Canadian
Telecommunications
David Lee
Jeremy Ma
Raymond Xie
Saurabh Suryavanshi
Contents

Canadian Telecommunications Industry

Manitoba Telecom Services (MBT-T)

Rogers Communications (RCI.NV.B-T)

TELUS Corporation (T-T)
Industry Characteristics
Telecommunications Industry
Industry Overview

Communications Services Industry
•
•
•
•

Wired telecommunications (5171)
Wireless telecommunications (5172)
Resellers, Satellite, Other services (5173, 5174, 5179)
Cable and other program distribution (5175)
Major companies
•
•
•
•
•
•
Bell Canada Enterprise (BCE,)
Aliant (AIT, 53% owned by BCE)
Bell Nordiq (BNQ, 63% owned by BCE, IT)
TELUS (T)
Rogers Communications (RCI.NV.B, 86% owned
by E. S. Rogers)
Manitoba Telecom Services (MBT)
Industry Key Players
Wireless & Paging
$9.5 Bilion
Wired Line
Long Distance
Internet / Data
$23.3 Billion
2004 Revenue
Communications
$40.0 Billion
Resellers & Others
$1.3 Billion
Wired Cable
DTH/MDS
$5.9 Billion
Market Segment
Revenue, 1998-2004
Market Segment
Subscribers, 1998-2004
Industry Characteristics

Large contribution to economy
•
•

Highly capital intensive
•

Effective cap-ex management and allocation (Long term)
Saturated market
•
•
•

$40.0 billion (2004), $24.8 billion of revenue (1997 constant $)
2.4% of total Canadian GDP
Increasing unit revenue  Service development capability
Reducing costs Organizational efficiency
Market penetration  Marketing as a key factor
Blurred Boundaries with Cable industry
•
•
Traditionally tough regulations greatly reduced
Cablecos with VoIP vs.Telcos with IPTV  Strategic position
Industry Characteristics
Wireline Communications Services
Wireline Communications
Segment Overview

ILECs: Incumbent Local Exchange Carriers
•
•

CLECs: Competitive Local Exchange Carriers
•
•
•

Allowed in 1997, if registered with CRTC
However, hard to compete with ILECs
Allstream (acquired by MTS), Call-Net (Sprint), ExaTel, EastLink
Resellers
•
•

Used to be regional monopoly with own network
BCE, TELUS, MTS, SaskTel, Aliant, NorthwesTel
Rent networks from ILECs or CLECs
Marketing with competitive rates more actively with Long Distance
Competition between BCE & TELUS
•
•
Since 2000, TELUS expanding to eastern Canada to become No. 2
BCE reacting to successfully expand to western Canada
Wireline Communications
Telecommunications Carriers
•
TELUS to East / BCE to West since 2000
Wireline Communications
Competitive Landscape

Wireline Local Services
•
•
•
ILECs dominating the market 97.3%
CLECs not able to compete with ILECS
Gradually declining due to



Customer migration to wireless
Reduced demand of 2nd phone line
Wireline Long Distance Services
•
•
•
•
ILECs monopoly eliminated in 1992
CLECs and resellers effectively competing with over 26% share
Rapidly shrinking with revenue $5.5 B in 2004
Alternative communications replacing the service



Wireless and text messaging (SMS)
Email, Instance messaging & Voice chatting
Internet and cable telephony (VoIP)
Wireline Communications
Local & Long Distance Revenue, 1993 - 2004
Wireline Local & Long Distance Revenues
1993 - 2004
$ Billions
16.0
14.0
12.0
10.0
$7.9
$7.7
$5.1
$5.4
$5.9
1993
1994 1995 1996
Local services
$7.9
$8.7
$8.4
$8.7
$8.7
$7.1
$6.7
$6.5
$5.9
$6.9
$7.3
8.0
6.0
4.0
2.0
$6.4
$5.3
$6.5
$6.5
$6.9
$6.8
1998
1999 2000 2001 2002
Long distance services
2003
1997
* 1997 local services decrease is due to survey method change
Source: CRTC data collection
Wireline Communications
Wired Access Lines, 1993 - 2004
Wired Access Lines
1993 - 2004
Million Lines
25.0
20.0
15.0
5.9
6.2
6.6
7.2
7.6
7.4
7.2
7.3
7.1
5.1
5.4
5.7
11.6
11.8
12.0
12.2
12.2
12.4
12.7
13.2
12.8
12.8
12.7
12.5
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
10.0
5.0
-
Residential line
Source: CRTC data collection
Business line
Industry Characteristics
Wireless Communications Services
Wireless Communications
Segment Overview

Dominated by Big 3
•
•
•

Profitability
•
•
•

Rogers & Microcell 35.3%
TELUS Mobility 29.4%
Bell Mobility 27.2%
Extreme competition lead by Microcell until early 2002
With declining ARPU, industry recorded deficit in 2000, 2001
Rogers leading the market after its Microcell acquisition in 2004
Spectrum & Technology
•
•
•
Most Spectrum auctioned in 2001 ($1.5 B)  BCE, Rogers, TELUS
Most carriers completed 2.5G (1X CDMA or GSM/GPRS)
Bell & Rogers leading 3G transition  Important for service
development (Increased ARPU, marketing)
Wireless Communications
Revenue & ARPU, 1999 - 2004
Wireless Service Revenues & ARPU
1999 - 2004
Revenue
$ Billions
ARPU ($)
12.0
70.0
$59.3
10.0
$53.9
$53.8
$51.0
$55.7
60.0
$47.4
50.0
8.0
Industry deficit
40.0
6.0
$9.5
4.0
2.0
$7.2
$5.4
$4.6
30.0
$8.1
20.0
$6.0
10.0
-
1999
2000
2001
Wireless Service Revenue
Source: CRTC data collection
2002
2003
2004
ARPU
Wireless Communications
Wireless Technology
Base
2.5G
3G
(Advanced Data & Voice)
(348 kbps – 2 Mbps)
Bell Canada
CDMA
1XRTT (CDMA2000)
30 – 55 kpbs
TELUS
CDMA
1XRTT (CDMA2000)
30 – 55 kpbs
Rogers
GSM
GSM/GPRS
20-40kbps
Cover 93% population
Microcell
GSM
GSM/GPRS
20-40kbps
Aliant / MTS /
Sasktel
CDMA
1X network
1X EV-DO (urban
area)
Up to 700 kbps
EDGE (July2004)
Up to 130 kbps
Industry Characteristics
Internet & Data Services
Internet & Data Services
Segment Overview

