for our customers, today and tomorrow

A rapidly changing industry and evolving regulatory environment are opening the doors to new opportunities and bringing increased flexibility and competition to the market. At TELUS, we are maintaining our leadership position and continuing to invest in the future with innovative service offerings, fast and reliable networks, and systems that enhance customer care.

offering new solutions, for today and tomorrow

With wireline deregulation comes greater choice and more innovative offerings for our customers, and increased flexibility in launching new products and solutions, pricing and bundling options for TELUS. As an example, during the year we provided bundled services such as voice, long distance and high-speed Internet to customers through our new Home Connection plans.

Over the course of 2007, our high-speed Internet customer base grew by 11 per cent, ending the year at more than one million subscribers. We launched TELUS TV in select communities in Quebec, and continued our staged roll-out in neighbourhoods across Alberta and B.C. With additional network investments and the launch of high-definition TV service planned for 2008, we are on track to accelerate the roll-out of TELUS TV.

In 2007, we completed enhancements and expansion of our high-speed wireless data network, including higher-speed EVDO Rev A service. This network investment is driving new wireless solutions and resulted in significant wireless data revenue growth of 59 per cent in 2007. TELUS currently provides access for 80 per cent of the Canadian population to the fastest coast-to-coast high-speed wireless network in Canada.

EVDO Rev A offers typical upload speeds of approximately 300 to 400 kilobits per second with a maximum possible upload speed of 1.8 megabits per second. It also offers enhanced typical download speeds of approximately 450 to 800 kilobits per second to a maximum possible speed of 3.1 megabits per second. When travelling in the U.S., clients can roam onto EVDO networks in 242 metropolitan areas.

To complement the capabilities of our enhanced high-speed network, we offer an impressive line-up of mobile devices, many with rich multimedia benefits. We introduced the BlackBerry 8830 World Edition and BlackBerry Pearl 8130. TELUS' BlackBerry 8830 works on both CDMA (code division multiple access) and GSM (global system for mobile communication) networks, keeping global travellers connected to e-mail and voice services. Both devices are providing increased competitiveness for TELUS and driving increased consumer adoption of wireless data services.

helping businesses, today and tomorrow

We continued our focus on key business verticals to meet the growing needs of businesses. For example, TELUS won a $200 million, five-year contract with the Department of National Defence (DND) to provide and manage its global telecommunications network. TELUS will provide DND with managed telecommunications services, including voice, data, video and IP solutions, at its national and international locations.

The acquisition of Emergis for $743 million in January 2008, with the complementary addition of 1,100 team members heavily focused on healthcare transactions with many new customer relationships, will drive growth.

In the small business market, we achieved strong growth with TELUS Business One®, our portfolio of solutions tailored to the needs of small business customers. In 2007, we expanded the solutions available, which now include connectivity, security and a range of powerful IP-based tools customized for smaller businesses.

We advanced our thought leadership in delivering leading-edge solutions with the TELUS Innovation Experience, a business tool that enables customers to experience our communications technology solutions at their desktop. This online tool places customers in virtual scenarios in industry-specific settings, such as a hospital, oil camp or contact centre, so they can clearly see what solutions would work best for their business.

The TELUS Online Wireless Solutions Roadmap was launched in June to help businesses gain more from their wireless technology investments. This online assessment tool helps customers understand different ways to use wireless technology to enhance operations and benchmark their adoption, use and business value of the technology against their peers.

serving our customers, today and tomorrow

We implemented the consolidation of multiple order entry and billing systems into one unified customer care platform for one million residential customers in Alberta. While the critical billing functions performed well, we faced initial challenges and extra costs on the order entry side. The issues were resolved in 2007 and learnings from the Alberta implementation should facilitate the roll-out of the system in B.C. in 2008. Long-term benefits of this system include improved customer service and retention, and faster, more efficient product development.

To provide additional assistance to residential customers, we introduced TELUS Premium Care service. This new service provides 24-hour-a-day technical support to address issues beyond the scope of TELUS' complimentary support, such as product and software installations, computer system tune-ups and e-mail account set-ups.

In 2007, we became the first company in Canada to offer Enhanced Directory Assistance, a highly personalized directory experience that enables customers to conveniently search for movies, weather and business information on their wireline phones.

At TELUS, we handled more than 76 million directory assistance calls in 2007 and gained external recognition for our efforts. TELUS was named the Best Directory Assistance Provider in Canada for the fifth consecutive time and Number One for Customer Care among third-party directory assistance providers in the U.S. by The Paisley Group Ltd. TELUS was also awarded the Best Directory Assistance Service in the Americas at the International Directory Assistance Awards.