MS PowerPoint _2.01 MB_ - About TELUS

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MS PowerPoint _2.01 MB_ - About TELUS Powered By Docstoc
					Q2 2006 TELUS investor
    conference call
Darren Entwistle • member of the TELUS team




                                   August 4, 2006
Improving Canadian wireless industry* Q2 economics
  Wireless industry revenue up 17%, subscribers up 11%
  ARPU up 5% and churn down to 1.6%
  Lifetime revenue up 8%
  Average COA trend reverses down from Q1
  EBITDA up 22%, margins @ 43.5%, cash flow up 24%




 * TELUS, BCE and Rogers



  Wireless industry remains vibrant and investing in growth
                              4
    Push to implement the Telecom Policy Report

 Supporting TPR panel and Industry Canada’s thought leadership

                Other CRTC developments

 2005 VoIP decision referred by Cabinet back to CRTC
 Local forbearance decision – appealed
 Mobile TV broadcasting not regulated
 Third local price cap proceeding underway for 2007




    Opportunity for positive regulatory and policy change

                              5
                  2006 – second quarter review


              Total subscriber connections

                             10.4                (millions)
                9.9
  9.4
                                                   Res NALs

                                                    Bus NALs

                                                    Dial-up Internet

                                                   High-speed Internet

                                                   Wireless

Q2-04         Q2-05        Q2-06


Connections increasing with strong wireless and Internet growth
                               6
              Q2 review - consolidated

 2006 consolidated guidance updates
    Revenue up $25M to $8.625 to $8.725B
    EPS range increased 50 cents to range of $2.90 to $3.10
    Capital expenditures up 3% to approx. $1.6B




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                   Q2 review - wireline

 Moderate NAL decline and strong high speed Internet growth
 Competition affecting LD revenue and non-ILEC
 TELUS resilient relative to North American industry
 Operating themes
    Stabilize traditional services
    Continue Future Friendly Home applications
    Continue productivity and efficiency programs




                               8
            Q2 review – wireline efficiency

 Efficiency programs ongoing since 2001
 Facilitated by new collective agreement
 Three broad categories
    Outsourcing
    Consolidations
    Process improvements
 $30M restructuring charges in Q2 / $81M last 3 quarters




     Efficiency programs to continue with fourth phase
                             9
                  Q2 review - wireless

 Strong revenue growth of 18%
 ARPU up for 14th consecutive quarter (yr over yr) due to data
 EBITDA up 20% and margin up to 46.4%
 EVDO network rolled out to 19 communities across Canada




High speed EVDO deployment catalyst for further data growth
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Amp’d Mobile – Canada
Powered by TELUS
       Exclusive arrangement and investment

 Amp’d Mobile responsible for marketing, freshest and
  exclusive entertainment content, and optimized handsets
 TELUS responsible for managing sales and distribution,
  billing, client care, network options and pricing
 Targeting 18 to 35 age demographic and lifestyle
 Exclusive licensing and service agreement – not a
  traditional MVNO
 Amp’d Mobile is a premium brand with high ARPUs focused
  on mobile media not traditional voice and postpaid focus
 TELUS Ventures investing US $7.5M in Amp’d Mobile, Inc.




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Peter Adderton
Founder & Chief Executive Officer
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Amp’d Investors




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Amp’d Is Mobile Media




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Q2 2006 TELUS investor
    conference call
Darren Entwistle • member of the TELUS team




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