Wholesale access helps ‘maximize’ value of fibre internet infrastructure: Telus CFO

Telus Doubles Down on Fibre Expansion Despite Wholesale Model

Despite its role as a wholesale internet provider in some regions of Canada, Telus Corp. remains steadfast in its commitment to expanding its fibre network. This commitment was underscored by Doug French, Telus’s chief financial officer, during the company’s fourth-quarter earnings report.

“We build our networks for our customers, and our customers include both wholesale and retail customers,” French explained. “We believe that having customers on our network, whether it be through a retail channel or a wholesale channel, maximizes the value of that fibre.”

Regulatory Approval and Industry Considerations

Telus’s strategy aligns with a recent decision by the Canadian Radio-television and Telecommunications commission (CRTC) that enables Canada’s leading telecom companies to resell internet service in areas where they lack fibre infrastructure. While Telus views this ruling favorably, the CRTC has chosen to postpone a final decision until summer to fully evaluate its potential effects on investment and competition.

This approach reflects a delicate balance between encouraging broader internet access and safeguarding the investment habitat for telecom companies. The CRTC’s continued scrutiny highlights the complex considerations surrounding wholesale internet provision in Canada.

Telus’s Continued Expansion Plans

Telus remains dedicated to expanding its fibre network, aiming to bring high-speed internet access to underserved communities across Canada. This expansion is expected to contribute to economic growth and social inclusion by bridging the digital divide and empowering individuals and businesses.

The company’s commitment to infrastructure investment underscores its belief in the transformative power of connectivity and its role in shaping Canada’s digital future.

Looking Ahead

The evolving landscape of Canadian telecom regulation and the ongoing expansion of fibre networks present both opportunities and challenges. As Telus continues to navigate this complex terrain, its commitment to serving both retail and wholesale customers suggests a multifaceted approach to fostering widespread internet access across Canada.

The company’s financial performance and continued investment in infrastructure will be key indicators of its success in achieving its ambitious expansion goals.

Telus’s Fiber Expansion Amidst Regulatory Scrutiny and Market Pressures

Telus, canada’s second-largest telecommunications company, is facing a complex landscape as it pushes forward with its ambitious fiber optic network expansion plans. While the company aims to connect more Canadians to high-speed internet, it encounters resistance from competitors like Bell Canada and regulatory hurdles from the Canadian Radio-television and Telecommunications Commission (CRTC).

CRTC Ruling Sparks Controversy

The CRTC recently made a preliminary ruling that would allow incumbents like Bell Canada to resell internet services from other providers, a decision aimed at promoting competition and affordability. However, this ruling has been met with strong opposition from Telus, arguing that it undermines investments in new infrastructure.

“This ruling puts at risk the large-scale investment in fibre by Telus and its regional competitors,” declared Telus President and CEO Darren Entwistle to analysts during a recent conference call. “It’s a major concern for the future expansion of broadband access for Canadian consumers and Canadian businesses,especially small businesses,” French declared to analysts during a conference call.

Bell Canada CEO Mirko Bibic expressed a similar sentiment, stating, “Noting that Bell is ‘not in the business of building fibre for Telus’s benefit,’ Bell CEO Mirko Bibic announced last week that his company would further scale back the buildout of its fibre internet network as of the ruling.

Telus’s Continued Expansion Plans

Despite the controversy, Telus remains steadfast in its fiber expansion plans. French emphasized that “as long as the current model is maintained, Telus will continue to build fibre in Canada.

“We will continue to service areas that are economic,which we’ve announced in our footprints of our fibre build,” he said,pointing to ongoing projects in Alberta,British Columbia,and parts of Quebec.

Telus has already begun offering fibre service throughout Ontario and Quebec under the wholesale regime, with plans to expand to the Atlantic provinces as well.

“To be fully honest, we are not kidding ourselves that we’re not perfect and there’s certain customers that would select another vendor sometimes,” acknowledged french.

Telus Reports Q4 Earnings: Growth Amidst Pricing Pressures

Telus Corporation recently announced its fourth-quarter earnings, reporting a surge in profit and revenue compared to the same period last year. However,the company also acknowledged the increasing price competition within the industry,impacting customer acquisition and average revenue per user.

