Environmental Analysis and Future Outlook of Telus

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Telus Corp. - Environmental Analysis and Future Outlook

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Prepared byChris CroninLisa BoRandy LiaoHelen WangBhawna AroraApril 5, 2012 |

Current Business Model

Telus is currently the second largest telecommunication company in Canada. It earned annual revenues of $10.4 billion in 2011 by providing services to more than 12.7 million customers, including 7.3 million wireless subscribers, 3.6 million network access lines, 1.3 million internet subscribers and more than 500,000 Telus TV customers (Annual report, 2012). Telus operates a diversified telecom product and service portfolio that includes wireless, data, internet protocol, voice, television, entertainment, and video (Annual report, 2012).

Regional strategies

Telus is currently a large national player in the telecommunications industry. Its wireless division has a strong presence across Canada whilst its wireline services have a dominant base in British Columbia, Alberta, and Eastern Quebec. Telus’ domestic strategies are twofold. On the one hand, the company is striving to take more market share of existing products. On the other hand, the company is also developing new products and new business models to seize opportunities in other market niches, some of which are innovative ones where market competition is low (Kim and Mauborgne, 2006).

Wireless

The wireless segment earned annual revenues of $ 5,462 million in 2011, representing a year-on-year growth of 9.0% from 2010. Compared to the 5.3 % decline in the traditional wire-line segment at Telus, the wireless segment has become a major source of income for Telus. The EBITDA margin of the wireless segment on Telus’ total revenue is 39.7%, which is already more than the 31.2% of the traditional wire-line segment (Annual report, 2012). In terms of the number of subscribers, the wireless segment now provides services to 7,340,000 customer connections, a 5.3% growth from last year.

The wireless segment is a stable growing segment...