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Review of operations wireline

New TELUS revenue streams to offset legacy service declines

The Canadian wireline market is mature with flat to negative revenue growth. The convergence of IT and telecommunications is causing a migration to IP-based integrated and managed services. Many companies, including cable-TV companies, are pursuing these opportunities with voice over IP (VoIP) services, particularly in the small and medium business (SMB) market. In the residential market, local, long distance and Internet services remain very competitive, while TV entertainment continues to be a key area of growth.

For incumbent telcos, combined IP, voice, data and video solutions create cost efficiencies to partially compensate for margin pressures caused by migration from legacy voice and long distance services.

All sectors of the wireline market were competitive in 2010, with aggressive introductory promotions and discounting on service bundles being typical in the residential market.

TELUS is offering a series of business solutions targeting specific high-value enterprise and public sector segments. As well, we are strengthening our SMB offerings.

TELUS focused on expanding our network coverage footprint with the continued roll-out of advanced technologies. This larger footprint, combined with the launch of enhanced IP TV service powered by the Microsoft Mediaroom platform, drove increasing customer demand. Branded and mass marketed as Optik, our TV and High Speed Internet suite of services enjoyed widespread acceptance in urban markets in Alberta and B.C. Our superior TV entertainment experience, bundled with other TELUS services, is helping to slow erosion of legacy voice services.

TELUS wireline revenue declined slightly in 2010 due to lower legacy voice and long distance revenues, partially offset by data growth. The wireline EBITDA margin increased to 33 per cent, reflecting effective cost control.

Innovative TV

Learn how to record remotely on TELUS Optik TV at

Learn more

Meet Danny the installer, who was introduced to demonstrate the benefits of the incredible home entertainment that Optik provides to consumers. As the first spokesperson to appear in our advertising, Danny represents the evolution of the TELUS brand from the exclusive use of nature-based imagery to images that enable us to connect with our customers in a new way. Danny appears in TV spots, online campaigns and web videos, which you can watch at

A history of innovation

Opened two world-class Internet data hosting centres
Introduced TELUS Future Friendly Home® strategy, offering new digital home solutions to consumers
Began significant multiyear broadband expansion, with array of new technologies, as our platform for future growth
Launched Optik brand for our IP-based TV and High Speed Internet services
Introduced TELUS Health Space, an e-health records platform for consumers

What we offer

We are a full-service incumbent local exchange carrier in B.C., Alberta and Eastern Quebec offering a wide range of telecommunications products to consumers including residential phone, Internet access and television and entertainment services. Nationally, we provide communications and IT solutions for businesses including IP, voice, video, data and managed solutions.

Reliable phone service with long distance and call management services
Secure Optik High SpeedTM Internet access service with a comprehensive suite of security solutions
High-definition (HD) entertainment service featuring personal video recording (PVR), HD Video on Demand and Pay Per View services with Optik TVTM and TELUS Satellite TV®; Optik TV also offers PVR Anywhere, Remote Recording and use of Xbox 360 as a set-top box
IP networks and applications:
Leading-edge IP networks that offer converged voice, video, data or Internet access on a secure, high-performing network
Conferencing and collaboration:
Full range of equipment and application solutions to support meetings using phone, video and the Internet
Contact centre and outsourcing solutions:
Managed solutions providing secure, stable, low-cost and scalable infrastructure. TELUS International is a leading provider with sophisticated centres in North America, Central America and Asia
Hosting and managed IT:
Ongoing assured availability of telecommunications, networks, servers, databases, files and applications with critical applications stored in TELUS' intelligent Internet Data Centres
TELUS Health Solutions provides claims management solutions, hospital-to-home technology, patient records at the point of care, and access to essential drug and medical information through information communication technology.

2010 Results - Wireline

(share of TELUS consolidated)

In 2010, we:

  • Expanded our broadband network with ADSL2+ technology to reach 2.1 million households in the top markets in B.C., Alberta and Eastern Quebec
  • Continued our network upgrade to VDSL2 technology, increasing broadband download speeds to up to 30 megabits per second (Mbps), and deployed fibre-to-the-home in certain areas
  • Launched Optik TV service featuring PVR Anywhere, and introduced wireless Remote Recording
  • Boosted the TELUS TV subscriber base by 85 per cent to 314,000
  • Reduced our operating expenses through ongoing operational efficiency
  • Introduced TELUS Health Space, Canada's first personal electronic health information platform that offers secure sharing applications to licensing organizations.

2011 Targets - Wireline1

(share of TELUS consolidated)

1 See Caution regarding forward-looking statements.

In 2011, we are:

  • Improving the customer experience by simplifying products, clarifying communications and improving installation and repair quality
  • Accelerating growth of Optik TV and High Speed Internet services to improve client loyalty while reducing the cost of acquisition
  • Delivering increased sales in the SMB market through enhanced coverage and connectivity, simple and targeted offers, and high-quality customer service
  • Moving from trials to a commercial roll-out of TELUS Health Space
  • Targeting revenue growth of up to two per cent in our wireline operations.