Just days after surpassing Bell as Canada's No 2. wireless carrier, Telus has announced plans to spend $1 billion in British Columbia to expand and extend its mobile network and other infrastructure.
The Vancouver-based telecom has invested $29 billion since 2000 - the year president and CEO Darren Entwistle joined Telus - on a long-term strategy that includes an "imperative to focus on the growth markets of data and wireless," said Josh Blair, Telus's chief corporate officer.
Earlier this month, the Canadian Wireless Telecommunications Association reported that Telus had 33,000 net wireless customer additions in first quarter 2013 for a total of 7,703,000 customers compared to Bell's net loss of 8,957 customers for a total of 7,672,076.
Rogers continues to dominate Canada's big three telecoms - although it suffered a net loss of 61,000 customers for a total of 9,376,000 in the first quarter for 2013.
"Our goal is always to be differentiated and a step ahead of the competition wherever possible," Blair said. "You can see by the leadership position we have in terms of being the fastest growing TV provider in North America, or industry leading in Canada for client loyalty when it comes to our wireless results, or (marketing analysts) J.D. Power recognizing Telus as the No. 1 wireless brand nationally in terms of full service brands and (Telus subsidiary) Koodo No. 1 in terms of value brands."
Analysts like the company.
Scotiabank's Jeff Fan gave Telus a sector outperform ranking after it released 2013 first-quarter financials early this month, and said "organic growth drives superior shareholder return for the next three years."
Unlike its peers, Fan said, "Telus does not need tax benefits, divestiture of underperforming assets, major (capital expenditure) projects or acquisitions to generate dividend growth or share buybacks.
He estimated annual revenue, which was $9.6 billion in 2009, will reach $11.4 billion in this fiscal year.
One driver of the company's wireless growth, cited by both the company and analysts, is its decision in 2009 to offer customers more flexibility in contracts for wireless phones and service.
"We determined that we wanted to differentiate ourselves over the long term and for the future, based on putting customers first in every single thing we do, every decision we make as a company," Blair said.
"That would include plain language in contracts, reducing roaming rates 60 per cent, notifications on data usage (overages), getting rid of activation fees.
"We've done that by going to our customers and asking 'What are the things you want differently?' "
Dvai Ghose, Canaccord Genuity telecom analyst and head of research, said Telus surpassed Bell "many years ago" by most measurements of financial performance including its base of lucrative postpaid wireless customers.
"So we've always considered them the No. 1 carrier even though they're not, in terms of size," Ghose said.
For Ghose, one of the leading attractions of Telus was a decision in 2009 to launch what it called its "clear and simple" plans that seemed to defy conventional wisdom in the wireless industry that heavy-handed treatment of customer contracts was the most effective route to profit.
Analysts were initially skeptical that making it easier for customers to escape contracts would lead to stronger financial results.
"The rule of thumb is that if the carrier screws you they make more money, right?" Ghose said. "That's what everyone believed. What I like about Telus is that being customer-friendly has paid off financially."
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