March 2007
Darren Entwistle
President & Chief Executive Officer

Forward looking statements
This session and answers to questions contain forward-looking statements that require assumptions about expected future events including 2007 targets, competition, financing, financial and operating results, and regulation that are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate so do not place undue reliance on them.
Factors that could cause actual results to differ materially include but are not limited to: competition; capital expenditure levels (including possible spectrum purchases); financing and debt requirements (including share repurchases, debt redemptions and refinancing plans); tax matters (including deferral of payment of significant cash taxes); regulatory developments (including local forbearance, local price cap regulation, spectrum auction, and wireless number portability); process risks
(including conversion of legacy systems and billing system integrations); and other risk factors discussed herein and listed from time to time in TELUS’ reports.
There are many factors that could cause actual results to differ materially. For a fuller listing and description of the potential risk factors and assumptions, please refer to the TELUS 2006 annual management’s discussion and analysis, 2007 targets news release issued on Dec. 14, 2006 and other filings with securities commissions in Canada (sedar.com) and the United States (sec.gov).
All dollars in C$ unless otherwise specified
2

Table of contents
 Strategy
 Operational update
 Financial update
 Investor considerations
 Appendix slides starting
6
11
39
46
58
3

 Executing national growth strategy focused on data, IP & wireless
 2006 consolidated results:
 Revenues
 EBITDA
 EPS 1
 Capex
 Free cash flow
$8.7B
$3.6B
$3.27
$1.6B
$1.6B





7%
9%
67%
23%
9%
 Enterprise value: $26B (equity $19B)
 Avg. daily trading: ~2.2M (recent 90 day avg.)
 Listings: Common: TSX T; non-voting: TSX T.A; NYSE TU
 Reporting segments: wireless and wireline
1 2006 EPS includes $0.48 of positive tax-related adjustments
Top performing Canadian telecommunications company
4

Going to market as one team
Consumer
Solutions
Technology
Strategy
Human
Resources
Business
Solutions
Network
Operations
Finance
& Strategy
Partner Solutions
& TELUS Québec customer facing business units
Business
Transformation enabling business units
Corporate &
Government
Affairs supporting business units
Office of CEO
Customer facing structure since 2001
5

Strategic imperatives
 Focusing on growth markets of data and wireless
 Building national capabilities
 Providing integrated solutions
 Investing in internal capabilities
 Partnering, acquiring and divesting as necessary
 Going to market as one team strategic intent … to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move.
Consistent strategy and execution 2000  2007
6

 purchase of Quebec Tel ($0.7B) and Clearnet ($6.6B) - 2000
 divestiture of non-core assets - $1.1B (real estate and directories)
 completion of national IP backbone & fibre network
 first in N.A. to launch Next Generation Network, enabling IP based solutions for customers - 2003
2000
 awarded national managed data solutions contract for TD Bank valued at $160M over 7 years - 2003
 Verizon divested 20.5% ($2.2B) equity interest – Dec 2004
 five year (2010) progressive collective agreement ratified – Oct 2005
 staged launch of TELUS TV
® in certain western markets – 2005-07
 wireless merger into customer facing business units – Dec 2005-06
 won landmark Government of Ontario managed network contract valued at $140 million over 5 years – Sept 2006
2007
7

Wireless
• PoPs covered (millions)
• Mike (iDEN) (millions)
• Generation
Jan 2000
7
-
1G
Wireline
• Ont/Que cities
•
Co-locations
• Customer POPs
• Fibre lit (km)
• Platform
• Network
1 as of December 31, 2006
3
2
5
0
Stentor
Circuit-based today 1
31
26
3G
46
96
1067
15,600
TELUS
Next Generation (NGN)
8

BC
Alberta
Wireline
87%
13%
Ontario
Wireline
49%
Wireless
Quebec
51%
Wireless coverage
9
Backbone optical and IP network

Revenue
$5.7B
$8.7B
LD
23%
Wireline local
49%
Wireless
18%
Data
2000¹
¹12 mos ending June
10%
LD
10%
Voice
27%
Wireless
Voice
41%
Wireline
Data
19%
2006²
²12 mos ending December
Data and wireless now represent 63% of TELUS revenue
10
Wireless
Data
3%

2007 corporate priorities
1.
Advancing TELUS’ leadership position in consumer market
 Combining our suite of data applications with deregulated heritage services
 Attaining best-in-class customer loyalty and growth through unparalleled customer experiences
 Achieving customer addition targets by expanding our distribution channels and addressing key market segments with new service offerings
Unleashing the power of the Internet
12

