) received an industry winning MPEG-4 AVC HD compression
). The technology will be used in Telus' IPTV service, called
Implementing the new technology, TELUS will not only improve
the HD video quality service for its subscribers but will also
offer advertisement loudness control.
Telus is focusing heavily on improving its wireline business.
The company is making huge investments in the expansion of its
fiber-optic network that supports compelling home entertainment
services in the West Canadian market. Telus continues to add new
features and upgrade the existing features of its Optik TV and
Optik High Speed Internet broadband services that are gaining
traction across British Columbia, Alberta and Eastern Quebec.
At the end of the fourth quarter of 2012, TELUS added 41,000
TV subscribers to reach a total of 678,000 customers (up 33% year
over year). Such robust growth in TELUS TV subscribers was mainly
attributed to higher demand for Optik TV services.
According to a report presented by ABI Research firm, IPTV
market share registered 11.5% growth in 2012 as compared with 10%
in fiscal 2011. Therefore, we believe that IPTV will be the next
big thing for the telecom companies. So, making investments at
the initial phase will deliver better results going forward.
However, the Canadian telecom industry is hugely dominated by
two big players, namely,
Rogers Communications Inc.
). Hence, we believe that the launch of such an innovative
technology will not only offer a cutting edge over large carriers
but will also drive its subscriber growth, going forward.
Telus Corporation currently carries a Zacks Rank #4
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