TELUS welcomes federal government decision on deregulating local telephone services



    VANCOUVER, April 4 /CNW/ - On behalf of its customers, TELUS welcomes
today's announcement of the next step towards local phone service deregulation
across Canada.
    "Today's decision recognizes the competitive nature and significant
choice that exists in today's marketplace and is good news for our customers,"
said Janet Yale, TELUS executive vice-president of Corporate Affairs. "The
decision also removes a number of outdated marketing restrictions so TELUS can
compete on an even playing field and continue to invest in technology and
innovation to the benefit of Canadian consumers and the competitiveness of our
business. TELUS now has the flexibility to swiftly move towards deregulation
of local phone services in key markets across B.C., Alberta and eastern
Quebec."
    The federal government has confirmed that the relaxation of local phone
service regulation by the CRTC will be based on two competition tests
announced by Canada's Industry Minister Maxime Bernier on December 16.
    In contrast to existing regulations, which force telecommunications
carriers to lose 25 per cent of their local line market share in traditional
territories before they are allowed to apply for de-regulation, the new rules
allow carriers to apply to the CRTC for any community where customers can
chose between service providers and where the incumbent telephone company
meets specific quality of service measures for six months.
    The new rules state that local business services will be deregulated
where there is a choice of at least two phone providers with their own
infrastructure; consumer services where there is a choice of at least three
providers with their own infrastructure, one of which can be a wireless
provider. TELUS expects to have soon demonstrated that those conditions for
deregulation have been met in many of the large centres it serves.

    About TELUS
    TELUS (TSX: T, T.A; NYSE:   TU) is a leading national telecommunications
company in Canada, with $8.7 billion of annual revenue and 10.7 million
customer connections including 5.1 million wireless subscribers, 4.5 million
wireline network access lines and 1.1 million Internet subscribers. TELUS
provides a wide range of communications products and services including data,
Internet protocol (IP), voice, entertainment and video. Committed to being
Canada's premier corporate citizen, over the last six years TELUS has
contributed more than $76 million to charitable and non-profit organizations,
and has established seven TELUS Community Boards across Canada to lead its
local philanthropic initiatives. For more information about TELUS, please
visit telus.com.





For further information:

For further information: For media inquiries, please contact: Jim
Johannsson, TELUS Media Relations, (780) 493-6197, jim.johannsson@telus.com;
For investor inquiries, please contact: John Wheeler, TELUS Investor
Relations, (604) 697-8154

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