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How is TELUS competing in the residential TV and Internet markets?
In past years, we have faced the competitive challenge of the cable-TV companies making steady inroads into the local telephony market. However, the opportunity to compete effectively in the entertainment market was constrained given that our broadband footprint was not large enough to mass market our TV services. In 2010, the situation began to turn in our favour.
In 2010, TELUS created competitive advantage in Western Canada and Eastern Quebec on several fronts. Facilitated by ongoing capital investments, we introduced Optik TV and High Speed Internet service, launched an innovative marketing campaign and improved our service bundles.
TELUS' ongoing significant investment in the expansion of our fibre-optic network in recent years has given us the capacity to introduce Western Canadians to the most compelling home entertainment services on the market today.
In 2010, TELUS revolutionized home entertainment with a new suite of advanced TV and high-speed Internet services.
Optik High Speed Internet provides access speeds of up to 25 megabits per second (Mbps) available wirelessly throughout a customer's home. Optik TV, powered by Microsoft Mediaroom, is a superior TV service that offers customers access to over 400 TV channels, including more than 85 in HD, video on demand, picture-in-picture browsing, fast channel changing and on-screen call display for incoming phone calls. A key differentiator is PVR Anywhere, which wirelessly networks up to six TVs in the home with one multi-tuner PVR, allowing customers to pause a recorded show in one room and resume watching it in another room.
A further development was the launch of Remote Recording last August, an integrated solution that allows Optik customers to program their PVR remotely using web-enabled devices such as iPhones and certain other smartphones. Additionally, TELUS Optik TV customers were among the first in the world to be able to use the Xbox 360 as a digital set-top box.
As a result of these service enhancements, Optik experienced very strong demand in 2010 with a record 144,000 TV additions, an 85 per cent increase in TELUS' TV subscriber base. High-speed Internet growth has also resumed and network access line erosion has slowed.
Joe Natale
Executive Vice-President and Chief Commercial Officer,TELUS Customer Solutions
Notably, we took the opportunity with the Optik launch to evolve our nature-based brand with the introduction of the first person to appear alongside a TELUS critter. The TV spots and web videos with Danny the installer allow us to better explain the many Optik features to consumers while staying true to our brand promise of making new technologies simple, relevant and enjoyable to use.
TELUS' extensive Western Canadian distribution network is a key competitive advantage over our major cable-TV competitor, giving us the ability to be a one-stop shop for all mobility and wireline offerings. We also have the advantage of being able to offer an integrated service bundle in Alberta, B.C. and Eastern Quebec with Optik TV and High Speed Internet, along with wireline and wireless voice and data.
These differentiating factors and innovative initiatives, particularly those related to our entertainment offering, are providing positive momentum for TELUS in the competitive TV and high-speed Internet market.