Large Telcos & Cablecos
•
•
•
•

CLECs and Resellers
•
•
•

Able to utilize existing telephone and cable line
Telephone access line: 20 million
Wired cable line: 10.7 million (76.5% households)
Requires minor modification and modem
Usually provide services on rented network basis
Compete based on the rate
Offer additional services (web hosting, long distance service …)
Market Share & Trend
•
•
•
•
•
Dial-up: 27.2%
Digital Subscriber Line (DSL): 34.4%
Cable line: 39.4%
DSL & Cable line consistently increasing
Satellite and Wireless internet services starting to grow
Internet & Data Services
Subscribers, 2000-2004
Internet Service Subscribers
2000 - 2004
Thousands
3,500
3,000
2,500
2,933
2,969
2,483
2,025
2,000
1,500
943
1,000
500
412
0
2000
2001
Dial up
2002
Cable
2003
2004
DSL
Internet & Data Services
Market Share, 2003
No. 2
No. 3
No. 1
No. 4
Industry Characteristics
Margin & Network Investment
Telecommunications
Operating Margin, 1997-2004
Telecommunications
Operating Margin, Cap-Ex, 1998-2004
High speed Internet
2.5G
Telecommunications
Wired & Wireless Subscribers, 1998-2004
Industry Characteristics
Telcos (IPTV) vs. Cablecos (VoIP)
VoIP vs. IPTV
Technology Overview

VoIP: Voice over Internet Protocol
•
•
•
•

IPTV: Internet Protocol Television
•
•
•
•

Stable technology with satisfactory Technology
Requires relatively small bandwidth
Uses public Internet network
In service by major Cable companies (Shaw, Rogers)
New technology developed by Microsoft
Requires broad bandwidth
Technologically advanced compared to traditional digital TV
Showing fast penetration (MTS 18% in less than 2 years)
Competitive Implication
•
•
•
Telcos & Cablecos compete head to head
20 – 25% of each market expected to be lost
More impact on Telecoes than Cablecos
VoIP vs. IPTV
Impact on Competition between Cablecos & Telecos
Telcos’ Exposure
Cablecos’ Exposure
Other
services,
56.6%
Wireline
services,
43.4%
Other
services,
27.7%
Cable
services,
72.3%
Manitoba Telecom
Jeremy Ma
Table of Contents
Company Overview
 Company Analysis
 Financial Analysis

MTS Extensive fibre optic network: spans more than 24,300 km.
Company Overview


Third largest telecommunication provider in Canada
Operate through two divisions: national and
Manitoba division
Manitoba Telecom
ALLSTREAM (National) Division
National e-business / communication
solution provider
MTS (Manitoba) Division
Provide Voice, Data, Video to
residential and business
customers in Manitoba.
MTS History

1997 Manitoba Telecom Service became a public traded company

1999 Strategic alliance with Bell

2000 Initiate broadband service in Manitoba

2004 End strategic alliance with Bell in Western Canada

2004 Acquired Allstream ($1.6 billion) and become the 3rd largest national
telecom provider in Canada

2004 MTS Allstream strategic alliance with BT: broaden its IP based
technology service globally

2005 MTS Allstream acquired Delphi Solutions Corp.

2005 Pierre Blouin named new Chief Executive Officer of Manitoba Telecom
Services Inc. and MTS Allstream Inc.
Company Overview
Management Team
Pierre Blouin CEO 2005~




a seasoned telecommunications executive, who spent 20 years + at BCE Inc.
2003 ~ 2005 Group President, Consumer Markets, Bell Canada
2002 ~ 2003: CEO of BCE Emergis
2000 ~ 2002President and CEO of Bell Mobility
Wayne S. Demkey, CA CFO 2001~


Joined MTS since 1996.
11 years as senior managers at KPMG
Kelvin A. Shepherd, P.Eng. President, MTS (Manitoba) 2006~


CTO of MTS 2000 ~ 2005
20 years with Saskatchewan Telecom
John A. MacDonald President, MTS (ALLSTREAM) 2002 ~


CEO of Leitch Technology Corp.
Executive Vice President, CTO, COO, President of Bell Canada 1994 ~ 1999
Compensation
Operation Analysis
Revenue Breakdown (2005)
10%
5%
34%
23%
Data
Local
Long Distance
Wireless
Other
28%
Company Analysis
MTS Manitoba
Leading telecom co. in Manitoba:
Voice, Data, and Video
Competitive Landscape
in Manitoba
Home
Phone
MTS
Telus
Rogers BCE
Shaw
O
X
O
O
X
(Internet
Phone)
(Internet
Phone)
Wireless O
O
O
X
X
TV
O
X
X
X
O
Internet O
X
O
X
O
Bundle
X
X
X
O
O
MTS Manitoba
MTS Manitoba continues to dominate
Manitoba market even though it had
faced competition from Rogers, Telus,
and Shaw.
 How has MTS remained dominant?

MTS Manitoba
Preemption Strategy: MTS Bundles
Objectives
 Preempt cable triple play
 Increase subscriber spending
 Cross-selling
Strategy
 Full service: voice, data, and video
 Attractive pricing (Bundle Pricing)
 Competitive against cable
Preemption Strategy
MTS
Strategy
Offer triple play 3 years before cable telephony
Pricing
$20
Content
23
Marketing
Triple
~ $52/month
Save $10 for two bundles
Save $20 for 3 bundles
basic channels
140 channels in 26 groups
Games and VOD (Video On Demand)
play: “Three Choices, Three Bucks,
Three Charities.”
Choice
Results
Steadily gaining market share in
wireless, TV, and high-speed internet.
 Increase its revenues and customer
base by cross-selling

Shaw Fight Back!
 Introduced its bundle packages in July
2005
MTS Manitoba
Operation Performance
Residential Local Line
Wireless Customers
Shaw launched
bundle program
460000
450000
400000
300000
440000
200000
430000
100000
420000
410000
2004Q1
2004Q3
2005Q1
2005Q3
0
2000
High Speed Internet
150000
2001
2002
2003
2004
2005
MTS TV (Customer Base)
Customer Base
60000
50000
100000
40000
30000
50000
20000
0
2001
2002
2003
2004
2005
10000
0
2002
2003
2004
2005
MTS (Manitoba)
Phone Service
Wireless
Internet
TV
Data and Directory
?
Security & Alarms
?
Overall
History of Allstream

