Telecommunications in Canada

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The telecommunications industry in several important and dramatic ways does not fit the stereotype of a service industry. In particular, it is a relatively capital intensive industry that has enjoyed well-above average rates of productivity growth. Technological changes affecting the industry in recent years have been marked and have spawned new communications activities such as cellular radio. The employment growth generated in the industry has been associated with an increase in average educational levels, rather than a significant deskilling that numerous observers of the service sector worry about. The prospects are for continued performance along these lines. However, continued government restrictions on competition in the industry could thwart the realization of many of the benefits of productivity and technological change on both the supply and demand sides of the market.

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