Second-largest Canadian carrier Telus Corp. (TU) has announced its capital investment plans to boost broadband services in British Columbia, the operator’s home market. The carrier aims to spend $650 million in 2010 for expansion and upgrade of its wireline and mobile broadband networks in that key market.

Telus expects its wireless and wireline broadband businesses to deliver healthy results in 2010 boosted by the significant investment made in 2009. Growth in broadband is helping the carrier to partly offset the sustained declines across local and long-distance voice businesses.

Major portion of the projected 2010 capital expenditure will be devoted to the ADSL2+ wireline broadband network deployments and advancement to VDSL2 network. Telus expects to complete the deployment of its ADSL2+ network in the current year, with a target of achieving roughly 90% of the key incumbent markets in British Columbia and Alberta. All major markets across these two provinces are expected to be covered with VDSL2 by the end of 2011.

Moreover, Telus remains committed to expanding its wireless broadband footprint in British Columbia leveraging the new HSPA+ standard based 3G network (enabling peak downlink speeds of up to 21 megabits per second) launched in November 2009 in collaboration with its Canadian peer BCE Inc (BCE).

Telus strategizes to offset erosion in its core wireline business with broadband data services and video (Telus TV). Growth in Telus TV continues to be boosted by increased adoption by high-speed Internet customers and premium feature additions. The carrier recently unveiled its new IPTV platform in British Columbia and Alberta.

Telus is exposed to an increasingly competitive environment which is set to intensify in 2010 with the entry of new wireless players. Nevertheless, we are encouraged by the company’s prospects in wireless and broadband driven by network upgrades, expanded distribution capabilities and a rich portfolio of next-generation devices and services.
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