2007 corporate priorities
2.
Advancing TELUS’ leadership position in business market
 Progressing further in key industry verticals with specific applications that provide non-price-based differentiation
 Leveraging wireless number portability to expand our business market share in Central Canada
 Focusing on small business customer loyalty and growth with innovative solutions
Business . . . backed by TELUS
13

2007 corporate priorities
3.
Advancing TELUS’ leadership position in wholesale market
 Growing in domestic and international markets through recognition that TELUS is Canada’s IP leader
 Achieving excellence in customer service to support local forbearance in key incumbent markets
 Expanding our markets, channels and products by focusing on strategic relationships with our partners
Enhancing our IP leadership and partnerships
14

2007 corporate priorities
4.
Driving TELUS’ technology evolution and improvements in productivity and service excellence
 Implementing technology roadmaps for Future Friendly Home and wireless service offerings that simplify our product portfolio and improve service development and execution
 Rolling out consolidated customer care systems to replace multiple legacy systems in Alberta and B.C.
 Accelerating customer service delivery dates
Striving for customer service excellence
15

2007 corporate priorities
5.
Strengthening the spirit of the TELUS team and brand, and developing the best talent in the global communications industry
 Growing our business ownership culture with a team philosophy of “our business, our customers, our team, my responsibility” thereby attracting, developing and retaining great talent
 Leading the way in corporate social responsibility as we strive to be Canada’s premier corporate citizen
Our business, our customers, our team, my responsibility
16

Framework for long term growth wireline growth opportunities
Non-ILEC
Growth
+
Future
Friendly
Home
+
Organization
Effectiveness
Price Cap
Regulatory
Framework challenges
Technological
Substitution
+
Competitive
Intensity
Short-term dilutive
Strive to hold wireline EBITDA (before restructuring) flat over medium term

Growth in revenues and EBITDA from wireless business
=
Continued improvements in consolidated results
17

7.2
Q2-00
10.7
9.7
10.2
(millions)
Res NALs
Bus NALs
Dial-up Internet
High-speed Internet
Wireless
Q4-04 Q4-05 Q4-06
1 million new connections due to wireless and Internet growth
18

924
Gross additions (000s)
Net additions (000s)
1,279
1,293
1,121
1,017
985
987
535
550+
474
512
584
418 418 431
2000 2001 2002 2003 2004 2005 2006
2006: Record gross additions / net 2 nd best in 7 years
Net additions > 500K for third consecutive year
19
2007E

Total wireless subscribers (M)
5.1
4.5
3.9
3.4
Wireless subscribers mix
Prepaid
Prepaid
19%
977K
4.1M
2003 2004 2005 2006
5.1 million
Continued wireless growth with strong postpaid mix
20

review of operations – wireless
$62
$63
$52
$56
$49
$51
2005
2006
TELUS Rogers Wireless BCE Wireless
Data driving positive industry trend
21

review of operations – wireless
Q4-05
Q4-06
$6.16
$5.05
$6.54
$3.17
TELUS Rogers Wireless
TELUS Q4 data ARPU up 94%
22

 More than 50 regions
 Now covers 2/3 of Cdn population
 Cool applications
 Music downloads and video games
 Watch 15 channels on Mobile TV
 Five times faster
Fostering continued data growth
23

 Amp’d is high-speed EVDO driven service – Spring 2007
 Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets
 TELUS manages sales, distribution, billing, client care, network options and pricing
 Targeting 18 to 35 age demographic and lifestyle
 Exclusive licensing and service agreement – not an MVNO
 Amp’d Mobile is a premium brand with high ARPUs focused on mobile media (not traditional voice) and postpaid
 TELUS Ventures invested US $7.5M in Amp’d Mobile, Inc.
24

1
3.1
2.6
2.4
2.3
1.9
1.6
1.5
1.33
1.2
1.2
Source: Company reports; Merrill Lynch
1 Q3 churn where annual not available
Low churn relative to global peers
26

TELUS wireless EBITDA & cash flow growth
1,975
1,751
1,443
EBITDA ($M)
EBITDA less Capex ($M)
1,142
1,427
1,038
1,324
815
788
535
455
356
173
2000
¹
2001
²
75
2002 2003 2004 2005 2006
(288)
(360)
¹ Pro forma acquisition of Clearnet
² EBITDA (excluding restructuring) for 2001 & 2002
3 Midpoint of 2007 targets normalized for pre-tax option expense of $30 to $50 million.
27
2007E 3

