Annual report - About TELUS

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Qyour high-speed Internet services in Western Canada? A Why have you committed up to $500 million of capital over five years to expand QVerizon and Genuity? A How does TELUS intend to take advantage of its strategic relationships with one team > one brand > one strategy > 36 > The future of telecommunications is tied to the Internet and as demand grows and costs fall, it should soon be a profitable business. The demand for high-speed Internet from the consumer and small business markets in Alberta and British Columbia is expected to grow 45% in 2001. Over the next three years, the growth is expected to average 30%. In fact, current demand is higher than what we can supply. Providing ADSL technology to a customer is a considerable undertaking. In order for a customer to be eligible for ADSL service, the customer’s home or business must be within three to four kilometres of a Central Office that has ADSL data equipment installed. In addition, the cable connection between the Central Office and the customer must be capable of carrying ADSL. If not, additional time and equipment is necessary to make it suitable. If a customer lives more than three to four kilometers from a Central Office, a new ADSL equipment location must be created closer to the customer. With an initial investment in 2001 of $190 million, over the next five years, TELUS will expand its coverage by building capable facilities in 38 major communities in Alberta and B.C. This will provide over 95% of all homes and businesses in these communities, and at least 70% of the entire population in British Columbia and Alberta, access to TELUS high-speed Internet service. This aggressive high-speed Internet rollout plan is a cornerstone of TELUS’ Internet, data, and wirelessfocused strategy. > In the global telecommunications industry that is accelerating in terms of technologies and competition, it is not feasible to own or build all capabilities. Partnerships and alliances are more important than ever. Verizon and Genuity are among the world leaders in their area of telecommunications expertise. ° Verizon is one of the world’s leading providers of high-growth communications services, serving the equivalent of 95 million access lines and 25 million wireless subscribers. ° Genuity, created by a spin-off the GTE’s Internet backbone operations (formerly BBN) and related data business, is a leading tier-one Internet infrastructure service provider. Not only do we benefit from significant buying power savings from Verizon (in 2000, over $40 million of savings were realized), but also as strategic partners, we are preferred suppliers with Verizon/ Genuity in each other’s territories. The relationships, managed at a strategic level, mean that TELUS and Verizon/Genuity will cooperate to exploit the provision of integrated, seamless, and coordinated telecommunications services to customers across North America and globally. During 2001, we will continue working with our partners to align products and services. As well, we are integrating network and infrastructure elements to carry these services, and we are aligning the operational structures necessary to sell, deliver, support and bill them.
Some examples include: ° The TELUS cross-Canada fibre network system, operational in early 2001, will offer our customers high-speed transport services, delivering products such as SONET, ATM, and IP services. This network connects to the Genuity fibre network in two locations. ° Web/data hosting centres, supported by the in-house expertise of Genuity. ° Joint customer bids on North American cross-border sales opportunities. Qmanagement changes taking place at TELUS? A How has the investment community reacted to the strategic, structural and > The reaction of the investment community can be measured in several ways, including investor buying and selling activity and through investment analyst commentary. We have experienced a large increase in share trading volumes and have identified a strong trend of buying by growth oriented institutional investors in reaction to the clear articulation of a growth strategy. As expected, we have seen selling by certain income oriented institutional investors. The vast majority of investment analysts have been supportive of the strategic, structural and management changes taking place. Listed below are some selected commentaries. “We maintain our original thesis that investors will be rewarded by TELUS’ aggressive plans to expand out-of-region into the high-growth data and IP sector...” Robert Goff, Credit Suisse First Boston “We believe that TELUS’ new focus on Internet access service and data applications, in addition to its emerging national platform, positions it well to capture its fair share of growth in the Canadian telecom market.” Suzanne Stein, Goldman Sachs* “TELUS is the best positioned national group – TELUS is the only company that has national capability combined with a national wireless platform and a broad customer base. It plans to exploit these capabilities plus convergence of services to attack the fragmented competition.” Nick Strube, Canaccord Capital “Leadership and depth in management is key and we feel that TELUS has both.” Jeremy Burge, TD Newcrest *TELUS Industry report dated December 13, 2000 © 2001 Goldman, Sachs & Co. All rights reserved. > 37 < FAQs
Page 1 and 2: “TELUS is on track to lead the Ca
Page 3 and 4: We have a track record of achieving
Page 5 and 6: CASH FLOW 4 ($ millions) 1,487 96 1
Page 7 and 8: Darren Entwistle President & CEO Si
Page 9 and 10: We have restructured the Company to
Page 11 and 12: ° We began running our first telev
Page 13 and 14: fresh experience and perspective; a
Page 15 and 16: 11 1 6 12 7 2 3 13 14 15 8 9 10 4 5
Page 17 and 18: Starting January 2001, we changed o
Page 19 and 20: 25% > targets 12% 33% > targets 75%
Page 21 and 22: Creating the New TELUS Mobility Bui
Page 23 and 24: subscriber base compared to 1999. T
Page 25 and 26: Developing an Unbeatable Integrated
Page 27 and 28: Internet, we bridge the gap and hel
Page 29 and 30: Building Sustainable Relationships
Page 31 and 32: TELUS Québec is continuing to targ
Page 33 and 34: We’re developing and marketing wh
Page 35 and 36: The acquisition of Clearnet allowed
Page 37: TELUS Mobility is following a three
Page 41 and 42: Three Months Ended (millions) 2000
Page 43 and 44: segmented statistics TELUS Consolid
Page 45 and 46: ° Acquired 70% of QuébecTel for $
Page 47 and 48: TELUS Mobility Expenses TELUS Mobil
Page 49 and 50: 2.14 Cash EPS, normalized to exclud
Page 51 and 52: LIQUIDITY AND CAPITAL RESOURCE RATI
Page 53 and 54: 400 communities over the next 10 ye
Page 55 and 56: OUTLOOK 2001 Telecommunications Ind
Page 57 and 58: RISKS AND UNCERTAINTIES The followi
Page 59 and 60: prices. Accordingly, there can be n
Page 61 and 62: In 2002, the calculation of the con
Page 63 and 64: management’s report Management is
Page 65 and 66: consolidated balance sheet As At De
Page 67 and 68: notes to consolidated financial sta
Page 69 and 70: (g) Income Taxes The Company and it
Page 71 and 72: ° On August 17, 2000, the Company
Page 73 and 74: 10. CAPITAL ASSETS, NET Accumulated
Page 75 and 76: (millions) Series Rate Maturity 200
Page 77 and 78: Upon a change of control as defined
Page 79 and 80: (d) Stock Option Plans The Company
Page 81 and 82: 15. COMMITMENTS AND CONTINGENT LIAB
Page 83 and 84: The Company’s net benefit plan ex
Page 85 and 86: The following is a reconciliation o
Page 87 and 88: (c) Depreciation Under the purchase
Page 89 and 90:
Recently Issued Accounting Standard
Page 91 and 92:
Daniel Delaloye > Executive Vice-Pr
Page 93 and 94:
usiness enablement Patricia Bowles
Page 95 and 96:
3G: Third Generation, describes nex
Page 97 and 98:
Stock Exchanges and Trading Symbols
Page 99 and 100:
Registered Shareholders 2000 1999 T
Page 101 and 102:
www.telus.com > about TELUS > Inves
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Annual report - About TELUS

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