Struggles in Telus' Nontelecom Business Leave It Unlikely to Grow Faster Than Its Telecom Peers

Unlike its peers, Telus has made substantial investments in businesses outside of telecom. These businesses—in the health, security, and agriculture industries—carry significant uncertainty and risk. Though they are small compared with telecom, we previously thought they could give Telus a boost that would help it grow faster than peers. However, the struggles of Telus Digital, which we think is at risk of being partly displaced by artificial intelligence, lead us to find Telus less attractive than peers.