DIGITAL TRANSFORMATION

The pandemic accelerated Canada’s digital transformation, spurring widespread adoption of e-commerce and remote work. The incoming government needs to build on this momentum while making highstakes decisions about the infrastructure and regulation of the digital economy.

The central issues are 5G wireless service and rural broadband. Canada’s telecommunications companies are racing to build ultrahigh-speed wireless networks across the country – which are expected to underpin a range of new industries, from autonomous vehicles to telemedicine – and are expanding internet services to remote areas. During this build-out, the federal government needs to balance affordability against the need for massive private-sector investment.

Large telecom companies want to limit competition, especially in 5G spectrum auctions, arguing they need to be able to make a decent return on their multibilliondollar investments. Smaller companies say increased competition will bring down consumer prices. Crucially, the incoming government will have to decide whether to green-light Rogers Communications Inc.’s proposed $26-billion acquisition of Shaw Communications Inc. and whether to allow the use of equipment made by Chinese telecom giant Huawei Technologies Co. Ltd. in Canada’s 5G system.

The next government is expected to oversee the introduction of open banking legislation, aimed at giving banking customers more control over their data and encouraging competition from fintech startups. Policy makers must also keep an eye on advances in artificial intelligence, quantum computing and digital currencies, all of which could drive major economic changes in the coming years.