Strengt chs 1. Stro ng Customer Base of over 3.

5 million wire-line network access lines, 7 million wireless subscribers, & over a million Internet subscribers worldwide Deep penetration into the Canadian market by providing services urban and rural area of Canada. For example, through new agreement with the BC government internet connectivity to 93 to 97 percent of the population 2. Improved Operational Efficiency across its offerings
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-6.2% increase from 9.8 to 10.4 billion dollars -TELUS consolidated certain of its customer-facing units to achieve cost efficiencies, and to better align distribution channels and product and service roadmaps with key industry vertical markets: the public sector, healthcare, financial services, energy and

Robust Strategy for Telus TV Through combination of service from Optik and Telus Satelettie TV to provide larger geographical overage/penetration. Moreover, Optik TV service continues to drive leading North American IP TV

penetration gains, as demonstrated by the addition of 196,000 customers and the 62 per cent increase in our TELUS TV base in 2011 and the 62 per cent increase in our TELUS TV

Next Generation Services Portfolio through launch of LTE in selected urban area, providing technological edge on top existing HSPA+ networks
Compete effectively in serving a variety of customer Segments through launch of Koodo Mobile in March 2008. Koodo has been successful to date, positively affecting postpaid subscriber loading. As Canadian wireless penetration increases, industry net loading is expected to continue to shift towards basic service brands. Koodo positions TELUS to compete more effectively with the value segment of the market WEAKNESS Erosion of TELUS residential network access lines (NALs) is expected to continue from this competition, as well as ongoing technological and wireless substitution

Operations are heavily dependent on Canada only with stronger focus on Western Canada..especially during uncertain econotomic
Decline in wireless voice revenue due to lower usage as customers move towards using more texting and data services and reducing voice calls, as well as competitive pricing

Opportunites

Wireless industry penetration of the Canadian population to increase between 4.0 and 4.5 percentage points, with wireless industry subscriber growth to remain robust due to accelerated adoption of smartphones, tablets and data applications Expand operation into the North American market as well selected areas in Asia by providing higher end service for enterprise and business customers

Expected Industry Canada spectrum auction of frequencies in the 700 MHz band would allow initial stage of upgrade to rural Canada This spectrum, in contrast to AWS spectrum, has superior propagation capabilities that make it effective and efficient in covering Canadas expansive rural geography. In addition, these same capabilities improve the quality of in-building coverage in urban areas. To support TELUS plans to expand 4G LTE wireless service to rural markets, it will be important for the federal government to provide an opportunity for TELUS to bid on and acquire 700 MHz spectrum in the planned auction

Threats
Activities of the dominant Internet and TV service provider in Western Canada, Shaw Communications, such as the introduction of new generation PVRs, increases in certain Internet service speeds, more customization choices for TV, Internet and home phone services, and continued promotional discounts to new subscribers; wireless entrants pursuing subscriber growth by using forms of unlimited and flat-rate voice, text and data plans, as well as adopting a device subsidy approach and beginning to offer smartphones

Transition to 4G wireless technologies could be slowed by delays in the development of the LTE ecosystem significant and nontrivial challenges that the industry needs to overcome. delays, when put against a background of surging data traffic demand, represent a risk for the operator. Industry Canada plans to auction spectrum in both the 700 MHz and 2.5/2.6 GHz bands in the 2011 to 2012 timeframe. Release of future wireless spectrum in these bands could facilitate expansion for incumbents and provide additional opportunities for new entrants to offer wireless broadband services. There is uncertainty regarding the governments timing and position in regulating these potential spectrum bands. Auction rules may, for example, favour non-incumbents. As the rules for future auctions are unknown, the capital outlay required to successfully bid on additional spectrum is uncertain.