Telus Financial Figures 2004-2006

FINANCIAL ACCOUNTING

MBA 613

TELUS FINANCIAL

STATEMENT ANALYSIS

Submitted to:

Prof. Steven Horcoff

Submitted by:

Eugene Richards

TELUS CORPORATION – FINANCIAL REVIEW

A. Company Overview

Telus has two major operations: wireline and wireless. These operations are grouped by similarities in technology, the technical expertise required to deliver the products and services, distribution channels and regulatory treatment.

The Telus wireline includes:

• Voice: local, long distance, call management and the sale, rental and maintenance of telephone equipment.

• Internet: high speed or dial up with security features

• Telus TV: available in select neighbourhoods with video on demand and pay per view

• Data: (IP networks, private line, switched services, network wholesale, network management and hosting

• Converged voce and data solutions: Telus IP-One –One Innovation and Telus IP-One Evolution

• Hosting and infrastructure: managed IT and infrastructure solutions delivered through Telus’ IP networks connected to Telus’ internet data centres

• Security solutions: managed and non-managed solutions to protect business networks, messaging and data , in addition to security consulting services

• Customized solutions: contact centre services including Call Centre anywhere, conferencing services, webcasting, audio, web, and video and human resource and health and safety outsourcing solutions.

National business services

Telus has an IP-based network overlaying an extensive switched network in incumbent territories in B.C., Alberta and Eastern Quebec. Access services and certain competitive digital network access services are subject to rate regulation in these territories. Operations in non-incumbent areas of Ontario and Quebec are not rate regulated. Managed solutions, such as the provision on human resources outsourcing services to business customers, are offered nationally. Wholesale services are provided to telecommuncations carriers, resellers, internet services providers, wireless communications companies, competitive local access providers and cable-TV operators.

Telus has access to virtually every urban and rural home in its incumbent territories in B.C. Alberta and Eastern Quebec. The company provides local, long distance and internet services. The company also has broadcasting distribution licenses to offer digital television services in select communities across its incumbent territories, and licenses to offer commercial video-on-demand services.

The Telus Wireless segment includes

• Digital voice services: PCS postpaid, PCS Pay and Talk prepaid, Mike all-in-one and Push to Talk capability on both mike and PCS

• Internet: Telus Spark services including wireless web, text, picture and video messaging, music, ringtones, image and game downloads, Telus mobile Music, Telus Mobile radio and Telus mobile TV,

• Data Services: PC cards and personal digital assistants available for use on wireless high speed, 1X and Mike packet data networks.

Telus has facilities-based services with access to approximately 95% of the Canadian population, operating a CDMA network with high-speed evolution data optimized in major centres, and idEN-based Push To Talk service focused on the commercial marketplace.

Telus is in sound financial condition. The Company’s revenue is steadily increasing as it captures more of the wireless market segment. Telus is left with a healthy amount of EBITDA after operating expenses are removed from revenue.

Operations 2006 О” 05-06 О” 05-06 (%) 2005 О” 04-05 О” 04-05 (%) 2004