TELUS Corporation
TSX : T
NYSE : TU

TELUS Corporation

March 06, 2015 11:14 ET

TELUS Acquires 15 MHz of AWS-3 Spectrum for $1.5 billion

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2015) - TELUS (TSX:T)(NYSE:TU) today announced it has secured spectrum licenses equating to a national average of 15 MHz in Canada's recently concluded AWS-3 auction. These licenses, which were acquired for $1.5 billion, are very complementary to the 16.1 MHz of national AWS spectrum TELUS purchased in 2008, which is now the foundation of the company's world-class wireless network. AWS-3 spectrum is well-suited for delivering both coverage and added capacity in urban and rural environments, and TELUS expects to incorporate it into the natural evolution of the company's existing network, accelerating TELUS' ability to bring new devices to market and deliver economies of scale on wireless infrastructure investments.

"The purchase and deployment of this spectrum will ensure that TELUS continues to operate one of the fastest and most reliable wireless networks in the world, consistent with our number one corporate priority of putting customers first," said TELUS Executive Chair Darren Entwistle. "TELUS has invested $3.8 billion in spectrum-related costs since the 2008 AWS auction, and has invested more than $32 billion in technology across the country since 2000. Thanks to our strong balance sheet, we are able to increase our spectrum position while simultaneously supporting our 2015 Capex targets as well as our multi-year share purchase and dividend growth programs, which will continue uninterrupted. Given the significant investment made by U.S. carriers TELUS is optimistic that the AWS-3 handset and network ecosystem will develop at an accelerated pace, allowing TELUS to quickly put this spectrum to use for our customers."

TELUS President and CEO Joe Natale said, "We are very pleased to secure such high quality spectrum across the country, and to have won 75 per cent of the spectrum available to us in this auction. TELUS is rapidly adding new customers and as a result we must continuously advance our network. Last year we added 357,000 postpaid wireless customers, and smartphone users now represent 81 per cent of our base. Today, we provide 4G LTE to 89 per cent of Canada's population, up from 80 per cent a year ago. This spectrum will allow us to enhance LTE coverage, particularly in urban areas, adding much-needed capacity for our more than 8.1 million wireless customers. Consistent with our commitment to rural customers, TELUS' network today reaches 99 per cent of the Canadian population."

TELUS' national average of 15 MHz of spectrum in the AWS-3 band is comprised of the following licenses:

Region Frequency Blocks Spectrum Acquisition
Southern Ontario J2 10 MHz
Alberta, British Columbia, Manitoba,
Eastern Ontario, Eastern Quebec,
Southern Quebec, Saskatchewan
J1, J2 20 MHz

Forward Looking Statements

This media release contains statements about future events, including with respect to spectrum deployment and network build-out plans, and our multi-year dividend growth and normal course issuer bid programs that are forward-looking. By their nature, forward-looking statements require the company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate and there can be no assurances that TELUS will complete these plans or maintain these programs. Future dividend payments and share purchases through TELUS' normal course issuer bid are subject to ongoing Board assessment and approval. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors (such as regulatory and government decisions, competitive environment, our earnings and free cash flow, and capital expenditures and spectrum licence purchases, and a change in our intention to purchase shares or increase dividends) could cause actual future performance and events to differ materially from that expressed in the forward-looking statements. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.

About TELUS

TELUS (TSX: T)(NYSE:TU) is Canada's fastest-growing national telecommunications company, with $12 billion of annual revenue and 13.7 million customer connections, including 8.1 million wireless subscribers, 3.2 million wireline network access lines, 1.5 million Internet subscribers and 916,000 TELUS TV customers. TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video, and is Canada's largest healthcare IT provider.

In support of our philosophy to give where we live, TELUS, our team members and retirees have contributed more than $396 million to charitable and not-for-profit organizations and volunteered and more than 6 million hours of service to local communities since 2000. Created in 2005 by Executive Chairman Darren Entwistle, TELUS' 11 community boards across Canada have led the company's support of grassroots charities and will have contributed $47 million in support of 3,700 local charities organizations by the end of 2014, enriching the lives of more than two million Canadian children and youth. TELUS was honoured to be named the most outstanding philanthropic corporation globally for 2010 by the Association of Fundraising Professionals, becoming the first Canadian company to receive this prestigious international recognition.

For more information about TELUS, please visit www.telus.com.

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