Telus Continues Increasing Exposure to Peripheral Businesses While Its Telecom Business Rolls Along

We think Telus’ recently enhanced fixed-line network provides the most opportunity for the company’s business. Telus has made a considerable investment over the last several years to improve its wireline network with fiber to the home. It now passes roughly 80% of its high-speed internet footprint with fiber, and we think the FTTH strategy sets Telus up for continued success. In the years since the fiber buildout began, Telus has already taken significant market share from Shaw, its primary competitor in the western Canadian geographies where it competes. In addition to further success we expect in adding subscribers, we believe the higher-quality network gives Telus more pricing power and is more efficient, leading to reduced costs.