Telus 2006 Annual Report Download - page 11

Enhanced data services provide greater functionality to the customer, allowing a customer to
compress their telecommunications applications onto a single infrastructure. The primary
enhanced data services offered by TELUS are Internet access, private Intranets, wide area
network outsourcing and electronic commerce. Customers may choose from a wide range of
data services to suit the complexity of their requirements, including required speed and volume.
TELUS is the second largest ISP in Alberta and B.C., and the fourth largest wireline ISP in
Canada. As at December 31, 2006, TELUS had 1,110,800 wireline Internet subscribers,
including 916,700 high-speed Internet subscribers. In 2006, the number of high-speed
subscribers increased by approximately 20 per cent. TELUS has seen an increase in the use of
data services such as business Intranets by business customers and in the use of personal
computer and Internet access by residential customers. TELUS also offers a range of
broadcast, teleconferencing and advanced intelligent network services – services that can be
customized to meet the specific needs of individual customers through software changes to
network switches. These services include special number services such as toll free 1-800 and
1-900 and enhanced call routing.
Through growth, investment and a series of strategic acquisitions completed prior to 2002,
TELUS also became a leading managed data-hosting provider in Canada with a national
network of intelligent Internet data centres.
TELUS provides businesses with IT services such as IT outsourcing, application development
and sustainment, and national IT consulting. As a provider of Web hosting services, TELUS
also offers managed hosting, co-location including shared Web and e-mail hosting services,
media streaming, data storage and security services. In addition, TELUS offers managed
applications services and software such as online backup Web conferencing, expense
management, customer relationship management and sales force automation. These services
are available across Canada and can be enhanced by connection with TELUS’ infrastructure
through points of presence throughout Alberta and B.C., Winnipeg, Regina, Saskatoon, and
many cities in Ontario and Québec.
Recent developments - consumer
An important element of the Company’s wireline revenue growth strategy is the TELUS Future
Friendly Home initiative in its incumbent service areas. TELUS offers a suite of integrated,
advanced digital and wireless services that leverage its significant investments in high-speed
Internet. Two services, TELUS Home Networking and TELUS HomeSitter, were launched in
2004. In 2006, TELUS continued the expansion of its digital television service, TELUS TV®, in
select neighbourhoods in Calgary and Edmonton, and launched service in Vancouver following
extensive trials with TELUS employees. Employee trials of TELUS TV are underway in
Rimouski. In September 2006, TELUS announced that it intends to invest $600 million between
2007 and 2009 to enhance its broadband infrastructure. This investment will enable emerging
high-speed Internet services and expand network coverage across British Columbia, Alberta and
Eastern Québec. The broadband project complements a rural capital investment program to
bring high-speed Internet services to more than 450 additional remote communities B.C.,
Alberta and Eastern Québec by 2010. (See “Management’s Discussion and Analysis – Risks
and Risk Management – Section 10.3 Regulatory” in TELUS’ 2006 Annual Report – Financial
Review).
10