Telus 2005 Annual Report Download - page 14

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13
market by approximately 7.5 million people as of the end of 2005, while allowing TELUS to
avoid estimated capital expenditures of approximately $800 million over the 10-year term of the
agreements. In 2002 and in 2005, these Roaming/Resale Agreements were amended to include
roaming for 1X and EVDO, respectively. At the end of 2005, TELUS’ national digital networks
combined with coverage provided by the Roaming/Resale Agreements reached approximately
30.6 million Canadians.
The following table sets forth certain statistical information with respect to the wireless business
segment:
Wireless business December 31
2005 2004 2003
Net subscriber additions (000’s) (1) 584 512 431
Gross subscriber additions (000’s) 1,279 1,121 987
Wireless subscribers (000’s) (1) 4,521 3,936 3,424
Penetration rate (2) 14.5% 12.9% 11.5%
Wireless market share, subscriber based 26.9% 26.1% 25.5%
Average monthly revenue per subscriber unit $62 $60 $57
Minutes of use per subscriber per month (“MOU”) 399 384 350
Cost of acquisition, per gross addition $386 $389 $430
Monthly deactivations (churn rate)(1) 1.4% 1.4% 1.5%
Digital population coverage (millions) (3) 30.6 30.0 29.5
Full-time equivalent employees(4) n/a 5,915 5,387
Total employees 6,931 6,298 5,690
(1) Based on an audit of the prepaid platform in 2003, a one-time adjustment was made to the prepaid subscriber
base. Cumulative subscribers were reduced by approximately 7,600. Of the 7,600, net additions as recorded for
2003 reflected a 5,000 adjustment for current year deactivations. Management believes the deactivations related
to the prior period are immaterial and therefore net additions have not been restated. Furthermore, 2003 churn
was calculated to reflect the 5,000 deactivations in the current year.
(2) Subscribers divided by population coverage.
(3) Includes expanded population coverage in 2005 of approximately 7.5 million in the PCS coverage area
(2003 – approximately 7 million) due to the Roaming/Resale Agreements.
(4) The measure for full-time equivalent employees is not available for 2005 as it does not factor in the
effective overtime hours on staff equivalents because of the labour disruption.
TELUS wireless networks
TELUS owns and operates a national digital PCS network, and analogue and digital cellular
networks in Alberta, B.C., and eastern Québec, with 40 to 45 MHz of PCS spectrum throughout
all major population regions of Canada. TELUS continues to build significant microwave
facilities in order to reduce costs. TELUS has combined these networks under one national
brand. Substantially all of TELUS’ digital subscribers are provided extended coverage in
Canada, the U.S. and various other countries through analogue and digital roaming arrangements
with other carriers by means of dual-mode or tri-mode, dual-band handsets.
TELUS also owns and operates an ESMR digital wireless business communications service
under the MikeTM trademark using the integrated digital enhanced network (“iDEN”) technology.