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10 . TELUS 2010 annual report
TELUS performs well in an
increasingly competitive market
Canadian wireless industry market growth accelerated in 2010 with approximately
1.7 million new subscribers and five per cent revenue growth. A key driver has been
the popularity of smartphones, as well as mobile Internet keys. Tablet devices are
also emerging as an important growth segment.
These devices provide customers with increased data functionality including
access to email, Internet, social networking, multiple applications and streaming video.
As a result, wireless data revenue in Canada increased by an estimated 34 per cent
in 2010 to $4.1 billion.
Although smartphones have higher average revenue per unit (ARPU) and lower churn
rates than other devices, they are very expensive and are often sold at a discount, which
can negatively impact operating margins in the short term.
With new entrants expanding into all major markets in Canada, 2010 proved to be
a very competitive year. The number of distribution channels and competitive offers grew
rapidly as new entrants looked to quickly ramp up their operations.
TELUS thrived in this competitive market by leveraging Canada’s fastest* coast-
to-coast HSPA+
network, which enabled us to provide customers with a compelling
selection of innovative
smartphones, including the latest iPhones, BlackBerrys, Windows
Mobile 7 and Android-powered devices.
We also continued to deliver on our future friendly brand promise with Clear & Simple
rate plans, a new initiative to increase transparency regarding handset and hard
ware
upgrades, and ongoing improvements to network speeds and reliability.
TELUS wireless revenue growth accelerated in 2010 due to increased subscriber
net additions and an improved trend in ARPU. The wireless EBITDA margin remained
in the 40 per cent range.
review of operations
WIRELESS
2010 RESULTS – WIRELESS (share of TELUS consolidated)
revenue (external)
$5.01 billion
EBITDA
$2.03 billion
51%
share
56%
share
2011 TARGETS – WIRELESS1 (share of TELUS consolidated)
1 See Caution regarding forward-looking statements on page 38 of this report.
revenue (external)
$5.2 to $5.35 billion
EBITDA
$2.15 to $2.25 billion
52%
share
58%
share
A HISTORY OF INNOVATION
2002 Built national 1X wireless
network, offering fast
wireless Internet access
to 70 per cent of Canadians
2005 Began offering mobile
high-speed Internet
services such as Air Cards
and TELUS mobile TV
2008 Launched Koodo Mobile,
our value wireless brand
and service
2009 Nationwide launches
of fastest* coast-to-coast
HSPA+ network, iPhone
and simplified rate plans
2010 Launched TELUS Smart
Hub mobile Wi-Fi