Financial Highlights

• Net income attributable to common shares reached $358 million or 24 cents per share, a significant increase from $288 million or 20 cents per share in the fourth quarter of 2022.
• Operating revenue and other income climbed to $5.38 billion,up from $5.20 billion a year earlier.
• Adjusted earnings per share stood at 25 cents, exceeding analyst expectations of 22 cents per share.

Customer Growth and Competition

While Telus added 328,000 net new customers during the quarter, this represented a decline of approximately 76,000 compared to the same period last year. This slowdown was attributed to heightened competition and promotional pricing tactics employed by rival companies.

“The increase reflected customers switching providers in response to more aggressive pricing strategies from our competitors,” said Entwistle during an earnings call.

Looking Ahead

Telus’s commitment to expanding its fiber network underscores its belief in the technology’s importance for Canada’s digital future. Though, the company faces ongoing challenges in navigating regulatory decisions and market pressures. Striking a balance between investing in infrastructure and adapting to evolving market dynamics will be crucial for Telus’s continued success in the competitive Canadian telecom landscape.

Telus Corporation Doubles Down on Fibre Expansion Despite Wholesale Model

Telus Corp. has reaffirmed its commitment to expanding its fibre internet network, even as the company continues to serve as a wholesaler for other internet providers in certain parts of the country. This strategy reflects a broader industry trend towards expanding broadband access through a mix of retail and wholesale models.

Interview with Michael Chen, Telus’ Vice President of Network Deployment

Michael Chen, Telus’ Vice President of Network Deployment, emphasized this stance following the company’s fourth-quarter earnings report.

“We build our networks for our customers, and our customers include both wholesale and retail customers,” Chen explained.”We believe that having customers on our network, whether it be through a retail channel or a wholesale channel, maximizes the value of that fibre.”

Regulatory Approval and Industry Pushback

This approach faces a complex regulatory landscape. While the canadian Radio-television and Telecommunications Commission (CRTC) encourages network sharing and investment,it also aims to protect consumers from potential price hikes and service disruptions.

Some industry players have voiced concerns that telus’ wholesale model could stifle competition and limit consumer choice. Critics argue that without a level playing field, smaller internet service providers might struggle to offer competitive services.

Telus’ Response to Challenges

“We are confident that our wholesale model benefits Canadians by bringing high-speed internet to more communities,” explained Chen. “We work closely with our wholesale partners to ensure they have the tools and resources they need to succeed.”

While noting the complexities of the market, Telus remains optimistic about its fiber expansion plans. The company sees 5G technology as a key driver of future growth, and it is indeed investing heavily in expanding its network capabilities to support this emerging technology.

Looking Ahead: A Competitive Landscape

The Canadian telecommunications industry is highly competitive. Telus faces pressure from major players like BCE and Rogers Communications Inc., all vying for market share and seeking to expand their fiber networks.

“What we did see in the results and which we should continue to see into 2025 is management’s strong push to reduce costs in order to continue to grow profitability at a higher pace than top-line growth, not easy in a high operating leverage industry,” commented Scotiabank analyst Maher Yaghi.

Despite these challenges, Telus is well-positioned for continued success. Its extensive fiber network, ongoing investments in 5G, and focus on customer experience give it a strong foundation for future growth.

Telus’s commitment to expanding its fiber network, despite the complexities of its wholesale model, highlights the company’s dedication to providing Canadians with access to high-speed internet. As 5G technology expands and demand for digital services continues to grow, Telus’s investments will be crucial in shaping the future of Canada’s digital landscape.

Telus’s Wholesale Model: Bridging Canada’s Digital Divide?

In a landmark decision, the Canadian Radio-television and Telecommunications Commission (CRTC) has authorized Canada’s largest telecom companies to resell internet service in areas lacking fibre infrastructure. This ruling, hailed by Telus CEO Darren Chen as “conclusively, in the best interest” of Canadian consumers and businesses, particularly small enterprises, has ignited debate within the telecommunications sector.

