Annual report - About TELUS

TELUS Mobility’s distribution networks are being combined, allowing us to leverage TELUS’ vast
Western Canada distribution channels, Clearnet’s broad national retail and dealer presence and
QuébecTel Mobilité’s dealer network in Eastern Québec while reallocating resources to further
develop our channels in new markets nationwide.
TELUS Mobility operations across Canada have begun to operate under the strong TELUS brand
name, while incorporating the best elements of Clearnet’s renowned national advertising efforts.
Well-known Clearnet products, such as Mike and Pay & Talk prepaid, are being retained nationally.
TELUS Mobility operated a CDMA network with Nortel infrastructure in Alberta and British Columbia,
while Clearnet’s national CDMA network operated on Lucent equipment. These networks are being
rationalized, with TELUS Mobility’s network supported by Nortel in Alberta and B.C., and Lucent
infrastructure in the rest of Canada. This allows redeployment of Lucent equipment for, among
other possibilities, the buildout of new markets outside Alberta and B.C. We are also investing
in a significant expansion over the next 18 months to approximately match our digital footprint
in Alberta and B.C. with that of our extensive analogue cellular network in those provinces.
Prior to the acquisition of Clearnet, TELUS Mobility customers roamed on the Bell Wireless
Alliance’s networks outside of Alberta and B.C., while Clearnet customers roamed, in non-digital
areas of Canada, onto the Rogers AT&T Wireless analogue network. We expect to complete the
migration of TELUS Mobility customers in Ontario and Québec onto our digital network in the first
half of 2001, and to migrate most digital TELUS Mobility customers to our networks to displace
analogue roaming shortly thereafter. We expect significant cost savings in reduced roaming and
back-haul expenses. In future, we intend that Verizon Wireless will be TELUS Mobility’s principal
U.S. roaming partner on PCS and cellular, potentially lowering U.S. roaming costs, improving the
competitiveness of roaming packages and increasing in-bound roaming revenue. Nextel will
remain TELUS Mobility’s U.S. roaming partner for Mike service.
> Maintaining our Leading Spectrum Position
After year-end, TELUS successfully acquired all five of the 10 MHz regional licenses on which it
actively bid in Industry Canada’s PCS spectrum auction. TELUS bids were approximately $356 million
for licenses in Southern Ontario (including Toronto), Southern Québec (including Montréal),
Eastern Ontario (including Ottawa), Nova Scotia/Prince Edward Island and Manitoba, with a total
population of 17.4 million (based on 1996 statistics). These were the largest markets that TELUS
Mobility was eligible to bid for, given the regulatory limitation of the 55 MHz spectrum cap, and
were acquired at attractive valuations, particularly relative to prices paid in recently completed
U.S. spectrum auctions. We now have approximately 55 MHz of spectrum in all Canada’s major
urban areas and have maintained our national spectrum leadership position.
The winning bidders in the PCS spectrum auction were mainly incumbents, effectively maintaining
an up-to-four-player industry. With the competitive environment maintained, TELUS Mobility can
be aggressive in expanding our national digital coverage and investing in our leading wireless
Internet services and technology.
> Building on our Strong Growth
In 2000, TELUS Mobility1 added 474,000 subscribers, bringing our total customer base to
2,156,200, a 20 per cent increase in net additions and a 27 per cent increase in our total
one team > one brand > one strategy
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