Telus winding down copper network as it releases Q3 results

Telus Corp. expects to have its legacy copper network out of commission within the next year to 18 months. At a third quarter earnings call with analysts, Tony Geheran, executive vice-president and chief customer officer, said about 12 per cent of the company’s clientele is still using the old copper networks. That 12 per cent figure is down from the 15 per cent in the previous quarter. Geheran expects the migration to fibre to be completed by 2022-2023. Zainul Mawji, executive vice-president of Telus Home Solutions, said broadband growth is very strong and that the firm is attracting customers with different aspects of its bundles. “We can leverage opportunities when customers want new products,” she noted. Geheran said very few clients are solely buying landline services from the telecom. When Telus began migrating to fibre in 2013 its focus was on new customers but now has widened to the entire range of customers. “Now you can do migration when you do repairs,” he said. Revenues for the third quarter increased by 6.8 per cent to $4.3 billion. The company attributed the increase to five factors: higher internet and third-wave data service margins; growth in revenue due to increases in mobile and connected device subscribers; mobile equipment margin growth; increased contribution for the digitally-led customer experiences; and lower bad debt expense. Telus reported 320,000 new customers overall, an increase of 43,000 a year ago. That figure was made up of approximately 135,000 mobile and 110,000 connected devices, 46,000 internet, 30,000 security and 10,000 TV customers. The gains were offset by residential voice losses of 11,000. The company has a total subscriber base of 16.6 million, a jump of 5.9 per cent in the last year. Mobile revenue increased by $56 million or 3.7 per cent, with an average revenue per user (ARPU) of $58.13, relatively unchanged from the third quarter of 2020. Roaming fees have recovered to about 50 per cent of their pre-pandemic levels, Jim Senko, executive vice-president of Telus’ Mobility Solutions told analysts at the Friday call. Drew McReynolds, an analyst with RBC Dominion Securities Inc., issued a reaction saying the results were in line with his company’s forecast and that they should be regarded as neutral to moderately positive for Telus shares. Telus has filed a lawsuit disputing Quebecor Inc.’s 3500 MHz spectrum. That case is still before the courts. Company President and CEO Darren Entwistle refused to be specific as to when the telecom would roll out its own 3500Mhz products but added that “2022 is the right assumption.” -- Reporting by Paul Park, ppark@thewirereport.ca and editing by Jenna Cocullo, jcocullo@thewirereport.ca.

Telus winding down copper network as it releases Q3 results

Broadcast | November 5, 2021

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Telus winding down copper network as it releases Q3 results

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