VANCOUVER – Fourth quarter revenue at Telus rose 4% to $2.55 billion, the company reported today, driven by a 9% growth in wireless revenue and 7% in wireline data revenues.
Wireless average revenue per unit (ARPU) increased 1.9% this quarter, the first year-over-year increase in 14 quarters. Smartphones represented 46% of post-paid gross additions in the fourth quarter, as compared to 25% in same period last year. Higher revenue smartphone subscribers now represent 33% of total post-paid subscribers compared to 20% a year ago. However, the cost of acquisition per gross addition increased year-over-year by 2.1% to $388, reflecting a higher per-unit subsidy largely caused by a higher smartphone mix and the cost of retention of $170 million increased by 28%, primarily reflecting higher retention volumes and equipment subsidy costs from increased migrations to higher cost smartphones.
As well, the company added 119,000 wireless subscribers and a record 48,000 TV subscriptions (for more than 314,000) due to the success of Optik TV, says the company’s press release.
In 2010, total customer connections increased by 378,000, generated by a 7% increase in wireless subscribers and 85% growth in Telus TV customers, partially offset by continued declines in landline connections.
