Telus 2015 Annual Report Download - page 19

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review their current action plans and prioritize their ongoing actions. In 2015, our
employee engagement score increased by two percentage points to 87%, elevating our
high-performance culture and realizing world-leading engagement results for the third
year in a row. Significant improvements in employee engagement have helped us focus
on putting customers first.
In addition, we incur incremental, non-recurring restructuring and other costs with the
objectives of improving our operating efficiency and effectiveness and addressing the
ongoing decline in profitability in certain areas of our business. In 2015, our restructuring
and other costs totalled $226 million, increasing from $75 million in 2014, mainly
reflecting our initiative to reduce approximately 1,500 net full-time positions over several
quarters beginning in the fourth quarter of 2015, as well as the closure of Black’s
Photography retail stores and real estate rationalization.
For additional details on 2015 developments and other events or conditions that
influenced our general development, see Section 2.2 Strategic imperatives, as well as
progress on our corporate priorities in Section 3 Corporate priorities – 2016 corporate
priorities and progress on 2015 corporate priorities in the 2015 annual MD&A. For a
discussion of changes in our business expected in 2016, see Section 9 General trends,
outlook and assumptions in the 2015 annual MD&A.
For a review of the events and conditions that influenced our general development
during 2013 and 2014, and how our business developed over those two years, see each
of the 2013 and 2014 annual Management’s Discussion and Analysis, Section 1.2 The
environment in which we operate, Section 2.2 Strategic imperatives, as well as progress
on our corporate priorities for the relevant year in Section 3 Key performance drivers
(2013) and Section 3 Corporate priorities for 2015 and progress on 2014 corporate
priorities (2014).
COMPETITION
In 2015, the wireless industry continued to adjust to the highly competitive and capital
intensive landscape in Canada. The small independent new entrants have been or are in
the process of being consolidated. Mobilicity was acquired by Rogers Communications
in June. In January 2016, cable-TV provider Shaw Communications Inc. announced it
will sell its wholly owned broadcasting subsidiary, Shaw Media Inc., to Corus
Entertainment for $2.65 billion. Moreover, on March 1, 2016, Shaw Communications Inc.
announced the completion of its acquisition of Wind Mobile Corp. for $1.6 billion,
previously announced in December 2015. Videotron continues to operate as a wireless
new entrant in Quebec, and Eastlink continues to operate as a wireless new entrant in
Atlantic Canada. These cable-TV-based wireless providers, in addition to provincial
carriers in Manitoba and Saskatchewan, represent a fourth carrier in all major markets.
We expect continued strong competition in the wireline and wireless businesses in all
principal markets and geographic areas.
See Section 4.1 Principal markets addressed and competition in the 2015 annual MD&A
for a summary of the competitive environment in each of our principal markets and
geographic areas. Also refer to Section 10.2 Competition for further details on the risks
associated with our competitive environment and Section 9 General trends, outlook and
assumptions in the 2015 annual MD&A for an assessment of our competitive position as
it relates to the telecommunications industry generally and specifically as it relates to the
wireless and wireline industries.