1846 Montreal and Toronto Magnetic Telegraph Co. established

1846~ 1992 merger & acquisition  Change name to Unitel

1992 Enter Long distance market

1996 Unitel  AT&T Canada Long Distance Services

1999 Enter IT service; first to offer MPLS-IP VPNs in Canada

1999 Enter local phone service; reached 100,000 local business lines

2003 Allstream brand launched

2004 MTS acquired Allstream

2005 Acquire Delphi Solution Corp.
Today’s Allstream
Core Business
 Provide specific or integrated e-Business solution to business
clients
Target market
 midsized to large size enterprise business, as well as the
public sector
Market Segment (by industry)
 Financial
 Government
 Manufacturing
 Healthcare
 High-Tech / Telecom
 Energy
ALLSTREAM (National) Division
Product Portfolio
Allstream Client Base
….and many many more Canadian enterprises
have chosen Allstream for e-business solution
Allstream E-business solution:
What is it?
How does it work ?
E-business Solution
Network + Application = Solution
Customer
Solution
Customer
Solution
Customer
Solution
Customer
Solution
HEALTHCARE
TRANSPORTATION
Vertical Applications for
Community of Interest
Vertical Applications for
Community of Interest
Customer
Solution
Configured for
Customer
REPEATABLE TECHNOLOGY (Tool Set)
• RFID
• XML Networking
• Grid Computing + Storage
• Identity Management
• Voice Biometrics
• XOIP
Issues
• Clean IP Transport
• Ubiquitous High – Speed Affordable Access
• Storage
•
•
•
•
Security
“Write once, run everywhere” Capability
Quality of Service
Web 2.0
E-business Solution
RFID (Radio frequency identification) Tag
Solution Innovation
RFID (Radio frequency identification) Tag
ALLSTREAM (National) Division
Retail Application
Allstream positions itself as market leader in
terms of its innovated IT technology
Market Leader
= Sound Financial Results?
NOT Necessary!!!
Allstream Going Down!
Recent Development
 Revenues from legacy services (such as long
distance, local, frame relay, and private line
data service) deteriorate as telecom
technology continues to evolve.

More and more business prefer much
cheaper 2nd generation network and IP
services.

Allstream’s ex-partner/shareholder, Rogers
and AT&T, turn against Allstream by pulling
business out of Allstream.
Allstream Going Down!
MTS Allstream
1500
1299.4
1154.2
1115.1
1000
Revenue
500
0
257.4
2003
216.1
2004
194
2005
EBITDA
Allstream

No detailed information available to
analyze its operation

MTS has claimed that Allstream
continues to gain market share in
Canada IT service industry  implies
that Allstream gained market share by
sacrificing its margins.

Face competition from incumbent and
new market entrants
MTS Allstream
Strategies to Stop the Bleeding

Allstream: Focus more on profitable
segments and IP data services “which
have solid profitability margins and
significant growth potential.”

Transition Phase II, an aggressive
program to cut costs, refine market
focus and service portfolio

