERTAINMENT INDUSTRIES encompass:
theatrical and other staged entertainment services, commercial
spectator sports clubs, sports and recreational clubs, gaming
and wagering, and other amusement and recreational services.
- The industries, excluding lotteries, consisted of some 16,000
small and medium sized firms and registered revenues in excess
of $5 billion in 1991.
- Households and individuals make up the majority of these
industries' client base.
- In general, salaries and wages account for around 30% of the
industries' expenses. The majority of these industries create
part-time jobs.
- Technological advances are making it easier and less expensive
to manufacture, distribute and receive entertainment products
and services. Specifically, professional sports have strong
links to broadcasting, cable television and wagering
industries. Without links to electronic media and the fees
generated by those links, fewer professional sport teams would
have been formed. These links will continue to grow and
strengthen as electronic media expands to include more modes of
distribution. FURTHER REFERENCES
STATISTICS CANADA:
Statistics Canada, "Canadian Standard Industrial Classification for
Companies and Enterprises 1980" .
Statistics Canada, "Standard Industrial Classification 1980" .
Statistics Canada, "Announcement: Revision of the 1980 Standard
Industrial Classification, January, 1994" .
Statistics Canada, Non-catalogued publication "Selected Economic,
Financial and Cultural Indicators for the
Cultural Industries Sector" .
Statistics Canada, "Services Indicators" (Catalogue 63-016)
Statistics Canada, "Radio and Television Broadcasting" (Catalogue 56-204)
Statistics Canada, "Cable Television" (Catalogue 56-205)
Statistics Canada, "Film Industry" (Catalogue 87-204)
Statistics Canada, "Sound Recording" (Catalogue 87-202)
Statistics Canada, "Book Publishing" (Catalogue 87-210)
Statistics Canada, "Periodical Publishing" (Catalogue 87-203)
Statistics Canada, "Printing, Publishing and Allied Industries"
(Catalogue 36-351)
Statistics Canada, "Heritage Institutions" (Catalogue 87-207)
Statistics Canada, "Performing Arts" (Catalogue 87-209).
Statistics Canada, "Public Libraries" (Catalogue 87-205).
FURTHER REFERENCES
INDUSTRY CANADA:
Industry Canada, "Insight", Annual
Industry Canada, "The Canadian Telecommunications Service
Industries: An Overview Part 1: The Domestic
Situation", November 1994.
CANADIAN HERITAGE:
Canadian Heritage, "The Canadian Periodical Publishing Industry: An
overview", February 1994.
Canadian Heritage, "An Overview of the Film Distribution and
Exhibition Industries in Canada (1988-1992)",
October 1994
Canadian Heritage, "The Film and Video Industry in Canada: An
Overview", April 1994.
Further Information can be acquired from:
Co-Chairs of the Canadian G7 Working Group on Economic Measuring Tools:
Dora Mozes (613) 998-4367
Industry Canada
Luis Leigh (613) 992-2151
Department of Finance