growing with our customers

In 2006, the benefits of our integration and new business ownership culture became increasingly clear as our united team renewed its focus on our customers. For 2007, we are advancing TELUS' leadership position as a provider of integrated solutions that improve the competitiveness of business customers and enhance the lifestyle of consumers.

Growing together for businesses

In the business market, our delivery of leading solutions and superior end-to-end service is helping to differentiate TELUS. With a strong focus on key vertical markets, we are creating innovative solutions and demonstrating our capabilities to meet the needs of Canadian businesses.

• In the energy sector, we are providing a comprehensive range of communications and IT solutions that support the construction of oil sands operations, ensure the safety of oilfield workers and surrounding communities, improve efficiencies through integrated wireless field data collection, and track construction and transportation vehicles.
• In financial services, our managed IP network solution has become the communications model for large Canadian corporations, with an excellent track record for implementation.
• For government agencies, we are a partner of choice as we facilitate improved public services through IP technology. As an example, we recently won a five-year $140 million contract with the Government of Ontario to provide fully managed services for its entire network.
• In the healthcare industry, TELUS' technology is enabling healthcare providers to offer better access to care, enhance productivity and improve the patient care experience. Examples of our new offerings include Wireless Physician, an all-in-one wireless medical database for healthcare professionals, and Integrated Bedside Terminal, a solution that gives patients access to communication and entertainment services at their bedside while providing doctors with access to patient information.

For business customers on the go, the continued expansion of our wireless high-speed network (EVDO) opens the door to applications that provide greater productivity and efficiency. Our wireless high-speed network now serves approximately 50 regions in Canada, with roaming to 230 U.S. cities. Business customers can connect at job sites, customer locations or on the road to access corporate intranets, e-mail servers and other online services, all at download speeds similar to basic broadband Internet access.

Our portfolio of wireless solutions was expanded during 2006 with services such as Business Inbox, a secure two-way e-mail service that offers customers instant access to critical corporate information from their mobile devices. We were also the first to launch the Motorola Q device in Canada, which includes a slim QWERTY keyboard, trackwheel navigation, high-resolution screen and access to Business Inbox.

We introduced TELUS Business One, which combines voice and high-speed Internet with powerful IP-based tools customized exclusively for small business.

We also launched TELUS SafetyNet services, a comprehensive set of emergency response communications and technology services that help government, security personnel and other emergency responders communicate and co-ordinate their efforts during urgent situations.

Growing together for consumers

In March, we introduced SPARK, the new name for our portfolio of mobile entertainment, information and messaging services, and added a number of offerings throughout the year. Here are some of our new wireless data services that bring customers the information they want, right to their mobile phones:

• TELUS Mobile Radio, powered by XM Canada, is the first service to offer Canadians wireless access to streaming satellite radio programming.
• TELUS Mobile Music allows clients to choose from hundreds of thousands of tracks from the world's largest music labels. TELUS was the first wireless carrier in North America to offer clients a monthly subscription service for unlimited downloads, in addition to a pay-per-use service.
• TELUS Navigator and TELUS Kid Find are two easy-to-use services that help users navigate destinations or locate their children using interactive mobile phone maps.
• My Email provides customers with enhanced MSN Hotmail, enabling them to read, forward and reply to e-mails, as well as notifying them of new messages.

Our Future Friendly Promises were introduced in August, reaffirming to our clients our commitment to excellent customer service. The promises highlight our dependable networks, fast client service and cool new phones.

We invested $10 million to expand our 1X digital network coverage to additional communities across Quebec. Our national 1X digital wireless network now reaches approximately 92 per cent of the Canadian population. We also continued to expand our wireless high-speed network (EVDO) in 2006, giving twothirds of Canadians access to our extensive mobile data and entertainment solutions with broadband-like download speeds.

During 2006, our high-speed Internet customer base grew by 20 per cent, ending the year at 917,000 subscribers. To provide more choice and a better experience for customers, we introduced TELUS High-Speed Extreme Internet service, which offers download speeds of up to six megabits per second.

We announced a $600 million three-year investment to enhance our broadband network in B.C., Alberta and Eastern Quebec, to facilitate increased high-speed Internet sales and prepare for additional Future Friendly Home services such as high-definition TELUS TV. We also continued to roll out TELUS TV to select markets in Alberta and B.C., and added Pay Per View service to give customers access to a variety of sporting and entertainment events.