One of the leading Canadian telecommunication companies,
) has collaborated with
) to add the 100G technology solution of the latter to its
network. Through this technology, Telus aims to provide a cost
effective networking solution that supports speed and higher
network bandwidth. The financial details of this transaction were
The leading Japanese technology company, Fujitsu will enable
the deployment of 100 Gbps optical components over its FLASHWAVE
9500 networks for Telus, providing several benefits. These
include cost benefits through lesser cost per GB of traffic,
increased network utilization and higher spectrum efficiency.
These would further drive revenues for Telus as better
network would support new product offerings and customer
Apart from seeking 100G technology deployments, Telus is
taking a number of initiatives to improve its wireless services.
It is leading the Canadian industry in the deployment of the
three fastest wireless networks - high-speed packet access plus
(HSPA+), HSPA+ Dual and LTE. The company is providing 4G LTE
networks with the popular Samsung Galaxy S III, HTC One X,
Samsung Galaxy Note, Huawei E397 4G LTE Mobile Internet Key and
Samsung Galaxy Tablet. These initiatives have resulted in solid
growth in its post-paid divisions with smartphones comprising
almost 66% of the post-paid base in 2012, much higher than 53%
recorded a year ago. Further, the company is expanding Internet
data centers to support its cloud computing services.
Apart from wireless, Telus is also focused on improving its
wireline business with the ongoing investments in the expansion
of its fiber optic network that supports compelling home
entertainment services in the Western Canadian market. The
company continues to add new features as well as 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.
In 2012, the company also registered increases in TELUS TV
subscription (up 33.2% year over year) and high-speed Internet
services (up 28.1% year over year). The TELUS TV subscriber base
touched 1.4 million last year.
However, despite these tailwinds, intense competitive
pressures resulted in lesser subscriber addition. During 2012,
Telus' gross customer addition decreased 8.5% year over year. The
post-paid division added nearly 112,000 or 8.7% less users, while
the addition of prepaid customers fell 40,000 or 7.8%.
The company's strict credit policies as well as loss of a
federal wireless contract to a lower bid by a prominent national
carrier made the picture even worse. Further, the company also
felt the burden of higher operating expenses in 2012 due to
higher per-unit subsidy costs for smartphones, changes in pricing
plans, increased advertising and promotional costs and
higher commission rates.
Telus Corporation - which operates within the Canadian telecom
industry along with
Rogers Communications Inc.
) - currently carries a Zacks Rank #4 (Sell).
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