The Importance of Telecom Policy in Driving Infrastructure Investment

Telecommunications policy plays a critical role in shaping investment in vital infrastructure projects across nations. Canadian policymakers are now faced with crucial decisions that could either bolster or hinder the country’s capacity to support these transformative initiatives. Recent discussions in a Hill Times Policy Briefing address the pivotal question: Will government frameworks support continued significant investment in telecommunications infrastructure, or will they inadvertently constrain resources and progress?

Telecom Networks: Foundation of National Progress

The importance of robust telecommunications networks cannot be understated, as highlighted by Robert Ghiz, CEO of the Canadian Telecommunications Association. In his commentary, he underscored that major projects such as liquefied natural gas expansion, tidewater pipelines, and the Toronto-Quebec City high-speed rail link, are all reliant on world-class telecom networks. Over the last decade, Canada’s telecom industry has invested more than $130 billion in both wireless and wireline infrastructure. This consistent investment has made Canada a global leader in delivering high-speed, reliable networks that serve as the foundation for future economic growth.

However, sustaining these achievements requires a policy environment that incentivizes investment. Government regulations—ranging from wholesale internet access frameworks to cumbersome compliance requirements—can deter resource allocation to network infrastructure. Policymakers must align their strategies with industrial goals to ensure continued development of resilient, high-performing networks that underpin critical national projects.

Regulatory Barriers and Their Impact on Investment

Erik Bohlin, a telecommunications economics expert from Western University’s Ivey Business School, warns that current policies may actually push investment flows out of Canada. Regulatory measures like spectrum set-asides, roaming rules, and mobile virtual network operator policies could be counterproductive, compromising both network resilience and competition. Bohlin raises an important question: Should Canada focus on network-based competition to enhance resilience, or continue prioritizing service-based competition?

Critics also argue that excessive bureaucracy and overregulation contribute to a challenging environment for attracting foreign investment. In contrast, countries like the United States have seen increased business investment due to streamlined regulations. As noted by columnist Brian Lilley, Canada must rethink its approach to avoid falling behind in a global race for growth-driving capital.

Policy Solutions for Sustaining Telecom Growth

For Canada to remain competitive, government authorities must establish policies that encourage continuous capital investment by telecommunications providers. Just as infrastructure policies reward other critical sectors like transportation and energy, telecom providers need similar incentives to expand and innovate. Modernizing regulatory frameworks, minimizing excessive compliance burdens, and fostering foreign direct investment are key steps that can help build resilient and future-ready telecom networks.

Strong, incentivized investment in telecommunications infrastructure will not only enhance digital connectivity but also drive Canada’s broader industrial transformation. Policymakers must seize the opportunity to align telecom regulations with long-term economic growth strategies, ensuring that Canada remains a leader in global infrastructure and digital innovation.