Telus’ Superior Fixed-Line Positioning Sets It Apart From Peers

Telus is one of the three dominant Canadian wireless carriers, but we think its wireline unit is its standout business. Telus has replaced most of its legacy copper network with fiber, significantly upgrading the quality. We think this move has set Telus up for a prolonged period of success. Telus has already taken significant market share from Shaw (now owned by Rogers), its primary competitor in the western Canadian geographies where it competes. In addition to further success we expect in adding subscribers because of the better capability the fiber network offers, we believe the fiber network gives Telus more pricing power and is more efficient, leading to reduced costs.