Telus 2011 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2011 Telus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 182

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182

2 . TELUS 2011 ANNUAL REPORT
2011 RESULT S – WIRELESS
(share of TELUS consolidated)
revenue (external)
$5.46 billion
EBITDA
$2.19 billion
58%
share
53%
share
SNAPSHOT OF OPERATIONS: WIRELESS
growingmomentum
Canadian wireless industry market growth continued in 2011
with more than 1.6 million new subscribers and 4.5 per cent
revenue growth. Key drivers have been the acceleration of smart-
phone adoption, the growing popularity of mobile Internet keys
and tablets, and continued price competition.
New advanced wireless devices are satisfying customer
demand for increased data functionality, including access
to email, Internet, social networking, applications and streaming
video. As a result, wireless data revenue in Canada increased
by more than 30 per cent in 2011 to exceed $5.5 billion.
Smartphones are expensive and often sold at a deep discount
by carriers to promote adoption. This has driven up acqui sition
and retention costs and pressured industry margins.
However,
increases in smartphone sales and usage are
driving
wireless
data revenue growth. TELUS’ data revenue growth of 47 per cent
led the industry in 2011. Increased data usage more than offset
the voice revenue decline resulting from price com petition and
lower voice usage, which is reflected in TELUS’ average revenue
per unit (ARPU) growth. Industry capital expenditures increased
as carriers built new long-term evolution (LTE) networks and
additional cell sites to accommo date the surging data demand.
Competitive pressures continued as new entrants expanded
their coverage and pushed hard to gain new sub scribers
with discounted price plans and subsidized devices. In Western
Canada, however, TELUS’ major cable-TV competitor decided
against building a full wireless network. Meanwhile, established
and flanker brand competition remained intense in the post-
paid segment. The number of distribution channels and
competitive offers grew rapidly as new entrants aggressively
bid for new subscribers and incumbents battled for profit-
able growth.
TELUS thrived in this competitive market with our Clear
& Simple customer approach, by leveraging Canada’s fastest*
coast-to-coast 4G network and by offering a compelling
selection of smartphones.
At TELUS, wireless revenue growth accelerated to nine
per cent in 2011 due to an increase in subscriber net additions,
an improved trend in ARPU and higher equipment revenues
due to increased sales of more expensive smartphone devices.
The wireless EBITDA (earnings before interest, taxes, depre-
ciation and amortization) margin remained stable in the
40 per cent area.
2012 TARGETS – WIRELESS1
(share of TELUS consolidated)
1 See Caution regarding forward-looking statements on page 38 of this report.
revenue (external)
$5.75 to $5.9 billion
EBITDA
$2.3 to $2.4 billion
54%
share
60%
share