Regulatory Delays Threaten Canada’s Telecom Infrastructure Growth

According to a recent article, the glacial pace of regulatory processes in Canada, led primarily by the Canadian Radio-television and Telecommunications Commission (CRTC), is creating significant challenges for the nation’s telecom sector. As companies invest billions in communications infrastructure such as fiber networks, 5G towers, and spectrum deployment, slow regulatory decision-making is impacting capital allocation and delaying essential projects that aim to modernize Canada’s connectivity landscape.

The Regulatory Bottleneck: A Closer Look

Canada’s telecom industry has long faced substantial regulatory delays that threaten its ability to stay competitive in a fast-paced, technology-driven global market. For example, the CRTC launched a public consultation in 2023 for mobile coverage reporting—a task it was initially directed to complete back in 2020, according to the article. Similarly, decisions on network resiliency standards and fiber attachment rates often take years, with one case stretching five years before finalization in October 2025. By then, companies like Bell were already seeking reviews of the “final” rates, undermining the industry’s ability to move forward in a timely manner.

This mismatch between policy ambition and regulatory execution is stymieing growth. While governments demand increased investment in rural broadband, innovations in AI support, and 5G expansion, regulatory bodies lag in providing the clear directives that would enable these initiatives to thrive. Regulatory delays create uncertainty, rendering Canada less attractive for international and domestic investors, who often prefer jurisdictions with predictable and efficient decision-making processes. Capital is mobile, and ambiguity is costly.

Industry and Global Context: Why This Matters

The telecom sector’s ability to rapidly adapt is critical not only for business operations but also for Canada’s economic growth and global competitiveness. Communications infrastructure underpins technologies like AI, advanced manufacturing, IoT, and smart cities—making it foundational to economic development across industries.

Globally, Canada risks losing ground compared to countries that have embraced faster, smarter regulatory frameworks. For instance, South Korea and the United States have implemented more agile telecom policies, attracting extensive private investment in next-gen technologies like 5G and 6G. According to data from GSMA, South Korea achieved nearly 85% 5G penetration in 2023, while Canada lags behind with fragmented deployment, largely due to a sluggish policy environment.

The ripple effects of this delay are extensive. Rural broadband projects, essential for bridging the digital divide, are postponed. Urban densification projects, crucial for enabling smart-city technologies, slow down. Additionally, uncertainty in regulatory outcomes stifles smaller telecom players’ ability to compete, discouraging innovation and fostering market stagnation.

Future Outlook: The Cost of Inaction

Experts argue that regulatory reform must be a top priority if Canada hopes to remain a competitive player in the global telecommunications race. Three guiding principles emerge as potentially transformative:

• Efficiency: Faster decision-making processes that align with the pace of technological innovation.
• Transparency: Predictable, clear regulations that minimize ambiguity for investors and stakeholders.
• Collaboration: Enhanced communication between regulators, industry leaders, and the federal government to ensure realistic and implementable policies.

Analysts note that Canada’s current regulatory delay risks compounding challenges. If action isn’t taken, the country may not only lose private capital to other regions but also jeopardize its leadership in advanced technologies, such as AI and advanced manufacturing. This would have cascading effects on economic growth, job creation, and national security.

Moving Forward: A Collaborative Solution

Canada’s telecom infrastructure serves as the backbone of its digital economy. However, regulatory inertia threatens to erode the country’s competitiveness. By prioritizing a more streamlined, transparent, and responsive regulatory framework, Canadian policymakers have an opportunity to unlock billions in private investment and accelerate digital transformation.

What do you think are the best solutions for overcoming regulatory delays in telecom? Share your insights below.