Certainly.
We take advantage of this service. Canadians use about 90% more data on average than users in these countries, and 83% of all mobile traffic in Canada travels over the latest generation 4G networks, compared to an average of only 51% of mobile traffic in these major European economies.
Wireless infrastructure also requires significant spectrum investment. More than $12 billion has been invested in spectrum auctions since 2008, and the government currently benefits from more than $1 billion per year in direct revenue from payments for the right to use spectrum.
All of these investments create jobs directly related to network expansion and enhancement and the ongoing delivery of advanced wireless services from Canada's service providers. In 2015, Canada's wireless industry supported 139,000 full-time-equivalent jobs.
Infrastructure investments will continue to be necessary to meet the demand of exploding data use and ensure a consistent level of service for all Canadians. Strategic government policies can facilitate additional investment in wireless network infrastructure to help ensure this demand is met and support innovation and economic development across Canada.
To further enable investment in wireless network infrastructure, CWTA submits that budget 2017 include an accelerated capital cost allowance from current rates to 50%, for classes of depreciable assets that are linked to telecom network equipment, including broadband networks. The direct impact of this increased telecommunications network infrastructure investment, enabled by these proposed changes, would be a $163-million increase in GDP and an additional 1,600 jobs.
Beyond the direct impacts, additional investment in telecommunications infrastructure would help more Canadians maximize their contributions to economic growth, particularly by enabling businesses across the country to expand, prosper, and service customers in Canada and internationally. Businesses will also be better served if the government can help to ensure they compete on a level playing field rather than facing a disadvantage due to existing regulation.
Mobile video is expected to account for 77% of mobile traffic in Canada by 2020, up from around 60% today, as Canadians continually turn to mobile devices to be entertained and access news media. However, if the current GST/HST legislative framework is not amended, Canadian providers of digital products and services will continue to be burdened by an up to 15% price disadvantage compared to their foreign competitors.
Currently, foreign suppliers of digital products and services, such as online news and entertainment services, music, movies, and software, are not required to collect or remit HST, while similar Canadian firms are. The competitive advantage given to foreign suppliers by this policy undermines Canadian investment and innovation by encouraging Canadians to spend money outside of Canada, to the detriment of all who benefit from a strong digital economy.
Canadians growing preference for digital-based products and services makes closing this loophole more important than ever. Indeed, as consumer preferences increasingly shift from physical goods to digital options, Canadian firms will be further disadvantaged, and the revenue loss suffered by federal and provincial governments will continue to grow.
We strongly believe that the government should ensure taxation parity among all suppliers of digital goods in Canada, removing the competitive advantage currently enjoyed by foreign firms. This would bring Canada's regime in line with the EU, Norway, Japan, Korea, Australia, and New Zealand.
Thank you for your time. I'm happy to answer any questions you may have.