TELUS operates a unique, differentiated wireless service under the brand name Mike. Based on Motorola's integrated digital enhanced network (iDEN) technology, TELUS' service offers a fully featured mobile solution including Push To Talk (PTT) or walkie-talkie type service. Mike is differentiated against current CDMA-based PTT services in Canada, in that Mike's Direct Connect PTT service has superior call set-up time, inter-call latency and a loyal existing base of clients.

The challenges faced by Nextel's iDEN service in the U.S. following its acquisition by Sprint, highlighted by significant customer losses, have caused investors concern that TELUS could face similar challenges in Canada. The answer is a definite no, as there are fundamental differences between the two companies' approaches and current situations. Unlike Nextel, TELUS' Mike service has remained targeted at business customers with large mobile workforces, particularly those operating in grey and blue collar industries. In addition, Sprint's constrained spectrum position was a major motivating factor for the sizeable and disruptive migration of iDEN subscribers to PCS. TELUS' strong spectrum position means that a similar course of action is not necessary as a result of spectrum considerations.

However, a limitation of TELUS' Mike network is the lack of a high-speed wireless data solution and next generation (4G) migration path. This means customers requiring functionality for advanced high-speed wireless data solutions are beginning to look for alternatives other than Mike. Recognizing this, in early 2007 we proactively initiated a targeted retention program to identify predominantly heavy voice and light PTT users. Where appropriate, these customers are contacted with an offer to migrate to a TELUS PCS data device on our high-speed EVDO Rev A wireless network.