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...