Scarborough, ON - TELUS Mobility, the national wireless telecommunications business unit of TELUS Corporation ("TELUS," TSE: T, T.A; NYSE: TU), today announced second-quarter wireless subscriber results:
(1) Pro forma numbers reflect combined historical results for TELUS Mobility, Clearnet Communications Inc. and QuébecTel Mobilité for the full quarter. TELUS acquired Clearnet and QuébecTel in October and June, 2000 respectively. All results for TELUS Mobility in this news release are pro forma to reflect these acquisitions.
(2) Subscriber and churn results for 2000 have been adjusted to reflect definitional alignment between TELUS Mobility (pre-acquisitions), Clearnet and QuébecTel.
"Our second-quarter subscriber results represent a 24% increase in our client base over the past year," said George Cope, President and Chief Executive Officer of TELUS Mobility. "Despite intense competitive pressure during the second quarter, TELUS Mobility continues to pursue a strategy focused on pricing discipline, which has consistently allowed us to lead the industry in average revenue per unit (ARPU), revenue and revenue growth. Notably, TELUS Mobility was the only major Canadian wireless operator that did not offer free phones or free airtime promotions during the quarter. It is our intention to continue to enhance shareholder value through a clear strategy focused on revenue and EBITDA growth. Subscriber results for the first half of the year are consistent with our previously stated target of 500,000 net additions in 2001."
Total net subscriber additions for the three months ended June 30, 2001 were 75,400, bringing TELUS Mobility's total client base to 2,332,300. This represents a 24% increase compared to the 1,886,800 at June 30, 2000. Digital clients made up 63% of TELUS Mobility's total client base at June 30, 2001, compared to 49% (pro forma) one year earlier.
Postpaid net additions for the three months ended June 30, 2001 were 34,400, bringing TELUS Mobility's total postpaid client base to 2,040,000. The second-quarter 2001 postpaid net subscriber additions compared to 107,300 postpaid net additions for the same quarter one year earlier. This reflects the impact of competitive offerings in the marketplace as well as the continuing popularity of TELUS Mobility's national Pay & Talk prepaid service. Postpaid gross additions in the second quarter of 2001 represented 74% of total gross additions during the quarter, up from 70% in the first quarter of 2001. The 2,040,000 postpaid clients at June 30, 2001 represented a 13% increase in the total number of postpaid subscribers, from 1,807,100 at June 30, 2000.
Prepaid net additions for the three months ended June 30, 2001 were 41,000, bringing TELUS Mobility's total prepaid client base to 292,300. The second-quarter 2001 prepaid net subscriber additions compare very favourably to minimal negative net additions reported for the same quarter one year earlier. This reflects the fact that the digital Pay & Talk prepaid offering was not introduced until the third quarter of 2000. Prepaid gross additions in the second quarter of 2001 represented 26% of gross additions during the quarter, as compared to 30% in the first quarter of 2001. The 292,300 prepaid clients at June 30, 2001 represented a 267% increase in the total number of prepaid clients, compared to the 79,700 at June 30, 2000.
Monthly churn for the three months ended June 30, 2001 was 2.02%, a decline as compared to 2.13% in the same period one year ago.
The subscriber results disclosed in this release are subject to possible adjustment per TELUS' normal period-end review and annual audit process. TELUS expects to announce complete second-quarter results on July 26, 2001.
TELUS Mobility provides a full suite of wireless services to more than two million clients across Canada. For more information, please visit us at www.telusmobility.com.
TELUS Corporation (TSE: T, T.A; NYSE: TU) is one of Canada's leading telecommunications companies, providing a full range of telecommunications products and services that connect Canadians to the world. The company is the leading service provider in Western Canada and provides data, Internet Protocol, voice and wireless services to Central and Eastern Canada.
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|Forward Looking Disclosure Disclaimer:|
This news release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. TELUS' actual results could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. Factors that could cause actual results to differ materially include but are not limited to: general business and economic conditions in Canada and in TELUS service territories; competition in wireline and wireless services, including voice, data and Internet services, and within the Canadian telecommunications industry generally; corporate restructurings and successful integration of wireless operations; adverse regulatory action; taxation; collective agreement negotiations; technological advances; the effect of health and safety concerns and other risk factors described in TELUS' comprehensive public disclosure documents, including the Annual Information Form for 2000, and in other filings with securities commissions in Canada and the United States.
TELUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Value-based pricing model sets stage for new transactional services
Scarborough, Ontario - TELUS Mobility today became the first Canadian wireless carrier to introduce Pay Per Use wireless Web access, allowing clients to customize and control their wireless Web experience while giving TELUS Mobility and its online content partners the ability to build both new revenue and new transactional wireless services. "Value-based Pay Per Use makes the standard airtime billing model used by most wireless carriers obsolete," said Robert Blumenthal, TELUS Mobility's vice president, wireless Internet services.
"Pay Per Use gives our Pocket Web clients control over their Web usage and access to an ongoing stream of new premium services. Our online content partners benefit from the flexibility of the system and the new revenue-sharing options we offer for their best services. And we benefit not only from the higher usage volumes and revenues predicted for these premium services, but from having the technological foundation laid for a new world of transaction-based m-commerce services." With Pay Per Use, TELUS Mobility clients pay a set cost for the value-added Pocket Web services they select. With the airtime model used by competitors, costs for services such as games and directories can vary greatly with access speed and search times, meaning users are often perplexed by the Web access charges that appear on their monthly bills.
TELUS Mobility Pocket Web clients will be charged for premium services such as Pocket Play, which already features more than 50 games; Pocket 411 telephone directories; and Pocket Map mapping and direction services. Each client will be able to access several premium Pocket Web sessions per month at no extra charge, and all Pocket Web plans also allow unlimited access to a wide selection of TELUS Mobility's more than 80 online content partners. Bill to Phone Mobile Commerce TELUS Mobility has integrated Portal Software Inc.'s (Nasdaq: PRSF) Infranet billing platform with its existing billing systems, allowing the company to accurately charge for premium service usage per use, or event, based on predefined and customized pricing negotiated with its online content partners. The sophisticated Infranet engine rates each event, such as a multi-player online game or a reverse number lookup, to determine the price of the content and bill appropriately.
The Pay Per Use billing model is a major step toward the "bill to phone" concept, which will allow clients to purchase goods or services using their wireless phones and have the cost appear as an item on their monthly invoices. Unlike the wired Internet, which has no built-in or established means of billing subscribers for specific services they use, wireless carriers are able to charge individual purchases to client accounts. This type of transactional billing means clients will be able to buy a service or product at a set, pre-determined price and have the charges itemized on their regular invoices. "Imagine ordering a hot dog at the ball game right from your seat, paying for public parking without hunting for the lot attendant or buying a movie ticket without lining up, then seeing those charges neatly itemized on your monthly bill. In our mobile society, the applications for bill to phone are virtually limitless," said Blumenthal, who adds that TELUS Mobility will offer bill to phone services in 2002.
About TELUS Mobility
TELUS Mobility, combining the national wireless operations of Clearnet, QuébecTel Mobilité and TELUS, provides a full suite of wireless services to more than two million clients across Canada. For more information, please visit us at www.telusmobility.com. TELUS Corporation (TSE: T, T.A; NYSE: TU) is one of Canada's leading telecommunications companies providing a full range of telecommunications products and services that connect Canadians to the world. The company is the leading service provider in Western Canada and provides data, Internet Protocol, voice and wireless services to Central and Eastern Canada. For more information about TELUS, visit www.telus.com
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