Telus 2006 Annual Report Download - page 7

On December 14, 2004, Verizon Communications Inc. (“Verizon”) divested all of its 20.5 per cent
equity investment in the Company by way of a public secondary offering. Post divestiture, Verizon
and the Company ceased to be related parties. Concurrently with the divestiture, Verizon and the
Company further adjusted their business relationships to reflect changes in their business
requirements since the alliance was first established. See section “Alliances” on page 15 of this
annual information form for further information.
On December 30, 2004, through an internal reorganization, a subsidiary of TELUS, TELUS
Solutions Holdings Inc., was wound up into TCI. Upon this wind up, TELUS Services
Partnership ceased to exist and its business was transferred by operation of law to TCI.
In 2005 and 2006, TELUS proceeded with additional internal reorganizations that were modest
in nature.
On September 11, 2006, the Company announced that its Board of Directors had unanimously
approved a proposal to reorganize the Company in its entirety into an income trust. On October
31, 2006, the federal Minister of Finance announced a new tax plan that would increase the
taxation of income trusts. The Company re-evaluated its proposal in light of the Minister’s
announcement and, on November 24, 2006, the Company announced that it would not proceed
with the proposal as TELUS management and the Board of Directors believed it was no longer
in the best interests of the Company and its shareholders to do so.
DESCRIPTION OF THE BUSINESS AND GENERAL DEVELOPMENTS
TELUS is the largest incumbent telecommunications company in Western Canada and one of
the largest telecommunications companies in Canada. It has two reportable segments: wireline
and wireless.
In the wireline segment, TELUS offers the following solutions: voice (local, long distance, call
management and the sale, rental and maintenance of telephone equipment); Internet (high-
speed or dial-up with security features); TELUS TV available in select neighbourhoods with
Video on Demand and Pay Per View; data (IP networks, private line, switched services, network
wholesale, network management and hosting); converged voice and data solutions (TELUS IP-
One Innovation® and TELUS IP-One Evolution®); hosting and infrastructure (managed IT and
infrastructure solutions delivered through TELUS’ IP networks connected to TELUS’ Internet
Data Centres); security solutions (managed and non-managed solutions to protect business
networks, messaging and data, in addition to security consulting services); and customized
solutions such as contact centre services including Call Centre Anywhere™, conferencing
services (webcasting, audio, web and video) and human resource and health and safety
outsourcing solutions
In the wireless segment, TELUS offers the following solutions: digital voice services (PCS
postpaid, PCS Pay & Talk® prepaid, Mike® all-in-one (iDEN) and Push To Talk™ capability on
both Mike (Direct Connect®) and PCS (Instant Talk®)); Internet (TELUS Spark™ including
wireless web, text, picture and video messaging, music, ringtones, image and game downloads,
TELUS Mobile Music®, TELUS Mobile Radio™ and TELUS Mobile TV™, and Wi-Fi Hotspots);
and data devices including PC cards and personal digital assistants (PDAs) available for use on
wireless high-speed (evolution data optimized or EVDO), 1X and Mike packet data networks.
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