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Essay on Long Distance Deregulation and its effects on the economy - The Economic Impact of The New Telecommunications Legislation By David Lister Canada has been transformed in recent years into an information based society Nearly half of the labour force in Canada works in occupations involving the collection and processing of information In a society in which information has become a commodity communications provide a vital link that can mean the difference between success or failure Telecommunications is a fundamental infrastructure of the Canadian economy and society For these reasons an efficient and dynamic telecommunications industry is necessary to ensure economic prosperity Deregulating the Long Distance Industry is the only sure way to ensure that prosperity Telecommunications in Canada which include services and manufacturing employ more than 125000 people and generate over 21 billion in revenues Dept of Communications 1992 p7 Telecommunications helps to overcome the obstacles of distance in a vast country such as Canada permitting remote communities to benefit from services taken for granted in large urban centres More than 98 percent of Canadian households have a telephone and there are more than 15 million telephone lines for a population of nearly 27 millionDept of Communications 1992 p7 It is therefore not surprising that Canadians are among the biggest users of telecommunications in the world For example in 1990 Canadians made more than three billion long-distance calls Dept of Communications 1992 p8 Innovations made possible through telecommunications have also contributed significantly to the phenomenal growth of the Canadian telecommunications industry For example the total value of the major telephone companies investment in their facilities rose from 178 billion in 1979 to 403 billion in 1990 In the same year Canadian telecommunications companies reported more than 15 billion in revenues accounting for an estimated 27 percent of the Gross Domestic Product GDP In addition in 1990 the telecom industry achieved a real
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