Good morning, Mr. Chair and honourable members.
Good morning, everyone.
Today I will illustrate that wireless prices have decreased significantly as our telecom industry delivers more value for Canadians, and we do so despite the escalating cost factors of production that our industry is experiencing. Additionally, I will emphasize the critical role our industry plays in Canada's economy and societies.
First, according to StatsCan, the price of wireless services decreased 50.4% between 2018 and 2023. During that same period, average data consumption increased by 200%, according to the CRTC. Notably, during the 2023 holiday season, prices were 97% lower than in 2020. Moreover, when compared to the G7 countries and Australia, Canada offers the best wireless value proposition, with prices that are almost 5% lower than the average price that foreign carriers would charge for the same service.
Second, as wireless prices decrease, the prices for other goods in Canada are increasing. Between 2018 and 2023 the cost of rent, transportation, energy, housing and food increased between 22% and 27%. In that same period, our Canadian government confirmed that prices for wireless services declined faster than in any other category of consumer goods and services.
Third, as wireless prices decrease, the costs of building and operating wireless networks are rising markedly. The cost of telecom equipment, paid for mostly in U.S. dollars, has risen over 24% from 2020 to 2023, and price increases from suppliers are accelerating. Canadian labour costs have increased 17%. Utilities and electricity have grown from 15% whilst fuel prices have skyrocketed 54%. Furthermore, Canadian carriers are already paying the highest spectrum costs across the OECD. Over the last 10 years carriers have paid $29 billion for spectrum licences. Indeed, Canada's auction of 3500 megahertz spectrum alone, so critical for 5G networks, extracted a record $9 billion from telecom operators. In contrast, in Japan and South Korea, they gave away the spectrum so that operators could concentrate their spend on deployment. In 2021 alone these spectrum fees accounted for $100 on the annual wireless phone bill of every Canadian.
Fourth, despite these cost factors in Canada being 103% higher than in the G7 and Australia, we continue to invest in and operate the best-quality networks in the world. Telus has invested $259 billion in network infrastructure and operations over the past 24 years. This has contributed to Canada's wireless networks consistently ranking among the best globally—the best for speed, quality, user experience and coverage, according to the OECD. The telecom sector has also rapidly advanced 5G coverage, reaching 90% of our population and continuing to grow.
Next, Telus provides low-income Canadians with highly subsidized access to vital high-speed connectivity. Through Telus's “connecting for good” program, we offer extremely low-cost Internet and wireless services to 1.1 million Canadian families and seniors who are underserved.
Indeed, our industry should be a source of national pride, given that it is powering Canada's digital economies and our digital societies. From 2009 to 2019, broadband connectivity enabled almost 20% of Canada's labour productivity growth. According to StatsCan and PricewaterhouseCoopers, our industry generated almost $77 billion in direct GDP for Canada in 2022 alone. Moreover, our industry supports 724,000 jobs, with wages 42% higher than in other service industries.
At Telus, our charitable and social support for Canadians is truly unmatched.
Since 2000, we have contributed $1.7 billion in philanthropy to our communities and citizens in need. This includes volunteering 2.2 million days of service, which is more than any other company in the world.
Through Telus Health and Telus Agriculture, we are leveraging broadband technologies to answer society’s most pressing challenges in health care transformation and food security.
Importantly, we're also supporting the prosperity and livelihoods of millions of Canadians who own Telus shares. This includes seniors who rely on our dividends for their incomes that support their lives. Of course, it includes our Telus team members, who collectively represent our fourth largest shareholder overall.
Clearly, the telecom industry is delivering enhanced value and lower prices for Canadians, and it is playing a vital role in strengthening our nation’s economy.
Thank you.