Telus 2008 Annual Report Download - page 11

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. 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.
TELUS’ network can provide services to almost every urban and rural home and
business in incumbent territories in B.C., Alberta and eastern Québec. However, in the
face of growing competition and technological substitution, TELUS’ wireline residential
access line services are provided to an estimated 66 per cent of households in B.C. and
Alberta, while approximately 12 per cent of households subscribe to only wireless
telephone services (from all wireless service providers including TELUS). Competition is
also active in the business market, such that approximately 70 per cent of TELUS’ total
business lines are forborne from price regulation.
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 are eligible to receive a subsidy when they provide service to residential
customers living in high cost areas where TELUS, as an ILEC, receives a per customer
subsidy.
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 wireline services to businesses. 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, cable carrier systems and
satellite channels. National and international wireline long distance services are
provided through TELUS’ national network and by way of interconnecting with the
networks of other facilities-based carriers and resellers.
Data, Internet and IT services
TELUS provides “traditional” (or legacy) data services and “enhanced” data services.
Traditional data services include circuit switched, packet switched and dedicated private
lines. 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
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