Telus 2011 Annual Report Download - page 55

TELUS 2011 ANNUAL REPORT . 51
MANAGEMENT’S DISCUSSION & ANALYSIS: 3
Corporate priorities for 2011 – Progress
Deliver on TELUS’ future friendly brand promise to clients
.Initiatives implemented in 2011 to simplify wireless products and pricing, and improve transparency and flexibility, include: improved billing that lists
outstanding device subsidies, increased flexibility to upgrade handsets, and significantly reduced international voice and data roaming costs without
being required to subscribe to a roaming plan, as well as wireless device unlocking. See Section 2.2 – Providing integrated solutions
.Introduced Facebook capability on TV to Optik TV customers
.Late in 2011, began sharing the Company’s Customers First journey with Canadians through an advertising campaign, and set a goal to be the most
recommended company in the markets the Company serves. At the end of the year, customers’ likelihood to recommend TELUS had increased by
seven points to 69%.
Optimize TELUS’ leading wireless and wireline broadband networks
Wireless data revenue grew by 47% in 2011, facilitated by 5.1% subscriber growth and 38% data ARPU growth.
.Balanced costs of wireless subscriber acquisition and retention with wireless margins to achieve monthly churn of 1.68% (as compared to 1.57%
in 2010). The increase was due to the loss of a federal government wireless contract to a low-priced bid by an incumbent competitor. Wireless EBITDA
as a percentage of network revenues decreased slightly to 43.7% in 2011 (43.8% in 2010)
.Launched HSPA+ dual-cell technology in the first quarter and introduced dual-cell-capable data devices and smartphones
.Acquired certain TELUS-branded wireless dealership businesses to enhance distribution of wireless and wireline products and services, as described
in Section 2.2 – Partnering, acquiring and divesting
.Continued strategic migration of CDMA and iDEN customers to HSPA data-capable devices
.Began upgrading the urban wireless network to 4G LTE technology to provide higher bandwidth capability for the ever-growing appetite of clients
for data-rich applications, and prepared for the launch of urban LTE services in February 2012.
Wireline data revenue growth was 14% in 2011, helped by 62% TELUS TV subscriber growth and 6.4% Optik High Speed Internet subscriber growth,
as well as price increases. In addition:
.Substantially completed migration of residential IP TV subscribers from older middleware platforms to the Optik TV experience delivered through
Microsoft Mediaroom by July 2011
.Enhanced Optik TV service by expanding the South Asian channel line-up and increasing HD TV channels to more than 100
.Extended the reach of broadband HD coverage (ADSL2+ and VDSL2) to nearly 2.3 million households in Alberta, B.C. and Eastern Quebec by early 2012.
Drive market leadership position in SMB and healthcare markets
.Opened nine new TELUS Business Stores and more than 40 new SMB zones within corporate stores during 2011
.Launched new SMB services in 2011 (see Providing integrated solutions in Section 2.2)
.In November, launched a new online webstore that provides SMBs with enhanced self-service and account management. The site enables SMBs
to learn about TELUS products and services, submit orders for multiple devices directly online and port in wireless phone numbers
.TELUS Health Solutions began running three pilot projects with electronic medical record providers to help transform healthcare in Canada through
communications technology to reduce costs and errors, better connect patients and help prevent illness (see Partnering and acquiring in Section 2.2).
Continue to improve TELUS’ operational efficiency to effectively compete and fund future growth
.TELUS is reducing its 587,000 square feet of leased space in TELUS House Edmonton, returning some space in 2013 and renewing the lease on
318,000 square feet from 2016 to 2026.
Raise TELUS team engagement to the next level and continue to drive the philosophy of “our business, our customers, our community,
our team, my responsibility”
.The team member engagement score increased by 13 points to 70% in the Company’s annual Pulsecheck survey. This level is within the best employer
zone of 65% and above for a company of TELUS’ size and diverse makeup
.A new collective agreement with the TWU was negotiated and ratified in June without any labour disruption (see Section 10.4)
.The Company’s risk management culture and best practices were further embedded throughout TELUS’ operations (see Section 10 – Board risk
governance and oversight)
.The Company received recognition for its corporate reporting, which enhances the TELUS brand. The 2010 TELUS annual report was recognized
by the CICA with an Overall Award of Excellence and other recognition. TELUS’ 2010 reports also received an eighth-place, A ranking in e.com’s
Annual Report Scan, a global ranking of annual reports
.Advanced TELUS’ leadership position in corporate social responsibility through an increased Dow Jones Sustainability Index (DJSI) score, as well as
being named to the North American DJSI index
.Advanced TELUS’ commitment to give where we live by: improving social outcomes for communities and creating a personal affinity for TELUS
through our cause marketing campaigns; the efforts of 11 TELUS Community Boards in Canada and three new international Community Boards;
TELUS Community Ambassadors®; and programs such as the TELUS Day of GivingTM and Dollars for Doers
.Continued implementing the TELUS Work Styles Program to transition, over several years, the Company’s domestic workforce to as high as 40%
mobile workers (in the office three days each week, sharing workstations). Of the remaining team members, 30% could work at home and 30% could
work at TELUS buildings. The program plans to lower the use of real estate and reduce the Company’s environmental footprint.