Cable / Telecom News

Wireless, data remain key focus for Telus


VANCOUVER – Telus said that it expects its wireless and wireline broadband networks will power its performance next year.

In an announcement detailing its 2010 financial targets, the Western-based telco predicted that wireless revenue will increase 5 – 9%, depending on the amount of growth in wireless subscriber loading and the extent of ARPU erosion. It says that wireline revenue is expected to grow between -1 to 2% next year, reflecting data growth in business services and residential entertainment services largely offset by continued decreases in its traditional local and long distance segments.

Telus also said that increased data and roaming revenues from its new 3G+ network will help to offset continued declines in voice ARPU and the effects of new competitive entry.

"We expect the significant on-strategy investments made in our wireless and wireline broadband networks will generate solid results in 2010," said president and CEO Darren Entwistle, in a statement. "Our strong lineup of smart phones running on our new 3G+ wireless network, coupled with our clear and simple wireless rate plans, create opportunities for growth in the Canadian market in 2010 and beyond. This is similarly true for Telus TV running on our expanding broadband wireline network, where we also expect solid growth in 2010 and the years that follow."

Capital expenditures for 2010 will return to more historical levels of approximately $1.7 billion. The wireline broadband network for ADSL 2+ is expected to be completed in 2010, while the upgrade to VDSL 2 will roll-out over the next two years.

The company said that it is targeting consolidated revenue of $9.8 to $10.1 billion, an increase over 2009 of 2 – 5%, while EBITDA is expected to be in a range of $3.5 to $3.7 billion, an increase of 1 – 6% over 2009.

Telus also made minor adjustments to its 2009 annual guidance with both consolidated revenue and EBITDA guidance now trending towards the low end of the previously announced guidance ranges.

www.telus.com