Progressing leadership position in high speed wireless
VANCOUVER, Oct. 10 /CNW/ - TELUS today announced that it will build a
next generation wireless network using the most advanced mobile broadband
network technology. Reinforcing TELUS' leadership in the mobile broadband
market and the ability to provide clients with the best selection of wireless
services and networks in Canada, TELUS announced its commitment to a full
national launch of a next generation wireless service by early 2010 based on
the latest version of High Speed Packet Access (HSPA) technology. This
initiative ensures a smoother transition to long term evolution (LTE)
technology, the emerging worldwide fourth generation (4G) technology standard,
as it becomes available.
"This technology evolution is a win for Canadian consumers. TELUS'
investment in next generation wireless services will give our clients more
wireless functionality including; international roaming, fast network speeds
and a compelling selection of globally-compatible handsets and devices," said
Darren Entwistle, TELUS President and CEO. "As the next evolution in our
multi-network strategy, this initiative will position TELUS to actively
participate in the future global LTE eco-system and leverage economies of
scale, offer timely access to handsets, and enhance global roaming
relationships and revenues."
This enhancement to the TELUS mobile network offers further choice for
its customers. The move complements TELUS' existing wireless portfolio that
includes Code Division Multiple Access (CDMA), providing access to Canada's
largest third generation (3G) High Speed wireless (EVDO) network and Mike, its
industry leading Push-to-Talk network and business service. TELUS plans to
support its CDMA and Mike (iDEN) customers for the foreseeable future,
providing TELUS customers the full choice of wireless solutions that best
suits their needs.
Current CDMA networks continue, in many respects, to be the best
performing wireless technology in the industry and serve more than 11 million
Canadians. TELUS is continuing to evolve its technology leadership position to
offer TELUS customers the best selection of wireless devices and service
experience possible no matter what network technology is running in the
"Over the years, we have evolved our network cost-effectively through
many well executed technology upgrades, driving innovation in the industry,"
said Mr. Entwistle. "Today's announcement makes clear that we are on track to
continue doing this well into the future."
With the new network capability, expected to be completed by early 2010,
almost all major mobile wireless handsets and devices in the world could be
available to TELUS, spanning HSPA, CDMA, and iDEN networks. By adding the
capabilities of HSPA, TELUS has a smoother evolution path as the world
transitions to LTE.
After a comprehensive review process, TELUS has selected Nokia Siemens
Networks and Huawei to provide the equipment for TELUS' new next generation
As part of its investment, TELUS has entered into a network sharing
agreement with Bell, which builds on and enhances arrangements in place since
2001. The network sharing agreement allows TELUS to lower the cost, increase
the speed of the build-out and gives TELUS the ability to offer the widest
national coverage for HSPA, using existing 1900 MHz and 850 MHz spectrum, in
the shortest time possible.
The agreement facilitates the more rapid deployment of next generation
wireless voice and data services on a national basis, optimizes cell-site
utilization, and maximizes the potential for operating efficiencies. Canadians
should benefit from enhanced choice for roaming both domestically and
internationally and access to new next generation data services and
"The upfront investment in the initial deployment of this technology is
non-recurring in nature while the strategic and financial benefits recur well
into the future," said Robert McFarlane, TELUS Executive Vice-President and
Chief Financial Officer. "The anticipated advantages to TELUS include lower
network capital and ongoing network operating costs, lower handset costs due
to the large HSPA device ecosystem, and access to increased future global
Initial capital expenditures for the new network are included in TELUS'
original and unchanged 2008 consolidated capex guidance of approximately
$1.9 billion this year. For 2009, TELUS expects that total wireless capital
requirements including those related to the HSPA build-out will be temporarily
higher than historic levels at approximately $750 million.
TELUS will hold a conference call with investors and financial analysts
on October 10 at 11:00 a.m. Eastern Time. The conference call will be
available live on the TELUS Web site at http://www.telus.com/investorcall.
For additional information, TELUS customers can go to
http://www.telusmobility.com/network to find out more about what this
announcement means to them.
TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications
company in Canada, with $9.4 billion of annual revenue and 11.4 million
customer connections including 5.8 million wireless subscribers, 4.3 million
wireline network access lines and 1.2 million Internet subscribers. TELUS
provides a wide range of communications products and services including data,
Internet protocol (IP), voice, entertainment and video. In support of our
philosophy to give where we live, TELUS, our team members and alumni have
contributed $113 million to charitable and not-for-profit organizations and
volunteered more than 2.1 million hours of service to local communities since
2000. Nine TELUS Community Boards across Canada lead our local philanthropic
initiatives. For more information about TELUS, please visit telus.com.
This news release contains forward looking statements about TELUS.
Forward looking statements are not based on historical facts, but rather
on current expectations, company assumptions and projections about future
events. These statements include but are not limited to those regarding:
completion of the network build and sharing arrangement with Bell; choice of
suppliers; deployment of next generation services; expected technology
evolution path and transition to 4G technology, expected benefits from the
proposed initiative; expected benefits and performance of HSPA/LTE technology;
expected availability of existing wireless portfolio, capital expenditure
requirements and guidance; and statements regarding strategies, objectives,
goals and targets. There can be no assurance that any of the foregoing will
occur at all or on the timetable contemplated in this news release.
Forward-looking statements may prove to be inaccurate and readers are
cautioned to not place undue reliance on them. Forward looking statements are
subject to risks and uncertainties which could cause actual results to differ
materially from the future results expressed or implied or projected by the
forward looking statements, and are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Assumptions, risks and uncertainties include but are not limited to those
assumptions and risk factors disclosed from time to time in TELUS' reports,
public disclosure documents including Management's discussion and analysis,
Annual Information Form, and in other filings with securities regulatory
authorities in Canada (on SEDAR at www.sedar.com) and the United States (on
EDGAR at www.sec.gov), as applicable. They also include the following risks
and uncertainties: difficulties in the completion of definitive agreements
with suppliers; increased costs or difficulties related to completion of the
network build or the network sharing arrangement; benefits, efficiencies and
cost savings from the new technology or proposed initiative cannot be fully
realized; transition of services or technology will be more difficult than
expected; LTE does not emerge as the worldwide 4G technology standard; and
other anticipated and unanticipated costs and expenses and other risk factors
relating to TELUS or affecting Bell or the selected suppliers.
The forward-looking statements included in this news release represent
TELUS' views as of the date hereof and should not be relied upon as
representing its views as of any other date. TELUS specifically disclaims any
obligation to update any forward-looking statements contained in this news
release or any other forward-looking statement, whether written or oral, that
may be made from time to time by it or on its behalf.
For further information:
For further information: Media Relations: Shawn Hall, (604) 697-8176,
Shawn.Hall@telus.com; Investor relations: Robert Mitchell, (416) 684-3219,