Telus 2010 Annual Report Download - page 22

How is TELUS competing in the
residential TV and Internet markets?
JOE NATALE
Executive Vice-President and
Chief Commercial Officer,
TELUS Customer Solutions
In past years, we have faced the
competitive challenge of the cable-TV
companies making steady inroads into the local telephony
market. However, the opportunity to compete effectively in the
entertainment market was constrained given that our broadband
footprint was not large enough to mass market our TV services.
In 2010, the situation began to turn in our favour.
In 2010, TELUS created competitive advantage in Western
Canada and Eastern Quebec on several fronts. Facilitated
by ongoing capital investments, we introduced Optik TV and
High Speed Internet service, launched an innovative marketing
campaign and improved our service bundles.
TELUS’ ongoing significant investment in the expansion of
our fibre-optic network in recent years has given us the capacity
to introduce Western Canadians to the most compelling home
entertainment services on the market today.
In 2010, TELUS revolutionized home entertainment with
a new suite of advanced TV and high-speed Internet services.
Optik High Speed Internet provides access speeds of up to
25 megabits per second (Mbps) available wirelessly throughout
a customer’s home. Optik TV, powered by Microsoft Mediaroom,
is a superior TV service that offers customers access to over
400 TV channels, including more than 85 in HD, video on demand,
picture-in-picture browsing, fast channel changing and on-screen
call display for incoming phone calls. A key differen tiator is
PVR Anywhere, which wirelessly networks up to six TVs in the
home with one multi-tuner PVR, allowing customers to pause
a recorded show in one room and resume watching it in
another room.
A further development was the launch of Remote Recording
last August, an integrated solution that allows Optik customers
to program their PVR remotely using web-enabled devices such
as iPhones and certain other smartphones. Additionally, TELUS
Optik TV customers were among the first in the world to be able
to use the Xbox 360 as a digital set-top box.
As a result of these service enhancements, Optik experienced
very strong demand in 2010 with a record 144,000 TV additions,
an 85 per cent increase in TELUS’ TV subscriber base.
High-speed Internet growth has also resumed and network
access line erosion has slowed.
Notably, we took the opportunity with the Optik launch to
evolve our nature-based brand with the introduction of the
first person to appear alongside a TELUS critter. The TV spots
and web videos with Danny the installer allow us to better
explain the many Optik features to consumers while staying
true to our brand promise of making new technologies
simple, relevant and enjoyable to use.
TELUS’ extensive Western Canadian distribution network is
a key competitive advantage over our major cable-TV competitor,
giving us the ability to be a one-stop shop for all mobility and
wireline offerings. We also have the advantage of being able
to offer an integrated service bundle in Alberta, B.C. and Eastern
Quebec with Optik TV and High Speed Internet, along with
wireline and wireless voice and data.
These differentiating factors and innovative initiatives, par-
ticularly those related to our entertainment offering, are providing
positive momentum for TELUS in the competitive TV and
high-speed Internet market.
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