A Controversial Ruling

While Telus celebrates the CRTC’s decision,arguing it will accelerate fibre deployment and bridge the digital divide,BCE Inc., parent company of Bell Canada, vehemently opposes it. BCE CEO Mirko Bibic expressed concerns that allowing incumbents to resell services from each other could dampen investment in new infrastructure. “We are not in the business of building fibre for Telus’s benefit,” Bibic stated, announcing plans to scale back Bell’s fibre network expansion in response to the ruling.

“noting that Bell is ‘not in the business of building fibre for Telus’s benefit,’ Bell CEO Mirko Bibic‍ announced last week that his company ⁣would further‍ scale back the buildout of its fibre internet network as of the ruling.

Telus’ Continued Expansion Plans

Undeterred by the controversy, Telus remains committed to its fibre expansion strategy. “As long as the current model is maintained, Telus ‘will continue to build fibre in ⁢Canada,'” Chen assured. He highlighted ongoing projects in Alberta, British Columbia, and parts of Quebec, emphasizing Telus’ focus on economically viable areas. Telus has already launched fibre services in Ontario and Quebec under the wholesale regime, with plans to extend coverage to the Atlantic provinces.

Looking Ahead: A lasting Future for Canada’s Internet?

The CRTC’s decision marks a significant turning point in Canada’s internet landscape. “We recognize the competitive pressures in the industry,” acknowledged Chen, “But we believe that by investing in our network and offering innovative products and services, we will continue to be a leader in the canadian telecommunications market. We’re committed to being the catalyst for digital advancement across the country, and that starts with providing accessible and reliable high-speed internet to all Canadians.”

This wholesale model raises crucial questions about the future of competition and investment in Canada’s telecommunications sector. Will this approach truly narrow the digital divide and foster innovation,or will it create a less competitive market with possibly slower progress on fibre deployments?

The coming years will be crucial in determining the long-term impact of this decision.

How might Telus’s wholesale model impact the pace and scope of fibre optic infrastructure deployment in Canada?

Telus’s Wholesale Model: Bridging Canada’s Digital Divide?

In a landmark decision, the Canadian Radio-television and Telecommunications Commission (CRTC) has authorized Canada’s largest telecom companies to resell internet service in areas lacking fibre infrastructure. This ruling, hailed by Telus CEO Darren Chen as “conclusively, in the best interest” of Canadian consumers and businesses, particularly small enterprises, has ignited debate within the telecommunications sector.

A Controversial Ruling

While Telus celebrates the CRTC’s decision,arguing it will accelerate fibre deployment and bridge the digital divide,BCE Inc., parent company of Bell Canada, vehemently opposes it. BCE CEO Mirko Bibic expressed concerns that allowing incumbents to resell services from each other could dampen investment in new infrastructure.“We are not in the business of building fibre for Telus’s benefit,” Bibic stated, announcing plans to scale back Bell’s fibre network expansion in response to the ruling.

“noting that Bell is ‘not in the business of building fibre for Telus’s benefit,’ Bell CEO Mirko Bibic‍ announced last week that his company ⁣would further‍ scale back the buildout of its fibre internet network as of the ruling.

Telus’ Continued Expansion Plans

Undeterred by the controversy, Telus remains committed to its fibre expansion strategy. “Provided that the current model is maintained, Telus ‘will continue to build fibre in ⁢Canada,'” Chen assured. He highlighted ongoing projects in Alberta, British Columbia, and parts of Quebec, emphasizing Telus’ focus on economically viable areas. Telus has already launched fibre services in Ontario and Quebec under the wholesale regime, with plans to extend coverage to the Atlantic provinces.

Looking Ahead: A lasting Future for Canada’s Internet?

The CRTC’s decision marks a significant turning point in Canada’s internet landscape.”We recognize the competitive pressures in the industry,” acknowledged Chen, “But we believe that by investing in our network and offering innovative products and services, we will continue to be a leader in the canadian telecommunications market. We’re committed to being the catalyst for digital advancement across the country, and that starts with providing accessible and reliable high-speed internet to all Canadians.”

This wholesale model raises crucial questions about the future of competition and investment in Canada’s telecommunications sector. Will this approach truly narrow the digital divide and foster innovation,or will it create a less competitive market with possibly slower progress on fibre deployments?

The coming years will be crucial in determining the long-term impact of this decision.