TELUS
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TELUS 2000 annual report
Frequently Asked Questions

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What is TELUS' strategy to offer 3G wireless services?

> Third Generation (3G) describes next generation wireless technology that is expected to be CDMA-based and offer high-speed packet data mobile wireless Internet access and multimedia communications. Globally 3G services largely remain in the development phase and, in Canada, additional spectrum for 3G is not expected to be allocated until the 2003 to 2004 time frame.

TELUS Mobility currently offers 2G services on a digital CDMA technology platform which offers circuit data speeds of up to 14.4 kbps. While first Generation refers to analogue cellular, developed prior to 2G digital, 2.5G refers to the first implementation of packet data capability on existing digital networks, or the migration step from 2G to 3G. 3G has become synonymous with packet data rates of a minimum of 384 kbps on a mobile basis and 2.048 mbps on a fixed basis.

TELUS Mobility's ESMR Mike product, based on an iDEN technology platform supplied by Motorola, already operates on a packet data network which offers shared data speeds of up to 19.2 kbps. On its CDMA2000 based, PCS network, TELUS Mobility is in the process of implementing the first step in the CDMA2000 3G evolution path. This is known as 1XRTT which is expected to offer packet data speeds of up to 144 kbps and offer nearly double the voice capacity of its current IS-95 CDMA based systems. This service offering is dependent on the commercial availability of 1XRTT handsets. While uncertain, this is anticipated in late 2001 or early 2002.

Over 56% of TELUS Mobility's digital subscriber base is equipped with browser capable handsets. During the course of 2000, TELUS Mobility introduced wireless Internet services and continues to broaden their scope. TELUS Mobility currently offers subscribers a rich variety of wireless Internet services, such as two-way e-mail, directories, news and information services, stock quotes, and banking and financial transaction related services. While 3G is expected to enhance the range of services that we will be able to offer, such as high-speed, multimedia applications, it has not been necessary to wait for the development of 3G to begin offering a multitude of value-added Internet services. To date, TELUS Mobility's offering has been met by strong consumer response.

In addition to this solid springboard from which to introduce next generation wireless services, TELUS Mobility has already been installing base stations which adhere to the CDMA2000 3G evolution path. TELUS Mobility expects to have its switching and Internet related CDMA infrastructure upgraded by the end of 2001, and also anticipates its cell site CDMA infrastructure to be substantially 1XRTT capable by year-end.

TELUS Mobility is following a three-pronged strategy to ensure a smooth migration from 2.5G to 3G. Technology teams are very actively involved in the planning and implementation stages of this migration. We are currently working with each of our primary infrastructure vendors, Lucent, Motorola and Nortel, as well as our handset vendors, such as Motorola, Nokia, Samsung, and Sanyo, among others. TELUS Mobility also participates in various industry groups, namely the CDG (CDMA Development Group), 3GPP2 (3G Partnership Project) and the OHG (Operators' Harmonization Group). In addition, we also take advantage of industry relationships to work with other carriers, such as Verizon and Nextel, to better understand their roadmaps to 3G.

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