Comprehensive CEO Business Review
Financial Statements
Financial Statement
Income Statement
Revenue
Cost of Sales
Gross Margin ($)
Gross Margin (%)
Dec-05
2017.2
1335.1
682.1
33.81%
Dec-04
1524.9
921.1
603.8
39.60%
Dec-03
858.5
410.6
447.9
52.17%
Dec-02 Dec-01
927.3 1002.994
507.2 635.019
420.1 367.975
45.30% 36.69%
Dec-00
822.265
461.324
360.941
43.90%
Dec-99
741.919
417.098
324.821
43.78%
Dec-98
636.196
322.233
313.963
49.35%
Depreciation & Amort.
Other Expenses
Operating Income
Operating Margin
317.8
61.9
302.4
14.99%
280.1
5.5
318.2
20.87%
224.5
5.1
218.3
25.43%
224.4
10
185.7
20.03%
226.19
0
141.785
14.14%
195.599
190.107
184.953
165.342
20.11%
134.714
18.16%
129.01
20.28%
Interest Expense
60.8
47.8
Other Expenses (Income) (3.00) (155.90)
Income Before Taxes
244.6
426.3
EBT Margin
12.13% 27.96%
33.2
27.90
157.2
18.31%
29.5
(71.90)
228.1
24.60%
24.979
0.23
116.577
11.62%
25.589
(10.71)
150.464
18.30%
29.947
(12.33)
117.093
15.78%
34.055
(15.32)
110.274
17.33%
Income Taxes
Income After Taxes
Net Profit Margin
30.9
213.7
10.59%
121.2
305.1
20.01%
71.6
85.6
9.97%
71.6
156.5
16.88%
63.482
53.095
5.29%
56.143
94.321
11.47%
27.005
90.088
12.14%
14.9
95.374
14.99%
Non-controlling interest
0
Total Net Income
213.7
Basic Earnings Per Share 3.16
Diluted Earnings Per Share 3.14
EPS (Continuing Operations)2.74
Dividends Paid per Share 2.60
0
305.1
4.31
4.27
2.47
1.15
0
85.6
1.36
1.35
1.83
0.91
5.999
162.5
2.53
2.51
1.74
0.79
20.59
73.7
1.14
1.13
1.73
0.76
6.225
100.5
1.55
1.54
1.74
0.38
3.843
93.931
1.34
1.34
0
95.374
1.36
1.36
0.68
0.68
Financial Statement
Balanced Sheet
Dec-05 Dec-04
Assets
Current Assets
Cash and Equivalents
Short Term Investments
Accounts Receivable
Inventories
Other Current Assets
Total Current Assets
Dec-03
Dec-02
Dec-01
Dec-00
Dec-99
Dec-98
0
0
216.3
0
160.4
376.7
31.6
0
212.7
0
160.9
405.2
0
404.6
82.7
0
26.9
514.2
0
0
93.8
0
20.7
114.5
23.218
0
195.6
0
24.261
243.08
113.61
0
150.04
0
19.652
283.3
152.21
0
88.723
0
13.056
253.99
132.03
1507.6
1002.7
97.2
2984.2
1448.1
1023.4
87.4
2964.1
1065
73.1
30.7
1683
1060.7
412.7
31.4
1619.3
1289.2
97.932
31.758
1661.9
1110.6
62.869
11.356
1468.2
1022.6
31.804
12.984
1321.4
1030.9
29.468
11.115
1311
365.6
160.4
64.1
590.1
412.6
62.2
50
524.8
187.5
143.5
30.5
361.5
178.4
11
35.6
225
352.87
28.357
25.207
406.43
231.8
0
23.303
255.1
176.66
25.321
24.045
226.03
156.62
80
34.417
271.03
Long Term Debt
Other Liabilities
Total Liabilities
848.1
116.2
1554.4
896.2
158.5
1579.5
386.3
47.7
795.5
461.31
44.3
730.61
316.31
137.07
859.81
329.67
101.53
686.3
305.75
62.493
594.27
287.84
41.285
600.15
Shareholders' Equity
Preferred Equity
Common Equity
Contributed Surplus
Retained Earnings
Shareholders' Equity
Total Liab. & Equity
0
1315
18.2
96.6
1429.8
2984.2
0
1309.5
16.1
59
1384.6
2964.1
33
552.5
3.4
299.8
888.7
1683
32.96
558.41
0
297.28
888.65
1619.3
185.87
411.39
0
204.88
802.14
1661.9
185.87
410.64
0
185.37
781.87
1468.2
185.87
427.92
0
113.34
727.12
1321.4
0
400.23
0
310.59
710.82
1311
Net Fixed Assets
Other Long Term Assets
Goodwill and other intangible assets
Total Assets
Liabilities
Current Liabilities
Accounts Payable
Short Term Debt
Other Current Liabilities
Total Current Liabilities
94.234
0
13.256
239.52
Cash Flow
Dec-05 Dec-04 Dec-03 Dec-02 Dec-01 Dec-00 Dec-99 Dec-98
Operating Activities
Net Income (Loss)
213.7
Depreciation & Amort.
317.8
Future Income Taxes
51.2
Operating (Gains) Losses
-144
Changes in Working Capital
(Increase) Decrease in Other Working Capital
-8.5
Net Cash from Operating Activities
430.2
305.1
280.1
69.7
-281.9
85.6
224.5
-3.4
-4
162.5
224.4
-4.4
-104.8
-10.5
362.5
22
324.7
-67.9 76.316 -9.342
209.8 293.37 287.29
-342.4
-18.6
8.1
1.7
-351.2
-278.3
-227.4
-8
639.5
125.8
-208.1
-1.6
-80
1.7
-288
-222.2 -380.61 -270.25 -169.36
0
0
0
0
0
0
-81.3 -26.924 -5.274 -6.437 -175.13
1.6
-0.13 -0.464 0.144 -0.483
-301.9 -407.67 -275.99 -175.65 -175.61
Financing Activities
Issuance of Capital Stock
4.9
Repurchase of Capital Stock
0
Debt Increase (Decrease)
47.9
Dividends
-175.9
Other Financing Charges, Net
2.6
Net Cash from Financing Activities
-120.5
Net Change in Cash & Cash Equivalents -41.5
15.4
-800.8
427
-90.8
-3.1
-452.3
36
1.9
-30.8
57
-59.1
-0.5
-31.5
5.2
Investing Activities
Capital Expenditure
Acquisitions
Investments
Other Investing Changes Net
Net Cash from Investing Activities
9
-24.7
127.6
-52.6
0
59.3
-32.8
73.685 100.55 93.931 95.374
226.19 195.6 190.11 184.95
-26.114 33.118
0
0
-56.706 -32.636 4.552 -10.622
64.508
-6.502
15
-49.099
0
23.907
-90.389
60.174
-59.501
-1.402
-49.17
0
-49.899
-38.605
27 22.312
315.8 292.02
341.12 0.234
-364.61
0
-36.766 -17.47
-47.963 -47.603
0
0
-108.23 -64.839
31.923 51.567
MTS Pro Forma Financial
Performance
MTS
2500
2127.7
2000
2010.6
2017.2
1500
1000
Revenue
701.8
675.8
620.2
EBITDA
500
0
2003
2004
2005
*pro forma results,
i.e.Assume Allstream acqu.
took place on Jan 2003
Sustainability of Dividend Payout
Adjusted FCF Forecast
Retained Earnings
Dec-05 Dec-04 Dec-03 Dec-02 Dec-01 Dec-00
Retained earnings, beginning of period
59
298.6
295 204.9 185.4 175.87
Net Income for the period
213.7
305.1
85.6 162.5
73.7 100.5
Dividends
(176.10) (119.00) (59.10) (52.60) (49.10) (49.20)
Purchase of outstanding shares
- (425.70) (22.90) (18.80) (5.10) (41.90)
Retained earnings, end of period 96.6
59 298.6
295 204.9 185.4
Fisher’s Valuation Approach
Superiority in production,
marketing, research and
financial skills – less attractive
 Well-managed: ?
 No cash; RE ↓; quick ratio < 1
 Satisfied production and
services
 Marketing Strategy: ?
The people factor – Less Attractive

Experts in integrated service

strong in leading the
technological innovations
Investment characteristics of
some businesses – Moderate
Attractive
 License requirements
 High entry barrier
 High competition
The price of investment – Attractive

