Telus 2009 Annual Report Download - page 6

GENERAL DEVELOPMENT OF THE BUSINESS
TELUS is a leading national telecommunications company in Canada, offering a wide
range of wireline and wireless communications products and services including data,
voice and entertainment. In 2009, TELUS generated $9.6 billion in revenue and had
12 million subscriber connections including 6.52 million wireless subscribers, 4.05 million
wireline network access lines, 1.22 million Internet subscribers and 170,000 TELUS TV
subscribers.
Three Year History
During the three-year period ended December 31, 2009, TELUS undertook a number of
acquisitions, internal reorganizations and business development opportunities.
A key focus for TELUS in 2009 was its investment in broadband networks and services
to enhance its competitive position and support future growth opportunities. The
Company also continued to implement an array of initiatives that are expected to
improve efficiency and reduce costs, including: rationalizing external supplier spending;
simplifying processes and decommissioning uneconomic products; reducing staffing
levels, freezing management compensation increases and containing benefit costs;
consolidating some business units; leveraging business process outsourcing and off-
shoring; and reducing and controlling expenses operation-wide.
In November 2009, TELUS successfully launched its new national advanced wireless
network based on the latest version of high-speed packet access (HSPA) technology,
facilitated by network sharing agreements with Bell Canada.
In September 2009, TELUS acquired Black’s Photo Corporation, a national imaging and
digital retail company for $28 million ($26 million net of cash acquired). This investment was
made with a view to enhancing the Company’s distribution of wireless products and services
across Canada and particularly in the province of Ontario.
In June 2009, to expand the addressable market for TELUS TV, TELUS announced that
it was offering satellite TV service under the TELUS brand in Alberta and B.C., thereby
expanding TELUS TV coverage to over 90% of the population in those provinces.
For additional details on these 2009 developments and other events or conditions that
influenced the Company’s general development, see MD&A Section 2.2 Strategic
imperatives, as well as progress on the Company’s priorities for 2009 in MD&A
Section 3: Key performance drivers.
In 2008, TELUS purchased the remaining interests in Ambergris Solutions Inc. (TELUS
International Philippines), in which TELUS first acquired a controlling interest in 2005.
Also in 2008, the Company acquired a direct 29.99% economic interest in Transactel
Barbados Inc. (Transactel), a business process outsourcing and call centre company with
facilities in three Central American countries, for $19 million. Additional contingent
consideration could become payable depending upon Transactel’s earnings for the year
ending December 31, 2011. The investment was made with a view to enhancing the
Company’s business process outsourcing capacity, particularly regarding Spanish-language
capabilities.
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