CEO letter to investors

Dear fellow investor

For TELUS, 2005 was a remarkable year – a year when we delivered on our strategic priorities and met our operational and financial goals whilst overcoming the challenge of a four month labour disruption. Now, with a strong business and financial foundation, a united team in place and a growing portfolio of innovative solutions, we are staying ahead of our competition for the benefit of our shareholders, customers and team members. Please permit me to explain how.

Darren Entwistle

Member of the TELUS Team

One team, one brand, one strategy

In 2005, TELUS made significant progress in its drive to improve its position as a national provider of integrated telecommunications solutions. For more than five years, we have remained true to our growth strategy and maintained a steadfast focus on data, Internet protocol (IP) and wireless services. Indeed, there is little doubt that our ability to relentlessly pursue this objective has resulted in TELUS maintaining a leadership position in the global telecommunications industry.

TELUS' six strategic imperatives, in place since the year 2000, continue to guide our actions. These are as follows:

Building national capabilities across data, IP, voice and wireless
Providing integrated solutions that differentiate TELUS from our competitors
Partnering, acquiring and divesting to accelerate the implementation of our strategy and focus our resources on core business
Focusing relentlessly on growth markets of data, IP and wireless
Going to market as one team, under a common brand, executing a single strategy
Investing in internal capabilities to build a high-performance culture and efficient operation.

A significant advancement of this strategy is the recent merger of our wireless and wireline operations into a single operating structure. Effectively integrating these operations in 2006 will better differentiate TELUS in the marketplace and enable us to deliver innovative communications solutions, under one brand and defined by a common strategy. The integration improves our economies of scale and combines the talents, innovation and infrastructure of our wireless and wireline businesses to improve the effectiveness of TELUS’ business operations in the market. Moreover, TELUS is now strongly positioned to leverage the ongoing convergence of wireline and wireless technology.

Another important objective was achieved in November with the realization of a new five-year collective agreement with unionized team members primarily based in Western Canada. This landmark agreement reflects the competitive industry in which we operate and establishes a new era for TELUS. It also delivers unprecedented opportunities to materially enhance TELUS’ productivity, flexibility and competitiveness. Moreover, this progressive agreement recognizes the importance we place on our most valuable assets – our team members – by providing best-in-class remuneration, employment security and career development opportunities. Our entire team – more than 29,000 strong – can now fully focus on effectively serving our customers and continuing to grow value for our shareholders.