low price now at $37.09

52 week range: 36.61 ~ 49.90

Dividend Yield: 7.01%
Recommendation: Sell
Stock Performance
Current Dividend Yield: 7.01%
Recommendation
Mad Money
Sell
!!!
ROGERS
AGENDA
• Company’s History
• Company’s Structure
• Rogers Wireless
• Rogers Cable
• Rogers Media
• Rogers Telecom
• Management
• Financial Statements
• Stock performance & company’s strategy
• Recommendation
History - The Beginning
• 1925 - Mr. Rogers, Sr. invented the world’s first alternating
current (AC) radio tube.
• 1931 - Mr. Rogers, Sr. was awarded an experimental TV
license.
• 1939 - Mr. Rogers, Sr. died at the young age of 38. He left
a widow, Velma, and a 5 year old son, Edward.
The New Era - The Beginning
•
1956 - Ted Rogers earned his Bachelor of Arts
from the University of Toronto.
•
1961 - Ted Rogers was awarded an LL.B. in 1961
from Osgoode Hall Law School.
•
1961 – 62 - Mr. Rogers started Rogers Radio
Broadcasting Limited
•
1967 - Awarded licenses for Cable business for
areas in and around Toronto, Brampton and
Leamington.
The Growing ERA….!!!!
• 1974 - the first cable company to expand past 12 channels
• 1979 - Mr. Rogers’ company, Rogers Cable TV Limited,
acquired control of Canadian Cable systems Limited.
• 1980 - Rogers purchased Premier Communications Limited.
•1979 to 1982 - Acquired and built a number of cable
television systems in the United States.
• 1989 - Rogers Communications completed the sale of its
U.S. cable television interests for CDN $1.581 billion.
• 1989 - Rogers Communications Inc. acquired 40% of Unitel
Communications, formerly CNCP Telecommunications.
The ERA of Diversification!!
• 2000 - Rogers Communications Inc. acquired the Toronto Blue Jays
Baseball Club.
• 2001 - Rogers Media acquired Sportsnet, and renamed Rogers Sportsnet
• 2004 - Acquired Rogers Centre 2004 - Rogers acquired the 34% of Rogers
Wireless owned by AT&T Wireless Services Inc.
• 2004 - Rogers Wireless acquired Microcell Telecommunications Inc.
• 2004 –05 - Rogers Communications repurchased the shares of Rogers
Wireless.
• 2005, July – Rogers introduces Rogers Home Phone voice-over-cable local
telephony service
•2005, July – Rogers successfully completed the acquisition of Call-Net
Enterprises Inc. (now Rogers Telecom Holdings Inc.), a national provider of
voice and data communications services.
ROGERS COMMUNICATIONS INC
ROGERS
WIRELESS
• Rogers Wireless.
• FIDO Inc.
• FIDO Solutions Inc.
ROGERS
CABLE
• Rogers Cable
Communication
Inc.
• Rogers Wireless
Alberta Inc.
• Wireless payment
Services (33.33%) Subsidiaries
• Inukshuk Internet
Inc.
ROGERS
MEDIA
• Blue Jays Hold co
Inc.
• Rogers
Broadcasting
Business
ROGERS
TELECOM
• Formerly
Call-Net
enterprises.
• Rogers
Telecom.
• Rogers Publishing
Limited
Investments
• 16.5% in Cogeco Cable
Inc.
• 21% in COGECO Inc.
Revenue & Operating Profit!!
In Millions of Dollars
2001
2002
2003
2004
2005
Revenue
Operating Profit
Operating Profit Margin
3912.7
952.6
24.3%
4323.1
1141.6
26.4%
4791.9
1448.9
30.2%
5608.3
1734.2
30.9%
7482.1
2143.5
28.6%
Revenue Contribution 2005
4%
15%
53%
28%
Wireless
Cable
Media
Telecom and others
Operating Profit Contribution 2005
6%
33%
61%
Wireless
Cable
Media
ROGERS WIRELESS
• Provides Wireless voice and data communication services.
• Largest Canadian Wireless Communications Service provider.
• Canada’s only carrier operating on the world standard
GSM/GPRS technology platform.
• Provides Coverage to approximately 93% of Canada’s
population.
• Customer base of 6.138 million wireless voice and data
subscribers.
• Wireless penetration rates among the lowest in the developed
world.
• 1.3 million subscribers added through the acquisition of
MICROCELL.
Sources of Revenue
• Post paid voice and data
• Monthly Fees
• Airtime and long distance charges
• Optional Services charges
• System access fees
• Roaming Charges
• Prepaid revenues generated principally from charges
for airtime, long distance and text messaging.
• One way messaging or paging – Monthly fees and
usage charges.
• Sale of hardware and accessories and equipment
activation fees.
Expenses
• Cost of equipment sales.
• Sales and marketing expenses.
• Advertisements
• Commissions
• Remuneration and benefits to employees.
• Operating, general and administrative expenses.
• Expense to service existing relationships.
• Retention costs.
• Inter-carrier payments.
• Long distance carrier payments.
Revenue and Operating Profit
5000
Million ($)
4000
3000
2000
1000
0
2001
2002
Revenue
In Millions of Dollars
Revenue
Operating Expenses
Operating Profit
Operating Profit Margin
2003
2004
2005
Operating Profit
2001
2002
2003
2004
2005
1753.1
1341.2
411.9
23.5%
1965.9
1438.2
527.7
26.8%
2207.8
1480.2
727.6
33.0%
2783.5
1833.1
950.4
34.1%
4006.1
2669.5
1337.1
33.4%
Risks
• Fierce and Substantial Competition
• Price War could affect churn rate and revenue growth.
• Since Technology dependent, may not meet the
expectations.
• Changes in the Wireless Communications Industry.
• Risks attached with the acquisition of MICROCELL.
• Inability to enhance systems or a system breach in future
• Dependent on infrastructure and handset vendors.
• High Capital requirements.
• Restriction on the use of wireless handsets while driving.
• Business subject to government regulations.
ROGERS CABLE
• Largest cable television company in Canada.
• Services include:
• Analog and Digital Cable
• Residential and Commercial internet services
• Data and Internet products to business customers.
• Rogers Video – DVD, Video Cassette, Video Games
• Distribution network includes extensive network including
wireless independent dealer networks, wireless stores, Rogers
video, retail chains like RadioShack, Future Shop & Best buy.
• Ontario comprises for 90% of the total cable subscribers.
• New step into voice over cable telephony.
REVENUES
• Core Cable:
• Analog Cable Service – Basic Cable Services
• Digital Cable Service – Digital Service Channel
fees
• Internet – Residential and Commercial Internet
Services.
• Rogers Video – Sale and Rental of DVD, Cassettes.
• Agents – Rogers Video acts as an agent for Rogers
Wireless.
Expenses
• Cost of Rogers Video stores
• Sales and Marketing Expense
• Operating, general and administrative expenses.
• Customer Care Expenses.
• Technological Disturbance Expenses
Revenue & Operating Profit
2500
Million ($)
2000
1500
1000
500
0
2001
2002
2003
Revenue
2004
2005
Operating Profit
In Millions of Dollars
2001
2002
2003
2004
2005
Revenue
Operating Expenses
Operating Profit
Operating Profit Margin
1433
916
516.7
36.1%
1596.4
1032.9
563.5
35.3%
1788.1
1124.6
663.5
37.1%
1945.7
1237
708.7
36.4%
2067.7
1349.1
718.6
34.8%
Risks
• Acceptance of new products and failures.
• Substantial Competition.
• The increasing programming costs.
• High Government regulation.
• High technological dependence.
• Increasing royalty rates.
• Reliance on Suppliers.
ROGERS MEDIA
• Media holds radio and television broadcasting
operations, our consumer and trade publishing
operations and our televised home shopping service.
• Media Broadcasting
• 43 Radio Stations
• 2 Multicultural television Stations in Ontario.
• Specialty Sports television service across
Canada(Rogers Sportnet)
• The only nationally televised shopping service.
• Rogers Publishing
• Well known consumer magazines such as
Maclean’s, Chatelaine, Flare, L’actualite,
Canadian Business and is the leading publisher
of a number of industry, medical and financial
publications.
•Effective Jan 1, 2005 – All sports entertainment
Assets will be a part of Rogers Media.
• Sports Entertainment Assets include:
•The Toronto Blue Jays baseball team
• Rogers Centre, Canadian largest sports and
entertainment facility:
Revenue
• Advertising Revenues
• Circulation and subscription revenues.
• Retail product Sales.
• Ticket Sales at Rogers Centre
