Telus 2014 Annual Report Download - page 4

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roaming rules; and the non-harmonization of provincial consumer protection
legislation, particularly in light of the new CRTC mandatory national Wireless Code
(the Code), which came into effect on December 2, 2013, and possible operational
challenges from the Code, resulting from two-year and three-year customer contracts
ending coterminously in 2015.
 Technological substitution including: reduced utilization and increased
commoditization of traditional wireline voice local and long distance services from
impacts of OTT applications and wireless substitution, and overall slower subscriber
growth in the wireline segment; increasing numbers of households that have only
wireless and/or Internet-based telephone services; continuation of wireless voice
ARPU declines through, among others, substitution to messaging and OTT
applications, such as Skype; substitution to Wi-Fi services from wireless services;
and OTT Internet Protocol (IP) services that may displace TV and entertainment
services or impact revenue.
 Technology including: subscriber demand for data that challenges wireless networks
and spectrum capacity levels; our reliance on legacy systems and information
technology; technology options, evolution paths and roll-out plans for wireline and
wireless networks (including broadband initiatives, such as fibre to the home, and
wireless small-cell deployment); our reliance on wireless network access
agreements; choice of suppliers and suppliers’ ability to maintain and service their
product lines; wireless handset supplier concentration and market power; the
performance of long-term evolution (LTE) wireless technology; our long-term need
for additional spectrum capacity through future spectrum auctions and from third
parties to address increasing demand for data; deployment and operation of new
wireless networks and success of new products, new services and supporting
systems; network reliability and change management (including migration risks,
related to technology and customer retention, to new, more efficient Internet data
centres (IDCs) and realizing the expected benefits); timing of decommissioning of
certain legacy wireline networks, systems and services to reduce operating costs;
timing of decommissioning of CDMA and iDEN wireless networks to redeploy
spectrum and reduce operating costs, and the associated subscriber migration costs
and customer retention risks; availability of resources and ability to build out
adequate broadband capacity; and success of upgrades and evolution of TELUS
TV® technology, which depend on third-party suppliers.
 Economic growth and fluctuations including: the strength and persistence of
economic growth in Canada that may be influenced by economic developments
outside of Canada; future interest rates; inflation; impacts from declining oil prices;
pension investment returns, funding and discount rates; and Canada: U.S. dollar
exchange rates.
 Capital expenditure levels and potential outlays for spectrum licences in spectrum
auctions or from third parties, due to our wireless deployment of LTE spectrum
acquired and future technologies, wireline broadband initiatives, investments in
network resiliency and reliability, subscriber demand for data, new IDC initiatives,
and the Industry Canada wireless spectrum auctions for 2.5 GHz (2500 - 2690MHz)
bands, currently expected in April 2015.
 Financing and debt requirements including ability to carry out refinancing activities.
 Ability to sustain dividend growth program of circa 10% per annum through 2016 and
ability to sustain and complete multi-year share purchase program through 2016.
These programs may be affected by factors such as regulatory decisions and