Canada needs telecoms policy reset to unlock next wave of digital growth, GSMA report finds 

New ‘Mobile Economy Canada 2026 report’ shows the mobile industry generated $120 billion in economic value in 2025, with productivity gains at the heart of its contribution

GSMA urges renewed focus on investment and innovation to support Canada’s AI ambitions, high-quality jobs and digital services enabled by the next generation of 5G and 6G connectivity

TORONTO, October 20th, 2026: Canada must refocus telecoms policy on investment and innovation to secure its next phase of digital competitiveness, according to a new report on Canada’s mobile sector, launched today by the GSMA, which represents mobile operators worldwide.

The Mobile Economy Canada 2026 report, launched today, warns that sustained investment in mobile networks, AI infrastructure, cybersecurity and resilience is essential to delivering Canada’s ambitions for productivity growth, digital sovereignty and advanced manufacturing.

The report finds that mobile technologies and services generated (CAD165.7 Billion) $120 billion in economic value in 2025, equivalent to 5.4% of Canada’s GDP, with (CAD96.67 billion) $70 billion attributable to productivity effects. Mobile’s contribution is forecast to reach (CAD234.7 billion) $170 billion by 2030, growing more than three times faster than the wider economy. At a time of slower growth, productivity pressures and trade uncertainty, mobile networks are not simply communications infrastructure: they are productivity infrastructure, underpinning Canada’s broader digital economy, as well as more than 200,000 high-quality jobs across the country.

However, Canada’s telecoms policy framework is at an inflection point. Competition and affordability measures have helped reduce consumer prices, but the market has matured: operator revenues are plateauing, costs are rising, and the sector must continue investing in network capacity and performance, alongside AI-ready infrastructure, cybersecurity, resilience and future spectrum, to support emerging digital services, growing data demand and Canada’s broader economic ambitions. Without stronger investment incentives and regulatory certainty, network quality, innovation and Canada’s international competitiveness risk weakening over time.

Niall Magennis, Senior Policy Director at the GSMA, said: “Canada has strong foundations for digital growth, but those foundations need continued investment. Mobile networks connect people and businesses to the data centres, computing power and essential services that will drive the AI economy. If Canada wants to lead in AI, raise productivity and strengthen its economic resilience, telecoms policy must put investment and innovation at its heart.”

“Affordability and competition remain important, but the next challenge is to make sure operators can invest in more advanced and resilient networks and the next wave of connectivity. That means creating an enabling policy environment in which long-term investment can flourish.”

Connectivity powering productivity across the economy

The report highlights how 5G, cloud and edge infrastructure can help Canadian firms improve efficiency, control costs and compete in a challenging economic environment. Private 5G networks and predictive maintenance support manufacturing; connectivity enables remote operations in mining and energy; connected fleets and real-time tracking improve transport and logistics; and sensors, drones and precision farming can raise agricultural productivity. Mobile networks also connect businesses and consumers to the compute infrastructure needed for wider AI adoption.

Canada has natural advantages in the AI economy, including clean renewable energy, a colder climate that lowers data-centre cooling costs, leading research institutions and a skilled workforce. Turning these strengths into economic gains will require continued investment in the connectivity linking data centres, AI services and the wider economy.

High-quality jobs supporting Canadian communities

The report also highlights the role the mobile ecosystem plays in supporting almost 200,000 high-quality jobs across Canada, including around 150,000 direct and 50,000 indirect roles in 2025 – approximately 1% of Canadian employment. The average telecoms job paid CAD86,174, around 30% above the national average of CAD66,426. Among ICT professionals, 95% hold permanent contracts, 98% work full-time and 78% have a university degree, underscoring the sector’s contribution to skilled, stable employment and how this supports Canadian families and communities.

Sustaining the next wave of 5G investment

Canadian operators have made substantial progress since the country entered the 5G era in 2020. By mid-2026, 5G covered just over 94% of the population; at the end of 2025, it accounted for nearly 63% of mobile connections, about twice the global average of 31%. Yet Canada ranked 21st of 46 markets in the GSMA Intelligence 5G Connectivity Index, with a score of 60.2 against an index median of 54.8, showing that strong adoption alone will not guarantee leadership.

Meeting future connectivity and digital service demands will require renewed investment in infrastructure. The GSMA calls for an investment-led policy approach, including fair spectrum pricing and renewal terms, timely access to additional spectrum, incentives for AI infrastructure and continued support for rural and Indigenous connectivity. These measures can help Canada turn its connectivity strengths into higher productivity, stronger economic growth and long-term digital competitiveness.

ENDS

Notes to editors: All dollar figures are US dollars unless specified as CAD. The Mobile Economy Canada 2026 is published by GSMA Intelligence.

About the GSMA: The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Find out more at gsma.com.