TELUS- An Investment Report

Executive Summary

TELUS is the second largest Canadian telecommunications provider. In telecommunications, the margins are often direct function of the market share. The mobile services are nationwide, and the fixed line services in British Columbia, Alberta and eastern Quebec offered. TELUS gains continuously for both divisions gain market share with existing customers along with maintaining a strong loyalty. Advanced technical standards (in 14 Canadian cities, is a fourth-generation mobile network was launched), good corporate governance, simple pricing models and a high commitment to the less competitive western Canadian provinces are major strengths. The objectives for 2012 of TELUS were revised upwards; the target has been made that the revenue will increase $50 million due to an increase of the range of wire-line products. The company continued to focus on upgrading the mobile network capacity, the continued rollout of new mobile network LTE in urban areas, investment in new Internet data centers on the cutting edge of technology, as well as continued investment in expanding the broadband infrastructure and upgrades to support the growth of TV and Internet services. As part of investments related to the expansion of broadband infrastructure, TELUS completed the deployment of the overlay of VDSL2 technology in Western Canada and the binding of VDSL2 in the eastern Quebec. TELUS also continued to deploy fiber to homes in new residential areas, and the deployment of fiber to the buildings in new residential buildings.

Company Overview

TELUS, Canada's second largest telecom company has benefited in recent months by a paradoxical development. To date TELUS controlled by BCE (Bell Canada) and Rogers Communications and about 95% of the market, which is estimated at an annual volume of $16 billion is with them along with 41,100 employees working and market capitalization of $2.49B.

Company founded in 1990 by the government of Alberta which headquartered in Burnaby, British Columbia, Canada. TELUS primarily operated in Canada. TELUS offers telecommunications product including: Internet Provider, Fixed-line provider, Mobile operator and Pay-TV. The products that are offered by TELUS are CDMA 2000, IDEN, HSPA+, LTE and many more.

TELUS showed operating revenues of $9.8 B in 2010 while in 2011 they increased it with $10.4B which increased in 6.2%. TELUS has increased their wireless subscribers in 2011 with 5.3% (2011: 7.345M; 2010: 6.97M). Furthermore, company also increased their internet subscribers with 4.6% (2011: 1.29M; 2010: 1.23M), while the highest increased was in TV subscriber with 62% in 2011. TELUS has maintain it status of total return in world ranking versus incumbent telcos is on the 1st potion from last 10 years (TELUS Investor fact sheet, 2012).

Summary of Key Financials

The financial highlight of TELUS indicates relatively a good picture. The profitability trend has improved in last here years. ROA in 2011 was 6.16 which mean that company has generated revenue from their assets in 2011 compared to last two years. ROE is also showing a positive trend in 2011with 15.96 which means that TELUS has utilized investors money in profitable manner and has maintain their increasing ...