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TELUS |
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FAQ number: 1 2 3 4 5 6 7 8 9 Does TELUS foresee the ability to reduce its level of future capital expenditures? Yes, capital expenditures in 2002 are planned to be about $2.1 to $2.2 billion which is a decrease of more than 15% from 2001. This reduction is due to reduced wireless investment as well as a non-recurring $356 million purchase of wireless spectrum in 2001. We also expect to continue to experience a declining level of capital expenditures in subsequent years for reasons explained below. A significant portion of capital expenditures in the years 2001 and 2002 are related to investment in non-ILEC expansion in Ontario and Quebec as well as in high-speed ADSL Internet service in incumbent regions. These growth related investments masked the fact that capital expenditures in our traditional incumbent wireline business actually decreased in 2001. As we near the end of our initial ADSL and non-ILEC network expansion build-outs, it is expected that capital expenditures related to these initiatives will significantly reduce and become more success based in relation to future capacity requirements to satisfy demand. In 2001 we extended and enhanced our roaming and resale agreements with Bell Mobility and its affiliates, and Aliant Telecom Wireless. To be implemented in mid-2002, these new arrangements are expected to allow TELUS to extend its digital CDMA wireless coverage and addressable market to areas of Canada containing over seven million people without incurring significant capital outlays. As a result, we expect to avoid wireless capital expenditures of approximately $800 million over the next several years that otherwise would result from building out network coverage to these regions. |
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