• Revenue from home games.
• Revenue sharing Agreement with Major
league baseball league.
Expenses
• Cost of sales.
• Cost of retail product at The Shopping Channel.
• Sales and marketing expenses
• Operating, general and administrative expenses
• Programming Costs
• Production Costs
• Circulation expenses.
• Team costs
• Players salaries.
•Scouting and stadium operations
Revenues and Operating Profit
1200
Million ($)
1000
800
600
400
200
0
2001
2002
Revenue
2003
2004
2005
Operating Profit
In Millions of Dollars
2001
2002
2003
2004
2005
Revenue
Operating Expenses
Operating Profit
Operating Profit Margin
681
603.4
77.4
11.4%
721.7
653.4
68.3
9.5%
986.4
898.8
87.6
8.9%
956.9
841.5
115.4
12.1%
1097.2
969.4
127.8
11.6%
Risks
• Advertisement, a major source of revenue. A
decrease in advertisement demand.
• Increased Competition.
• Increase in the paper prices, printing costs or
postage.
• Change in regulatory policies.
• Media business sensitive to external events and
economic conditions.
• Introduction of new technology and products.
ROGERS TELECOM
• Sprint Canada and Call-Net name changed to
Rogers Telecom after the successful acquisition
of Call-Net.
In Millions of Dollars
2005
Revenue
Operating Expenses
Operating Profit
Operating Profit Margin
423.9
378
45.9
10.8%
MANAGEMENT
• A true pioneer in the communications industry
• Man behind the success from the beginning.
• Education
•Doctorate of Science, Clarkson University of Potsdam, New York,
1989
•Doctorate of Law, University of Victoria, BC, June 1990
Edward S. Rogers, O.C
President and CEO
•Doctorate of Law, York University, Ont., June 1994
•Doctorate of Law, York University, Ont., June 1994
•Doctorate of Law, University of Western Ontario, Ont. 1996
•Doctor of Sacred Letters, Trinity College, University of Toronto, 1997
• Doctor of Letters, University of New Brunswick, October 2001
H. Garfield Emerson
Chairman
Alan D. Horn,
V.P, Finance and C.F.O
• Joined RCI as Director,
RCI, Nov, 1989
•Joined Rogers' group in 1990
as President and COO, Rogers
Telecommunications Limited.
•Chairman of the Board
since March 1993.
•Honors B.A. (History)
•LL.B., University of Toronto
•Tax partner with KPMG from
1984 to 1987
•C.A.
• Honors B.Sc. (Mathematics)
Philip B. Lind
Vice Chairman
• Joined RCI as Programming
Chief in 1969
• Director of RCI since 1979.
• B.Sc. (Political Science &
Sociology)
• Doctor of Law, UBC.
FINANCIAL STATEMENTS
2005
2004
2003
2002
2001
Total Revenue
7,482,154
5,608,249
4,791,856
4,266,785
3,912,656
Operating Expenses
5,272,109
3,874,108
3,342,960
3,125,171
2,960,135
Operating Income
Depreciation & Ammortization
Interest on long Term Debt
Pre - tax Equity Income (Loss)
Interest Income
2,210,045
1,478,011
710,079
1,734,141
1,092,551
522,074
-18,694
29,546
10,852
1,448,896
1,040,263
488,865
-54,033
2,256
-51,777
1,141,614
981,458
491,279
-100,617
2,289
-98,328
952,521
920,917
430,311
-81,630
24,507
-57,123
-61,200
-73,514
303,707
17,902
-24,839
-300,984
-5,850
6,211
903,697
10,117
Investment Income
Write Down -offs
Restructing & Integrating Costs
Foreign Exchange Gain
Divestment Gains
Loss on early payment of debt.
Change Fair value derivatives
Other Income
Pre - Tax Income
Current Income Taxes
Future Income Taxes
Net Income
Previous Retained Earnings
Accounting adjustment
Adj.to retainedEarnings
Adj.to retainedEarnings
Preferred Dividend Declared
Common Dividends Declared
Retained Earnings
-6,021
-66,476
35,477
-11,242
-25,168
2,951
-42,503
10,730
-8,575
-44,658
-416,731
-102,710
-102,710
37,449
-601,548
-67,555
14,454
-28,210
26,774
69,810
3,447
-13,218
339,436
-7,025
-7,025
33,000
24,052
-416,731
164,761
1,675
-24,532
129,193
-415,589
29,802
23,238
-339,436
12,331
196,071
12,396
-87,126
312,032
-548,139
-111,883
109,451
-481,093
15,062
27,988
-434,291
-63,041
-111,883
67,599
50,807
-415,589
-548,139
2005
Interest to Expense
Interest to Revenue
Interest to Profit
2004
2003
2002
2001
13.5%
9.5%
32.1%
13.5%
9.3%
30.1%
14.6%
10.2%
33.7%
15.7%
11.5%
43.0%
14.5%
11.0%
45.2%
2005
2004
2003
2002
2001
Earnings Per Share
-0.15
-0.28
0.35
1.05
-2.41
Fully Diluted EPS
-0.15
-0.28
0.34
0.83
-2.41
Net income, continuing opers.
Future income taxes
Depreciation & amortization
Deprec., prog. rights & videos
Accrued interest
Equity loss (income)
Foreign exchange loss
Change fair value derivatives
Loss repayment long-term debt
Write-downs & restructuring
Minority interest
Divestment loss (gain)
Stock-based compensation
Dividends from associated cos.
Other
Cash flow
Change in non-cash w ork. cap.
Funds from operating activs.
Issue of long-term debt
Repayment of long-term debt
Premium on debt retirement
Issuance of capital stock
Redemption of capital stock
Financing costs incurred
Dividends paid
Other
Funds from financing activs.
Additions to fixed assets
Purch. of RWCI
Purch. of Microcell
Purch. of Blue Jays
Acqusition of Microcell
Cash acquired, Sprint Canada
Subscribers & licences
Increase in other investments
Other acquisitions
Sale of subsidiary shares
Disposal of investments
Funds from assets for sale
Other
Change in non-cash work. cap.
Funds from investing activs.
Net change in cash position
Cash, beginning of year
Cash, end of period
2005
2004
2003
2002
2001
-44,658
-8,575
1,478,011
90,184
nil
nil
-34,964
25,168
11,242
nil
nil
nil
38,949
nil
-3,942
1,551,415
-345,674
1,205,741
1,369,208
-1,509,577
-49,188
100,348
nil
-4,940
-26,209
-68,634
-139,804
-1,353,796
nil
nil
nil
-51,684
65,467
nil
nil
-38,092
nil
nil
nil
2,177
-37,883
-1,413,811
-347,874
243,993
-103,881
-13,218
nil
1,092,551
88,328
nil
18,694
66,943
-26,774
28,210
6,021
79,581
-14,454
15,389
nil
-3,252
1,338,019
-62,090
1,275,929
8,982,443
-6,043,533
-19,348
302,231
nil
-66,071
-56,422
-6,186
3,063,274
-1,054,938
-1,772,840
-1,148,637
-99,235
nil
nil
nil
-4,327
-72,755
nil
7,816
nil
nil
59,994
-4,084,922
254,281
-10,288
243,993
129,193
-24,532
1,040,263
nil
10,167
54,033
-290,661
nil
24,839
nil
58,425
-17,902
nil
924
nil
984,749
-49,405
935,344
1,589,518
-1,691,480
-21,773
252,011
nil
-6,220
-44,607
nil
79,874
-963,742
nil
nil
nil
nil
nil
nil
-27,937
nil
nil
20,705
nil
nil
-81,416
-1,052,390
-37,172
26,884
-10,288
312,032
-87,126
981,458
nil
10,767
100,617
-3,546
nil
-10,117
300,984
-41,231
-903,697
nil
1,449
-19,157
642,433
73,878
716,311
2,977,330
-2,445,131
nil
5,729
-1,317,040
-27,399
-33,000
225,210
-636,074
-1,261,983
nil
nil
nil
nil
nil
nil
-49,829
-103,425
nil
1,292,445
nil
nil
52,238
-70,554
9,683
17,201
26,884
-434,291
27,988
920,917
nil
10,025
81,630
nil
nil
nil
61,200
-89,852
-109,451
nil
2,305
nil
470,471
-51,522
418,949
2,187,200
-1,248,367
nil
264,427
nil
nil
-33,014
140,200
1,310,446
-1,420,747
nil
nil
nil
nil
nil
-396,824
-69,915
-221,398
69,691
27,848
nil
nil
nil
-2,011,345
-281,950
299,151
17,201
Divdends Declared Per share
Shares Outstanding
2005
2004
2003
2002
2001
0.125
0.1
0.1
0
0
2005
2004
2003
2002
2001
313,936,235 275,214,468 233,477,040 215,024,852 209,792,368
5 YEAR Stock Chart
2 YEAR Stock Chart
BUSINESS STRATEGY
• Diverse set of portfolio across Business Channels.
• Bundled product and service offering.
• Sharing Infrastructure, corporate services and
distribution channels.
• Grow bigger and Biggest.
• “New technology, I am the first one”.
• Strong OLD Management.
• Growth through Acquisitions.
• Acquisitions
• Acquisitions………..
MTS
SHA
W
????
FISHER SAYS…..
• People’s Factor :
Attractive
• Price of Investment:
Moderate Attractive
• Superiority in Products and Reach:
High To Moderate Attractive
• Investment characteristics of business:
Attractive
Recommendation
BUY
Source
• Rogers Website
• www.sedar.com
• FP Infomart.
• Financial Statements of Rogers
Company Overview
 Company History
 Company Management
 Products and Services
 Business Forecasts
 Operating Risks
 Financial Analysis
 Fisher Valuation Approach

