The following discussion is qualified in its entirety by the Forward-looking
statements at the beginning of Management's discussion and analysis.
It is also qualified by Section 10: Risks and risk management.
Management sets new corporate priorities each year to advance
TELUS' strategy, focus on the near-term opportunities and challenges
and create value for shareholders.
3.1 Corporate priorities for 2006 - reporting back
Management developed new corporate priorities for 2006 to
advance its industry-leading strategy, achieve meaningful commercial
differentiation in the markets, capitalize on the technology convergence
of wireless and wireline, and drive continued operating efficiency
and effectiveness.
2006 corporate priorities across wireline and wireless |
Advance TELUS' leadership in the consumer market
- TELUS expanded wireless high-speed (EVDO) service to two-thirds of the Canadian population. Combined with the newest portable communications
devices, TELUS is delivering innovative mobile data and entertainment solutions.
- TELUS introduced SPARK, a new name for its portfolio of mobile entertainment, information and messaging services for consumers.
These services include TELUS Mobile Music, TELUS Mobile Radio, TELUS Mobile TV and Apnes Des, a South Asian entertainment service
featuring video, news and sports.
- To reaffirm the Company's commitment to excellent customer service, TELUS launched three Future Friendly® Promises to mobile clients:
a dependable network, fast client service and new phone offers. The success of this program is evident by TELUS' churn rates that are among
the lowest in North America.
- A three-year, $600 million investment program to enhance TELUS' broadband network in B.C., Alberta and Eastern Quebec was announced,
paving the way for emerging services such as high-definition TELUS TV.
- TELUS TV services were rolled into select neighbourhoods in the Lower Mainland of B.C., delivering 100% digital TV to consumers. In addition,
employee trials of TELUS TV service began in Eastern Quebec.
- Compelling high-speed Internet (ADSL) promotions helped TELUS achieve 153,700 net additions of Internet subscribers in 2006, which outpaced
a major cable-TV competitor.
- TELUS implemented community-focused general manager positions across B.C., Alberta and Quebec to improve consumer and business
service delivery.
- ADSL service was expanded to 117 rural neighbourhoods in Quebec in preparation for the 2007 consumer launch of TELUS TV and continued
growth in TELUS' share of the Quebec market.
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Advance TELUS' position in the business market
- A five-year, $140 million contract was won with the Government of Ontario to provide fully managed network access services.
- Several other multi-million dollar contracts were also secured, including those with Alberta Treasury Branches (ATB) Financial, Consumer Impact
Marketing and Finning International.
- The business brand "Backed by TELUS" was launched and innovative solutions were introduced, including the TELUS Business One® bundle,
TELUS SafetyNet&trade service, Wireless Physician, Integrated Bedside Terminal, Crisis Management Conferencing and Wireless Field Ticketing.
In addition, the portfolio of wireless solutions was expanded, including wireless high-speed services, Push To Talk service and GPS solutions.
- TELUS strengthened its capabilities by acquiring Assurent Secure Technologies, a world-leading Canadian information technology security
services company. TELUS' AssureLogic security solution received a globally recognized certification.
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Advance TELUS position in the wholesale market
- TELUS was recognized for the fourth time by The Paisley Group as a leader in directory assistance services, and was named number one in
Canada and number two in the U.S.
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Drive improvements in productivity and service excellence
- TELUS successfully launched a pilot conversion for a sample set of more than 20,000 Alberta customers, as part of a major billing system
consolidation project.
- In major centres in B.C. and Alberta, TELUS increased the proportion of installation and repair appointments offered to customers on a two-hour
or four-hour window basis.
- More than 1,200 field technicians were trained to promote and provide additional services during installation and repair visits, as part of the TELUS
Solutions Program, generating additional sales.
- TELUS opened a new centre of excellence in Montreal to align tier 1 and tier 2 technical support operations for small business, and to consolidate
call centre entry points from four to one, providing quicker resolution of issues and bilingual support.
- TELUS aligned the human resources, finance, logistics and
d'Affaires and the eastern operations of TELUS Mobility.
- TELUS launched "Habitat," an integrated, bilingual portal for all team members across Canada.
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Strengthen the spirit of the TELUS team and brand, and develop the best talent in the global communications industry
- Through periodic electronic surveys of employees, known as pulse check, TELUS obtains crucial feedback about the business. In the latest
survey, notable improvements were measured in team member engagement, pride and outlook for the future.
- On September 30, more than 5,000 TELUS team members, alumni and family across Canada volunteered their time and energy to 1,400 volunteer
projects and activities as part of the TELUS National Day of Service.
- TELUS, its team members and retirees pledged $5.5 million in the 2006 Dollars for Dollars campaign, which will be distributed in 2007
to Canadian charities.
- In 2006, TELUS held more than 150 external recruiting events to attract talented new team members to the Company at all levels across
many disciplines. The events included job fairs, information sessions, academic sponsorships and innovative canvassing efforts.
- TELUS' brand was showcased through hosting of events such as the TELUS Skins and TELUS World Ski and Snowboard Festival.
- For the third consecutive year, TELUS was awarded a Thomson Illuminati award for worldwide excellence in employee learning programs
and practices.
- The Company launched the TELUS Community Ambassadors™ program giving support to team members and alumni for programs such as
those that supply backpacks of school supplies to children in need.
- The Company now has seven fully functional TELUS Community Boards, which include external community leaders who help direct annual
donations of $3.5 million to worthwhile causes in seven cities across Canada.
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3.2 Corporate priorities for 2007
Each year, TELUS identifies key corporate priorities that support its national growth strategy and create value for investors.
2007 corporate priorities |
1. Advancing TELUS' leadership position in the consumer market
- Combining TELUS' suite of data applications with deregulated heritage services
- Attaining best-in-class customer loyalty and growth through unparalleled customer experiences
- Achieving customer addition targets by expanding distribution channels and addressing key market segments with new service offerings.
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2. Advancing TELUS' leadership position in the business market
- Progressing further in key industry verticals with specific applications that provide non-price-based differentiation
- Leveraging wireless number portability to expand TELUS' business market share in Central Canada
- Focusing on small business customer loyalty and growth with innovative solutions.
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3. Advancing TELUS' leadership position in the wholesale market
- Growing in domestic and international markets through recognition that TELUS is Canada's IP leader
- Achieving excellence in customer service to support local forbearance in key incumbent markets
- Expanding the Company's markets, channels and products by focusing on strategic relationships with TELUS' partners.
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4. Driving TELUS' technology evolution and improvements in productivity and service excellence
- Implementing technology roadmaps for Future Friendly Home and wireless service offerings that simplify TELUS' product portfolio and improve
service development and execution
- Rolling out consolidated customer care systems to replace multiple legacy systems in Alberta and B.C.
- Accelerating customer service delivery dates.
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5. Strengthening the spirit of the TELUS team and brand, and developing the best talent in the global communications industry
- Growing TELUS' business ownership culture with a team philosophy of "our business, our customers, our team, my responsibility" thereby attracting,
developing and retaining great talent
- Leading the way in corporate social responsibility as TELUS strives to be Canada's premier corporate citizen.
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