Snapshot of operations: Wireline

Growing demand

The Canadian wireline market is mature, with flat to negative revenue growth. In 2011, the landscape remained dynamic as older legacy services such as local and long distance telephony continued to decline due to migration to wireless, data and voice over IP (VoIP) services. In addition, cable-TV and other companies continue to increase the speed and availability of their data offerings, targeting new markets and increasing competitive intensity. In response, telecom companies are pushing further into the TV and entertainment business and developing and implementing innovative IP-based solutions for the business market.

TV entertainment continues to be a key area of growth for telecom companies, with market share gains by IP TV carriers at the expense of traditional cable-TV and satellite-TV companies. In addition, new over-the-top competitors, which provide video services over the Internet for a fee, are emerging as technology advances, bringing with them the prospect of video cord-cutting and/or consumer spending reductions.

In the residential market, TELUS' significant technology investments in recent years have allowed us to offer customers a superior home entertainment experience through Optik TV, delivered over our advanced broadband network. Our service bundle provides TELUS with key competitive differentiation and, in 2011, drove very successful Optik TV and High Speed Internet loading, while also slowing residential network access line losses. However, aggressive introductory promotions and discounting on service bundles remain typical as cable-TV rivals defend their TV and bundled services subscriber base. Despite the decline in voice services, TELUS is one of the few established telcos in the world that generated positive wireline revenue growth in 2011, due to the strong performance of our Optik services.

In the enterprise segment, migration to IP-based integrated and managed services continues as a result of the convergence of IT and telecommunications services. For established telcos, combined IP, voice, data and video solutions create potential cost efficiencies to partially compensate for margin pressures caused by the migration from legacy voice and long distance services.

Watch TV on your computer, tablet or smartphone – anytime, anywhere – with Optik on the go. Visit

TELUS is offering a series of business solutions targeting specific high-value enterprise and public sector segments across the country. Notably in 2011, TELUS completed a comprehensive 10-year $1 billion telecommunications agreement with the Government of British Columbia.

Many companies, including cable-TV companies, are also pursuing opportunities with VoIP services, particularly in the small and medium business (SMB) market.

TELUS wireline revenue increased by three per cent in 2011 due to data growth and bundling success that were partially offset by reductions in high-margin legacy voice and long distance revenues. As a result, the wireline EBITDA margin decreased by two percentage points to 31 per cent.

2011 results – wireline
(share of TELUS consolidated)

revenue (external)
$4.94 billion
$1.59 billion


In 2011, we:

  • Expanded our broadband network to reach close to 2.3 million households in the top markets in B.C., Alberta and Eastern Quebec
  • Upgraded nearly three-quarters of our broadband footprint to VDSL2 technology, increasing bandwidth to up to 30 megabits per second (Mbps), and deployed fibre to the home in certain areas
  • Introduced Facebook and Optik on the go services on Optik TV
  • Surpassed the 500,000 TV subscriber milestone, adding 196,000 new customers
  • Enhanced delivery capabilities for Optik TV and High Speed Internet services, including shorter appointment windows
  • Strengthened our SMB product offerings and distribution
  • Secured contract renewals and additional business with the Governments of Ontario and British Columbia
  • Grew wireline data revenue by $310 million or 14 per cent.

2012 targets – wireline1
(share of TELUS consolidated)

revenue (external)
$4.95 to $5.1 billion
$1.5 to $1.6 billion

1 See Caution regarding forward-looking statements.

In 2012, we are:

  • Enhancing the customer experience by simplifying products, clarifying communications, and improving call centre wait times and installation and repair quality
  • Continuing to expand our broadband network capabilities
  • Accelerating growth of Optik TV and High Speed Internet services, while increasing revenue and profitability
  • Continuing development and roll-out of Optik on the go and other services to create further differentiation
  • Driving increased sales in the SMB market through enhanced coverage and connectivity, simple and targeted offers, and high-quality customer service
  • Increasing the number of Canadians using our innovative healthcare technology solutions
  • Targeting revenue growth of up to three per cent in our wireline operations.