TELUS Overview 1




Leading incumbent Canadian telecommunications
provider to Western Canada, and Eastern Quebec
A national provider of data, IP and voice solutions
focusing on the business market.
3rd largest ISP in Canada
Two major segments:
• Wireline, TELUS Communications
• Wireless, TELUS Mobility
TELUS Overview 2
Business Units:
 Consumer Solutions
 Business Solutions
 Partner Solutions
 Wireless Solutions
 TELUS Québec
TELUS Overview 3
Corporate Strategy
 Enhancing our leadership position in
wireless
 Growing brand value through superior
customer services
 Revitalizing wireline growth through
innovation and national expansion
 Driving towards leadership in highspeed Internet solutions
 Embracing continual cost efficiency
Company History – BC Tel
1998
BC TEL merged with TELUS.
1993
The Company was renamed BC TEL. BC TEL reorganized under
a holding company this year.
1923
British Columbia Telephone Company was established under
the federal charter.
1904
British Columbia Telephone Company was formed by the
Vernon and Nelson Telephone Company by changing name
1880
45 Small phone companies in BC.
1878
BC’s first telephone line on Vancouver Island.
Company History - TELUS
TELUS history
2004
Verizon Communications, who own 20.5% minority interest, announced its plan to sell its
shares.
2001
TELUS completed several acquisition of several small data and Internet companies, including
Williams Communications, PSINet NWD Systems
2000
TELUS Acquired Clearnet and Quebec Tel.
1998
TELUS Corporation and BC TELECOM announce a proposed merger.
1991
The Province of Alberta sold its remaining ownership interest in TELUS for $870 million.
1990
TELUS Corporation established. It went IPO for $896 Million.
1982
Canada's first cellular telephone system introduced to serve Alberta resource industries.
1906
The Province of Alberta commenced operation of the provincial phone system after acquiring
the Alberta assets of the Bell Telephone Company.
1885
Alberta's first telephone call, between Fort Edmonton and the St. Albert mission.
TELUS Management 1
• Age: 42. MBA (Finance) McGill University
1988
• Prior to 2000, President with Cable and
Wireless UK
• Executive with Mercury Communications
UK
• Executive with Bell Cablemedia PLC
• Shareholding: 22,000CS/106,316NV
• Options: 150,000CS/490,000NV
•Annual Compensation: 1.5 Million CAD
• Honorary Doctorate in Technology,
BCIT 1997
• Appointed to Order of British
Columbia 1998
• 47 years with BC TEL
• Member of the board of directors of
Terasen Gas, Suncor Energy and the
TSX.
• Shareholding: 9,718CS/5,509NV
• Options: 80,000CS/74,000NV
• Compensation mainly based on
options plus $200,000CAD
Executive Option Granted for 2005 and 2004
2005
2004
Executive retirement benefits
As of the end of 2004
TELUS - Products and Services
Products and Services –
Communications Segment





