Telus 2006 Annual Report Download - page 10

TELUS - wireline business segment
TELUS operates as an ILEC in Alberta, B.C. and eastern Québec where it provides
comprehensive local, long distance, data, Internet and information services in its incumbent or
ILEC territories and is a competitive local exchange carrier (“CLEC”) offering services primarily
in central Canada through its non-incumbent or non-ILEC operations. TELUS’ ILEC operations
serve a population of approximately 7.7 million in its incumbent western Canada service
territory, and a population of more than one half million in its incumbent eastern Québec
territory. On a combined basis, wireline services accounted for revenue of $4,823 million for the
year ended December 31, 2006 ($4,847 million for the year ended December 31, 2005)
representing 56 per cent of the total revenue of TELUS for 2006 (60 per cent of the total
revenue of TELUS for 2005).
Local
Local wireline services allow customers to complete calls in their local calling areas and to
access long distance networks, wireless networks and the Internet. Virtually all homes and
businesses in TELUS’ incumbent service areas have access to some or all of its local services.
In addition to local calling, local services generally include enhanced calling features, such as
call display, call waiting, call forwarding and voice mail; Centrex for business customers; public
pay telephones; and competitive long distance carrier access. Local access or exchange
service is the largest component of local wireline service, and is generally provided on a
monthly flat rate basis.
CLECs operating in Canada provide service to their customers over facilities they have
constructed or leased from ILECs in a given region or by reselling the local services of the
ILECs (including TELUS). CLECs that use their own facilities or facilities leased from TELUS
Communications are eligible to receive a subsidy when they provide service to residential
customers living in areas where TELUS, as an ILEC, receives a subsidy (see “Regulation –
Regulation of Local Services”).
TELUS is competing outside its incumbent territories as a non-dominant carrier and has
obtained approval to operate as a CLEC in certain targeted markets in central Canada where it
concentrates on providing business wireline services. TELUS is continuing to pursue CLEC
status in other areas in central and eastern Canada.
Long distance
Wireline long distance services interconnect customers in different local calling areas, and
provide domestic and international connectivity. TELUS offers its residential and business
customers a range of long distance savings plans, billing options, and call options. The largest
component of wireline long distance services is message toll services, which are transmitted
through fibre optic cables, microwave radio systems, cable carrier systems and satellite
channels. National and international wireline long distance services are provided through
TELUS’ national network and by way of interconnection with the networks of other facilities-
based carriers and resellers.
Data, Internet and IT services
TELUS provides both “traditional” (or “legacy”) data services and “enhanced” data services.
Traditional data services include circuit switched, packet switched and dedicated private lines.
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