2006
EBITDA margin
(total rev.)
Capex intensity
(total rev.)
Cash flow 1 yield
(total rev.)
TELUS
45%
11%
34%
Other
Cdn avg.
43%
US avg.
32%
12% 18%
31% 14%
1 EBITDA less capex
Source: Company reports
North American leader in wireless profitablity
28

36
1
34
32 32
30
28
25
19 19
17
TELUS*
135% 56% 56% 102% 82% 104% 56%
76% 76% 88%
1 EBITDA less capital expenditures divided by revenue
Source: Merrill Lynch, UBS. TELUS actual results. Other wireless carriers estimated.
High cash flow yield, with attractive penetration opportunity
29

Net subscriber adds
TELUS share of adds
Population penetration
Penetration gain
2003
1.5M
28%
42.3%
4.1pts
2004
1.6M
33%
46.7%
4.4pts
2005
1.8M
2006*
1.7M
32% 32%
51.8% 56.4%
5.1pts
4.6pts
Source: Company reports, CWTA
* Does not include wholesale figures
Growth of 4 - 5 points per year for past 4 years
30

review of operations
Penetration:
42%
Subscribers:
13.4M
56%
18.5M
~70%
~23M
Source: Industry analysts * See forward looking statement caution
4 to 5 million net additions expected in Canada over 3 years
31

financial review
 Data growth largely offsetting declining local and LD
 Strong high-speed Internet net additions
 TELUS TV provides long-term opportunity riding on broadband platform
 Making inroads in Central Canadian business market
 e.g. Government of Ontario $140 million 5 year contract
 Improving regulatory situation
Comparative resiliency in wireline
32

Total Internet subscribers
562
High-speed Internet subscribers (000s)
917
763
690
Dial-up
17%
194K
917K
High-speed
83%
1.1 million
2003 2004 2005 2006
Continued strong net addition growth
33

financial review
 Offering customers differentiated entertainment
 Choice of 200+ digital stations
 Customized channel packaging
 Interactive programming guide
 Video on demand
 myTELUS channel
 Call display
 Operating on ADSL2+ platform
Launched in Edmonton, Calgary and Vancouver
34

35

Incoming call from Kim Smith (604) 555-1234 Close

Trailing six quarters ended Q4-06 (%)
TELUS BCE AT&T (SBC) Verizon BellSouth
-2.2
-2.4
-2.7
-2.6
-2.8
-3.0
-2.0
-2.5
-3.2
-3.3
-3.7
-4.2
Q3 Q4 Q1 Q2 Q3 Q4
2005 2006
Source: Merrill Lynch, Company reports
-5.1
-5.6
-6.0
-6.1
-6.2
-6.3
-6.2
-6.7
-6.9
-7.4
-7.5
-7.6
-5.0
-5.8
-6.1
-7.0
-6.9
-6.4
37

(Ontario and Quebec)
EBITDA ($M)
555
Revenue ($M)
657
632
561
2003 2004 2005 2006
2003 2004
(29)
(22)
32
21
2005 2006
Continued focus on profitable, long-term growth in Central Canada
38

Revenue
EBITDA 1
EPS 2
2005
$8.14B
$3.30B
$1.96
EPS (excl. non-recurring items)
Capex
$2.07
$1.32B
2006
$8.68B
$3.59B
$3.27
$2.79
$1.62B

Change
6.6%


9.0%
67%

35%

23%

9.2% Free cash flow $1.47B
$1.60B
1 2005 EBITDA includes $133M net expenses, excluding any revenue or indirect impacts, from labour disruption. EBITDA includes restructuring and workforce reduction costs of $54M and $68M, for
2005 and 2006, respectively
2 2005 EPS includes negative impact of $0.25 from labour disruption and $0.06 from early bond redemption. EPS includes favourable tax related adjustments of $0.20 and $0.48, for 2005 and 2006, respectively.
Strong growth in revenue driven by data and wireless
40

Revenue
2007 targets
$9.175 to 9.275B
Normalized EBITDA 1,2 $3.725 to 3.825B
Normalized EPS 2,3
Capex
$3.25 to 3.45
approx. $1.75B



 change
6 to 7%
4 to 7%
17 to 24%
8%
1 EBITDA includes r restructuring and workforce reduction costs, estimated to be approx. $50M in 2007.
2 EBITDA excludes $150 to $200M of non-recurring, non-cash expenses associated with cash settlement of options.
EPS impact of $0.30 to $0.40.
3 EPS year over year growth rate normalized for $0.48 of positive tax-related adjustments in 2006.
2007 targets reflect healthy performance expected in wireless
41