Voice – local and long
distance phone service,
personal call management
services
Data – Web hosting,
network management
Internet – Dial-up and high
speed Internet
IP-based – TELUS IP-ONE
Innovation provide business
solutions with ability to
integrate voice mail, email,
data and video through a
web portal
TELUS Future Friendly Home
– integrated networking
solutions to family. Home
monitoring etc…
Wireline Segment




Consistent growth for the High-speed Internet services (Avg
growth: 10%)
Decreased in net additions due to the labor strike for 2005Q4
Dial-up is decreasing – changing of consumer preference
Launched a new wave of marketing campaign
Products and Services – Mobility
Segment





Digital Voice – PCS CDMA,
PTT, Mike.
Mobile Internet – Wireless
Web, text, picture and
video message, ring tone,
image and game
downloads
Data – packet data.
BlackBerry Service.
Roaming agreement with
Verizon Wireless and
partnership with Nextel.
Around 40% of revenue
from this segment
Wireless


Continued demands for wireless service to
boost the revenue from this segment
Strong increase in the net additions of
wireless subscription. Average 13% annual
growth.
Wireless – High ARPU & Low Churn
Rate
• Average revenue per subscriber unit
• An important benchmark to compare
wireless customer’s spending
• 2005 ARPU is $62, highest in the TELUS
history
• 20% ARPU premium over Canadian
wireless competitors
• Reflecting TELUS’s ability to attracting
high-value customers and keeping them
• Indicating the overall voice and data
usage continue to climb
• Focus on customer care and having the
low monthly churn rate (deactivation) of
1.4%
62
62
60
60
58
57
56
55
ARPU
54
52
50
2005
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2004
2003
2002
1.80%
1.42%
1.45%
1.50%
Monthly Churn
Rate
2005
2004
2003
2002
Operating Risks



Labor Issues
Licensing and Regulatory Issues
Competitions
Risks - Labor Issues

2005 Labor strike affect the 2005 Q4 result
significantly

New Collective agreement
Ratified 5 yr agreement to 2010
To supports a performance culture
Both parties to dismiss all legal proceedings
Improve employee engagement
-
-
Risks - Licensing and Regulatory Issues

Price cap regulation
•
•

Terms of access
•
•

2002, CRTC establish new lower prices for some
telecom services
Increase the competitions
Power pole access 1999 & 2003
Will result in higher access costs
2003 - 7 year term on TELUS’ broadcasting
distribution and video on demand.
Risks - Competitions

Wireline voice and data
•
•
VoIP as alternative
Calling card
Wireline Internet access
 Voice over Internet protocol (VoIP)

•
•

Shaw, 3 cents a minute for long distance calls
Rogers Call-net
Wireless
•
•
Rogers acquired Fido, making Telus more
difficult
Continue to intensify
Business Forecasts & Value Drivers



Demonstrated wireless
excellence
Strong revenue despite
of labor strike
Strong 2005 financial
results:
•
•
•
Revenue & EBITDA up 7%
Net Income up 24%
Free Cash Flow up 13%

New products and
contracts
•
•
•
•
New wireless high speed
network and devices
TELUS TV & the Future
Friendly Home
Plan to offer VOIP Service
TELUS signed a $137 million
deal with Hamilton Health
Sciences
Stock Performance
Last Trade(T-TSX): CAD$43.25
Last Trade(TU-NYSE):
Day's Range: CAD$43.02-43.50
52wk Range: CAD$36.61-49.99
Avg Vol (3m): TSX 829,664
Trade Time: Feb 24, 2006
Market Cap: 13 billion
Prev Close: CAD$43.34
P/E (ttm): 22.6 (Industry PE
17.6)
Open:CAD$43.25
EPS (ttm): 25.96
Div & Yield: 0.875 (2.02%)
Financial Analysis – Selected Quarterly Data
Financial Analysis - TELUS
• Strong operating cash flow
• Cash was spent on the stock repurchase and repayment of long-term debt
• Net Income, Free Cash Flow, ROE, EPS increasing
• CAPEX/Revenue decreasing
• High leverage debt structure
Financial Analysis


High leverage business
Debt Structure
• Short-term Revolving Facility: 1.67 billion
• Long-term Debt Facility: 4.6 billion
• Repayment of debt will result in reduce in earning and
decrease in dividend per share
Financial Analysis



High leverage business
Strong 2005 financial results:
• Revenue & EBITDA up 7%
• Net Income up 24%
• Free Cash Flow up 13%
Conclusion: Strong Financial Position
TELUS Management 2
• MBA, University of Western
Ontario 1985
• CFO since 2000
• Reorganize the TELUS finance
department
• Quarterbacked the completion of
the merger with BC TEL.
• Annual compensation: CAD615K
• BS (EE), University of Waterloo 1987
• EVP since 2003
• KPMG Consulting
Former country leader for Canada
• Strong industry ties
• Annual compensation: CAD 690K
Financial Analysis – Income Statement
Financial Analysis – Balance Sheet
Financial Analysis – Balance Sheet
TELUS - Valuation
Fisher’s Valuation Approach
Superiority in production,
marketing, research and
financial skills – Moderate
Attractive
 Well managed company
 Strong financials but with high
leverage
 Satisfied production and
services
 Marketing Strategy – Focus
(business solutions and high
ARPU customers)
The people factor – Less Attractive

Experts in post-merger
management

Weak in leading the technological
innovations

Possible future union problems
Investment characteristics of
some businesses – Moderate
Attractive
 License requirements
 Difficult barrier to entry
 High competition
The price of investment – Less
Attractive

High price now at $43

Near the historic high of $49

Year end P/E at historic high of
25.96
Recommendation: Sell
Sources of Information
TELUS AR 2004
 TELUS 2005 Information Circular
 TELUS 2006 Quarterly Result News
Release
 www.telus.com
 www.sedar.com
 Mergent Online.
 Fidelity Online.
 Yahoo Finance.
