TELUS (T) BMO 25th Annual Media & Telecom Conference summary

Strategic direction and market positioning

• Focus remains on customer service, churn reduction, and maintaining industry-leading network quality, especially through accelerated fiber build and product bundling.

• Emphasis on monetizing fiber investments, increasing product intensity, and delivering value-accretive solutions to customers.

• Cost reduction and digitization efforts continue to drive operational efficiency and lower cost to serve.

• Community engagement and balancing financial outcomes with social responsibility are integral to the approach.

• Strategy is consistent and expected to guide through competitive environments into 2025.

Wireless and wireline business dynamics

• Wireless loading remains strong, supported by immigration and resilient demand, with slow ARPU recovery expected.

• Competitive focus is on value rather than matching short-term handset subsidies, leveraging customer service and bundling to retain customers.

• Public Mobile's digital model supports high margins, while ARPU stabilization and slow EBITDA recovery are anticipated.

• Wireline internet ARPU growth has flattened due to competition, but customer loading and fiber migration remain robust.

• TV ARPU is declining due to lower-priced bundles like Stream+, but margins are maintained; home phone and security show moderated declines and stable margins.

Fiber, real estate, and copper decommissioning

• Fiber migration reduces churn by 25-30%, increases ARPU by 15%, and lowers cost to serve by 25-35%.

• Real estate strategy includes developing rental units, with 300 units ready in 12 months and 2,500 more in 24-36 months, potentially leading to recurring gains and REIT opportunities.

• Copper decommissioning and mining expected to generate CAD 1 billion in addressable value over five years, with a 50% margin.

• Monetization of real estate assets could begin in 24 months, depending on market conditions.