Revenue
Normalized EBITDA 1
Capex
High-speed net adds
2007 targets
$4.85 to 4.9B
$1.775 to 1.825B
approx. $1.2B
> 135,000

 change
1 to 2%
(3) to (1)%

-
(12)% or better
Con’t strong growth
1 EBITDA excludes $120 to $150 million of non-recurring, non-cash expenses associated with cash settlement of options.
42

Revenue
Normalized EBITDA 1
Capex
Wireless sub. net adds
2007 targets
$4.325 to 4.375B
$1.95 to 2.0B
approx. $550M
> 550,000



 change
12 to 13%
11 to 14%
29%
>3%
1 EBITDA excludes $30 to $50 million of non-recurring, non-cash expenses associated with cash settlement of options.
43

$3.27
 48¢
$2.79
 35 to
55 ¢
 9¢
 10 to
15¢
 11 ¢
$3.25 to
3.45
2006 Taxrelated adjust.
2006 normal.
EBITDA growth
Lower fin.
costs
Decr. in avg o/s shares
Higher dep.
2007E 1 normal.
1 EPS excludes $0.30 to $0.40 of non-recurring, non-cash expenses associated with move to cash settlement of options.
Strong normalized EPS growth of 16 to 24%
44

($ billions)
1
1.45
1.57
1.525 to 1.625
1.29
.
2004 2005 2006 2007E 2
1 2007 definition. Calculated as EBITDA adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, less cash interest paid, cash taxes, capital expenditures and cash restructuring payments, subtracting cash payments related to Other expenses such as charitable donations and A/R securitization expense
2 Normalized for expected cash impact due to option cash settlement of approximately $100M midpoint
Increased EBITDA and lower financing costs lead to FCF growth
45

 Renewed 24M share repurchase program in Dec. 2006
 Authorized to repurchase up to 12M common and 12M non-voting (up to 7% of total shares outstanding)
 Introducing cash settlement for vested options - mitigates shareholder dilution
 Dividend increased by 36% to 37.5 cents per quarter for
Jan 1, 2007, consistent with dividend growth approach
 Annualized dividend in line with targeted payout ratio guideline of 45 to 55% of sustainable net earnings
Annualized dividend now at all time high of $1.50
47

$ per share
4
Share repurchases
Dividends
3.43
3.30
3
3.90
2.40
2.50
2.33
2
1
0.60
0.82
0.22
0.60
0.80
1.10
1.50
2003 2004 2005 2006 2007E 1,2
1 Annualized dividend, plus share repurchases in 2006 as estimate for 2007. Assumes lower average shares outstanding of 330 million to 335 million in 2007.
2 See forward looking statement caution. Assumes continuation of share repurchase program
48

 Introduced cash settlement for vested options
 Mitigates share dilution by avoiding treasury issuance
 Expect  non-recurring, non-cash pre-tax operating expense of $150M to $200M in Q1-07
 $120M to $150M in wireline, $30M to $50M in wireless
 Reported EPS impact of $0.30 to $0.40
 Cash payments deductible for tax purposes when options exercised and cash paid out
 Cash tax savings of up to $70M over 3 years
Limits dilution and creates cash tax savings
49

 Closed $2B credit facility to 2012
 Can be utilized for commercial paper issuance
 Announced and priced issue of $1B 5 and 10 year Notes
 $300M at 4.5% to 2012
 $700M at 4.96% to 2017
 Part of refinancing 7.5% $1.5B due in June 2007
TELUS liquidity position very strong
50

Credit profile
C$ millions
3500
3000
2500
2000
1500
1000
500
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 20172018+
Existing debt Deferred FX hedge liability
New issuance
Pro forma maturity structure post-2007 note refinancing
51

 Wireless capex increase of $125 million to approx. $550 million
 Within 11-13% intensity range
 Wireline capex unchanged at approx. $1.2 billion
 Strong housing formation in West
 Broadband network enhancement program
 Implementing IT customer system consolidation
 Success based capex for contracts such as Govt. of Ontario
Investing to create future value
52

