TECH SUPPLIER Jun 2021 - Market Perspective - Doc # CA46290421

Canadian Communications Service Provider Capex Spending, 2020–2021


Lawrence Surtees

This IDC Market Perspective updates IDC Canada's previous analysis of Canadian communications service providers' 2020 capital expenditure (capex) forecasts and provides 2021 estimates. We analyze major technological drivers of the almost C$12 billion capex spending budgets in 2021, including 5G wireless and 400G optical next-generation networks (NGNs), and the impact of the global COVID-19 pandemic.

"The COVID-19 pandemic continues to place unprecedented strain on all communication networks, and, fortunately, ongoing capital investments in NGN fibre-optic and 4G and 5G wireless networks have enabled providers to cope with unprecedented demand without incurring network failures," says study author Lawrence Surtees, vice president of Communications Research and principal analyst at IDC Canada. "The pandemic underscores the strategic importance of continued investments in NGN technology by service providers to not only cope with traffic demands and for their own future revenue growth but for digital transformation (DX) of Canadian enterprises and Canada's economic development and future prosperity."



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