TELUS investing $670 million in British Columbia

Thousands of kilometres of fibre optic lines, 76 new cell sites, faster Internet and more Optik TV as TELUS expands networks in B.C. $24 billion invested in technology in province over past 10 years

Vancouver, B.C. – TELUS is investing $670 million across British Columbia this year to further expand and enhance its wireless and wireline networks. This year’s network investment builds upon the $24 billion TELUS has invested in its operations and technology in the province in the last 10 years.

In 2011, TELUS will continue to invest in its Optik TV and high-speed Internet services as it lays thousands of kilometres of fibre optic lines to support the growing demand in the province. The company will also deliver British Columbians access to even better and faster wireless broadband services by installing 76 new cell sites and introducing HSPA+ Dual Cell technology, one of the most advanced wireless technologies in the world.

After a decade of focused investment in leading-edge technology TELUS has:

• Extended TELUS wireless service to 99 per cent of B.C.’s population. With the introduction of a world-leading 4G wireless network offering manufacturer rated peak download speeds of up to 21 megabits per second – and soon up to 42 megabits per second* – British Columbians have access to extremely fast wireless high-speed Internet anywhere within TELUS’ vast network coverage area.
• Made wireline broadband available to 95 per cent of B.C. households, including a selection of Internet plans with speeds up to 25 megabits per second. The company also expanded availability of TELUS’ Optik TV to more than 1 million households across the province.
• By the end of last year, 314,000 customers in British Columbia, Alberta and Eastern Quebec had switched their TV service to TELUS.
• Enabled healthcare institutions to improve the flow of information across the continuum of care through electronic health records accessible on both wireless and wireline networks. Recently, 2000 TELUS team members and their families began a pilot of TELUS Health Space; paving the way for millions of Canadians to take control of their own health records with the ultimate goal of shifting the focus from remediation to prevention of illness.

“Our planned $670 million investment this year in advanced communications technology continues TELUS’ track record of providing British Columbians with access to telecommunications and entertainment services that are the envy of the world,” said Darren Entwistle, TELUS President and CEO. “This year, TELUS will continue to bring the innovations of Optik TV and faster Internet speeds to even more British Columbians. We will continue to bring citizens faster wireless broadband services as we introduce HSPA+ Dual Cell technology, one of the most advanced wireless technologies in the world, to more B.C. communities. TELUS is also committed to working with all levels of government in B.C. to advance the provision of life-changing healthcare and education services over our networks.”

By the end of 2010, TELUS had installed the infrastructure necessary to bring wireline broadband Internet speeds of up to 25 megabits per second and Optik TV to more than 1 million households in the Vancouver Lower Mainland, Victoria, Campbell River, Whistler, Kelowna, Vernon and Prince George. Optik TV runs over a high-speed Internet connection, providing customers with game-changing services and features as well as more than 480 channels, including 85 in High Definition (HD).

In 2011, TELUS will also continue to expand its 4G wireless network across B.C. Already the most extensive network in the province reaching 99 per cent of the population, TELUS will install about 76 new cell sites to bring service to even more rural communities and highway corridors and strengthen its coverage in urban centres. Earlier this year, TELUS announced it will introduce the Dual Cell upgrade to its HSPA+ network, doubling the manufacturer rated peak wireless Internet speeds to up to 42 megabits per second.

Mr. Entwistle added TELUS’ commitment to British Columbia communities extends beyond infrastructure and new services. “Since 2000, TELUS has partnered with our 15,000 B.C. team members and retirees to contribute $92 million and 2.1 million volunteer hours to charitable and community organizations in all corners of B.C.,” Mr. Entwistle said. “Building on our tradition of community giving, this year alone TELUS plans to contribute an additional $10 million to charitable organizations and community initiatives across the province.”

TELUS was recognized by the Association of Fundraising Professionals as the 2010 Most Outstanding Philanthropic Corporation globally, the first time a Canadian company has ever received this international honour. TELUS has supported more than 1,100 British Columbia charitable and non-profit organizations, including BC Children’s Hospital, Vancouver Symphony Orchestra, Union Gospel Mission, BC Cancer Foundation, University of British Columbia, BC Women’s Hospital, the David Foster Foundation and the Heart & Stroke Foundation. In addition, TELUS has donated more than $2.4 million to community organizations on Vancouver Island, and in Sechelt, Kelowna, Prince George, Vernon, Penticton, Powell River, Kamloops, Cranbrook, Chilliwack, Abbotsford, Mission and Ashcroft with its Optik TV and Satellite TV campaigns. Moreover, the TELUS Vancouver and Victoria Community Boards supported their respective communities with $5 million in funding for Vancouver and Victoria grassroots charities since 2005.

The capital investment disclosed in this release is consistent with TELUS’ overall capital expenditure target for 2011.

* Speed may vary due to the device being used, network congestion, distance from the cell site, local conditions and other factors.

More about Optik TV
Optik TV provides never before seen functionality and features. The internet-based service features PVR Anywhere, with one PVR acting as a server for the entire home so that Optik TV customers can watch and record shows on any TV, record up to three shows at once, and pause a program in one room and pick it up in another, right where they left off. Recently TELUS introduced Remote Recording, an application that allows Optik TV subscribers to manage their PVR recordings from any Internet connection, iPhone or select BlackBerry device. Optik TV also offers: Picture-in-Picture browsing; onscreen Call Display; HD Video On Demand; HD Pay Per View; and an improved search capability that enables effortless searches for shows and movies by actor, director, show title or sporting event, for immediate viewing or recording in the future. With Optik TV, TELUS customers can even use their Xbox 360 as a digital television box. It’s easier and more flexible than ever.

TELUS also offers TELUS Satellite TV service which complements TELUS’ Optik TV by expanding the availability of TELUS home bundles, including TELUS TV, home phone and High Speed Internet to more than 90 per cent of households across Alberta and British Columbia.

About TELUS
TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company in Canada, with $9.8 billion of annual revenue and 12.3 million customer connections including 7 million wireless subscribers, 3.7 million wireline network access lines and 1.2 million Internet subscribers and more than 300,000 TELUS TV customers. Led since 2000 by President and CEO, Darren Entwistle, TELUS provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video.

In support of our philosophy to give where we live, TELUS, our team members and retirees have contributed $211 million to charitable and not-for-profit organizations and volunteered 3.7 million hours of service to local communities since 2000. Nine TELUS Community Boards across Canada lead TELUS’ local philanthropic initiatives.

About TELUS Community Boards in Vancouver and Victoria
The TELUS Vancouver and Victoria Community Boards are made up of local community leaders and TELUS team members passionate about the communities where they live and work. They are committed to seeking out grassroots local charities and supporting them with donations and expertise. The TELUS Vancouver Community Board has funded 313 projects since its inception in 2005 donating $3.8 million. The TELUS Victoria Community Board has funded 108 projects since launching in 2007, also donating $1.2 million. Nationally, the TELUS Community Boards have allocated $25 million in support of close to 1900 innovative community projects.

For more information about TELUS, please visit telus.com. To learn more about TELUS’ commitment to the community, please visit our Corporate Social Responsibility report at TELUS.com/csr.