2004 Canadian telecom summit. Darren Entwistle member of the TELUS Team

Transcription

1 2004 Canadian telecom summit Darren Entwistle member of the TELUS Team

2 tracking against strategic imperatives build national capabilities 2. provide integrated solutions 3. focus on growth markets of data & wireless 4. going to market as one team 5. partner, acquire & divest as necessary 6. invest in internal capabilities to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move

3 3 national transformation Communications Ont/Que cities Co-locations Customer POPs Fibre lit (km) Platform Network Jan Stentor Circuit-based Mar ,600 TELUS Next Generation (NGN) NGN delivers enhanced customer data & IP services and operational cost savings

4 4 national wireless transformation Mobility PoPs covered (millions) Mike (iden) (millions) Technology / Generation Jan G Mar G key to driving profitable growth subscribers have tripled to 3.5 million operating earnings have quintupled to $884 million

5 global telecom performance EBITDA 1 % growth rates BT PSSW Sprint Aliant BLS VZ SBC AT&T Telia FT DT KPN TELUS MTS Telstra Nippon BCE As at March 1, 2004 (0.3) (2) (2) (3) (5) (6) Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 results Other results provided by Bloomberg, company, and analyst reports (14) (18)

6 global telecom performance 94 Cash Flow (EBITDA 1 - Capex) % growth rates BT VZ AT&T SBC TELUS FT Telia DT MTS Sprint FON BCE KPN Aliant Nippon BLS Telstra PCCW As at March 1, 2004 Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 results Other results provided by Bloomberg, company, and analyst reports (0.1) (4) (16) (24)

7 7 2004E global telecom performance projected EBITDA % growth rates VZ PCCW KPN SBC BLS AT&T TELUS FT DT MTS Sprint Aliant Telstra BCE BT Nippon Telia (0.4) (1) (1) (6) (8) As at April 30, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports (20)

8 8 2004E global telecom performance projected Cash Flow (EBITDA - Capex) % growth rates BT MTS VZ PCCW KPN SBC BLS AT&T TELUS Aliant Telia FT Sprint BCE Telstra DT Nippon (1) (1) (3) (3) (6) (9) (10) As at April 30, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports (28)

9 wireless customer satisfaction = low disconnects Q1-04 monthly % churn rates AWE PCS Microcell Cingular Rogers Verizon Nextel TELUS BCE TELUS Mobility lifetime customer revenue $3,800

10 10 customer service improvements Service Indicators Exceeded CRTC standard 1 Service Provisioning Repair Service Local Service Directory Services Complaints 1 company report on 19 CRTC quality of service indicators and standards for March 2004 TELUS setting new historical records in customer service

11 11 challenges in the marketplace timeliness of decisions market is changing at incredible pace customers demand benefits of new technologies - like IP - instantly ability to deliver innovative services tied to timely regulatory decisions competitors are largely unregulated turnaround time for decisions must improve

12 12 challenges in the marketplace consistent application of policies TELUS & other ILECs invested in infrastructure based on facilities-based competition policy subsequent regulatory actions create uncertainty need to set policy, then stay the course

13 13 challenges in the marketplace lost opportunities delay and indecision have a price deferral account example: roughly $800 million nationally CRTC process could add two more years Broadband Task Force = $1billion to bridge digital divide TELUS proposal addresses divide industry & CRTC must work together to change

14 challenges in the marketplace disruptive nature of VoIP technology VoIP more than new way to deliver POTS decouples service from underlying transport multiple VoIP flavours challenge traditional regulatory approaches business challenge deliver promise of IP regulatory challenge treat all competitors equally 14

15 15 a transformation strategy key performance indicators focus on essentials compliance and enforcement don t favour or disadvantage particular competitors adapt to disruptive change

16 16 a transformation strategy key performance indicators tariffs competitive disputes one issue proceedings multi-issue proceedings 45 days 90 days 180 days 365 days

17 17 a transformation strategy focus on essentials establish strategic regulatory imperatives set priorities identify and eliminate what is no longer necessary re-deploy resources to accomplish mission critical activities

18 18 a transformation strategy compliance and enforcement punish the bad apples; don t constrain the good guys increased competition = increased pressure to rely on market discipline everyone incented to comply, if enforcement measures are strong CRTC needs right compliance tools and authority

19 19 a transformation strategy don t favour or disadvantage particular competitors trend to favour competitors, not competition undermines sustainable competition regulatory objective should not be generating regulated margin for our competitors CLECs don t need TELUS customers to finance their growth

20 20 a transformation strategy adapting to disruptive change VoIP regulatory framework VoIP services don t fit traditional regulatory boxes CRTC should use wireless approach did not regulate providers in nascent marketplace TELUS should be able to compete in VoIP on equal footing with others

21 21 a transformation strategy adapting to disruptive change local market forbearance time for clarity what is target market share loss? consider local telephone service substitutes competition increasing rapidly; need regulator ready to act

22 thank you