 Wireless local number portability effective Spring 2007
 Opportunity in business market in Central Canada
 Deregulation by federal government
 Local forbearance decision likely effective April 2007
 Based on competitive choice
 Directive to CRTC now in force
 Rely on market forces to maximum extent feasible
 Ensure competitive and technological neutrality
 Wireless spectrum auction likely by early 2008
Regulation increasingly based on competitive realities
53

Growth in
Revenue
EBITDA
EPS
2003 top 25% top 25%
-
2004
#1
#1
2005 2006 top 25% top 25% top 25% top 25% top 25% top 25% top 25%
Source: Bloomberg and TD Securities, for major global incumbent telecoms
TELUS performing well relative to global telecom peers
54

Annual Report on Annual Reports
 TELUS 2005 AR ranked 1st in world e.
Com
Report
Watch
Canadian Institute of Chartered Accountants (CICA)
 Best Corporate Governance Disclosure in Canada for second year
 2005 Annual Report received Award of Excellence
 Corporate Reporting - Communications & Media sector
 12 consecutive years of recognition
IR Magazine (Canada) awards
• 2007: Best Communications with retail market
 2006: Best annual report & disclosure policy
 2005: Best Sr. mgmt. communications & web site
Dow Jones Sustainability Index
 Only North American telco in global index
55

 Consistent and proven strategy
 Strong revenue and earnings growth, high exposure to wireless
 Continued strong wireless and Internet subscriber growth
 Focus on investment in growth areas
 Robust free cash flow generation
 Track record of returning capital to investors
 Excellence in reporting, transparency and governance
Creating value with on strategy performance
56

1-800-667-4871 telus.com
ir@telus.com

Total cost ($M)
Total shares (M)
% of total program
2004
$78
2.2
2005
$892
20.8
85% 1
2006
$800
16.4
73% 2
Total
$1,770
39.4
79%
Total end of period shares outstanding (M)
358.5
350.1
337.9
 20.6
1
Twelve month 25.5 million share repurchase program to Dec. 19, 2005
2
Twelve month 24 million share repurchase program to Dec. 19, 2006
Track record of share repurchases leading to 6% reduction in shares outstanding
59

normalized
Free cash flow
(2007 definition 1 )
1.6
1.525 to 1.625
2006 2007E 2
1 2007 definition of FCF subtracts cash payments related to Other expenses
2 Expected cash impact due to option cash settlement of approximately $100M midpoint
2007 Free Cash Flow expected to remain high
60

($M)
EBITDA
2007E
$3,525 to 3,625
Add back: cash settled option expense ~200
EBITDA normalized
Capex
$3,725 to 3,825
~(1,750)
Net Cash Interest
Other 1 :
~(430)
~(20)
Free Cash Flow (before cash settled option pmt.) $1,525 to 1,625
Cash settled options paid 2
(75) to (125)
Free Cash Flow $1,425 to 1,525
1
Includes restructuring expense (net of cash payments), net cash taxes, other share based compensation (net of cash payments) and cash payments related to Other expenses
2 Cash settled option payments are tax deductible and reduce treasury share issuance
61

 EBITDA : Earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization
 Capital intensity: capex divided by total revenue
 Cash flow: EBITDA less capex
 Free Cash Flow (2006): EBITDA, adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, and cash restructuring payments
 Free Cash Flow (2007): Consistent with FCF above and subtracting cash payments related to Other expenses such as charitable donations and A/R securitization expense
TELUS definitions for non-GAAP measures
62

TELUS Corporation
Agency
DBRS
S&P
Fitch
Moody’s
Rating
A (low)
BBB+
BBB+
Baa1
Outlook
Stable trend
Stable outlook
Stable outlook
Stable Outlook
TELUS at targeted credit rating with all 4 rating agencies
63

 Darren Entwistle was appointed President and CEO in July 2000
 Before joining TELUS, Darren held a number of leadership positions in the
UK at Cable & Wireless from 1995 to 2000, culminating in being appointed
President of the European business market in 1999. Prior to that he served in a number of leadership positions at Mercury Communications (UK), including Strategy Director and General Manager of Corporate Finance.
 Board of Governors of the International Institute of Telecommunications .
Board of Directors of TD Bank Financial Group, and McGill University; and
Chair of the Conservatory of Music's Capital Campaign .
 Bachelor of Economics (Honours) degree in Economics from Concordia
University, an MBA in finance from McGill University and a diploma in
Network Engineering from the University of Toronto
64