3rd quarter 2003 TELUS Mobility results

1
3rd quarter 2003 TELUS Mobility results

• George Cope, CEO
• TELUS Mobility

2
net additions
Q3-03
Q3-02
94K
101K
TELUS continues focus on profitable subscriber
growth with net adds up 7.5 YoY
3
ARPU increasing
third consecutive quarter of YoY ARPU increases
4
ARPU continued industry leadership
60
Q3-02
58
Q3-03
50
50
47
47
TELUS Mobility
Rogers ATT
BCE Wireless

• Source Company reports

positive industry-wide trend
5
churn
1.7
1.4
1.7
Q3-03
Q3-02
churn
continued focus on retention evident in results
6
churn
3.31
3.01
2.8
2.7
2.7
2.0
1.9
1.4
1.4
1.4
BCE
Cingular
TELUS
Verizon
ATT
Rogers
Nextel
Sprint PCS
Microcell
T-Mobile
1 Microcell, T-Mobile USA Q2-03 churn rates
TELUS Q3 churn rate remains best-in-class
7
profitable subscriber growth
subscriber economics improving
8
EBITDA growth margin expansion
246M
EBITDA margin (network revenue)
43
165M
33
Q3-03
Q3-02
Wireless EBITDA ()
industry leading EBITDA growth of 49 EBITDA
margin of 43
9
EBITDA less capex
150.4M
67.8M
Q3-03
Q3-02
83M cash flow improvement
10
operating cash flow yield
Q3-03
EBITDA margin1
43
15
Capex intensity2
Cash flow yield3
24
1 EBITDA margin based on network revenue. EBITDA
margin based on total revenue was 39 for Q3-03
2 Capex as of total revenue 3 EBITDA less
capex, as a of total revenue
attractive wireless cash flow yields improving
11
TELUS Mobilitys price-matching strategy
12
new servicesMike goes nation-wide

• nation-wide Direct Connect
• expanded handset line-up
• coverage expansion in BC AB

13
new servicesPCS - camera phones picture
messaging

• Product differentiation
• exclusive, cool devices
• no subsidy, unless on contract
• first CDMA carrier in Canada
• send receive images with sound
  text between camera phones
• 25 cents per picture message sent
• strong branding campaign

14
conclusionQ3 TELUS Mobility value creation

• Net additions 101k ? 7.5
• Churn 1.4 ? 30 pts
• ARPU 60 ? 2
• Network rev. 577M ? 17
• EBITDA 246M ? 49
• EBITDA margin 43 ? 9 pts
• Capex intensity 15 ? 3 pts
• Cash flow 150M ? 83M

all key metrics moving in right direction for
continued creation of significant shareholder
value