2004 canadian telecom summit darren entwistle member of the telus team
TRANSCRIPT
2004 Canadian telecom summit
Darren Entwistlemember of the TELUS Team
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…to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move
tracking against strategic imperatives2000 2004
1. build national capabilities
2. provide integrated solutions
3. focus on growth markets of data & wireless
4. going to market as one team
5. partner, acquire & divest as necessary
6. invest in internal capabilities
1. build national capabilities
…to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move
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383 Ont/Que cities
892 Co-locations
2235 Customer POPs
13,6000 Fibre lit (km)
Next Generation (NGN)Circuit-based Network
TELUSStentor Platform
Mar 2004Jan 2000Communications
NGN delivers enhanced customer data & IP services and operational cost savings
national transformation
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29.97 PoPs covered (millions)
3G1G Technology / Generation
25- Mike (iDEN) (millions)
Mar 2004Jan 2000Mobility
key to driving profitable growth
subscribers have tripled to 3.5 million operating earnings have quintupled to $884 million
national wireless transformation
5
(18)
21
16
13
8
(2)(3)
(5)(6)
(14)
(2)
1314
2 1
(0.3)
3
Telia FT DT KPN TELUS MTS Telstra Nippon BCE
As at March 1, 2004
Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 resultsOther results provided by Bloomberg, company, and analyst reports
EBITDA1 % growth rates
BT PSSW Sprint Aliant BLS VZ SBC AT&T
2003 global telecom performance
6
(24)
94
63
29
19 17
4 4 3
(4)
(16)
(0.1)
1 1
20
7
46
TELUS FT Telia DT MTS FON BCE KPN Aliant Nippon BLS Telstra PCCW
Cash Flow (EBITDA1 - Capex) % growth rates
As at March 1, 2004
Notes: 1 Excluding restructuring TELUS data based on 2002 & 2003 resultsOther results provided by Bloomberg, company, and analyst reports
AT&TVZBT
Sprint
SBC
2003 global telecom performance
7
7 7
4 4 3 3
(1)
(6)
(8)
(20)
123
6
0.4
(0.4) (1)TELUS FT DT MTS Sprint Aliant Telstra BCE BT Nippon Telia
2004E global telecom performance
AT&TBLSSBCPCCWVZ KPN
As at April 30, 2004
Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports
projected EBITDA % growth rates
8
1411
4 3 21
(3) (3)
(6)
(9) (10)
(28)
0.2
(1)(1)
0.4
5
TELUS Aliant Telia FT Sprint BCE Telstra DT Nippon
2004E global telecom performance
projected Cash Flow (EBITDA - Capex) % growth rates
As at April 30, 2004
Notes: TELUS data based on 2003 results & mid-point of 2004 targets Other estimates provided by Bloomberg, company and analyst reports
AT&TBLSSBCPCCWVZ KPNMTSBT
9
PCS
2.82.7
1.6
2.1
1.71.5 1.3
BCEVerizonCingular Rogers Nextel
3.7
2.9
AWE TELUSMicrocell
TELUS Mobility lifetime customer revenue $3,800
Q1-04 monthly % churn rates
wireless customer satisfaction = low disconnects
10
Exceeded CRTC standard1Service Indicators
Complaints
Directory Services
Local Service
Repair Service
Service Provisioning
1company report on 19 CRTC quality of service indicators and standards for March 2004
TELUS setting new historical records in customer service
customer service improvements
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challenges in the marketplace
timeliness of decisions market is changing at incredible pace
customers demand benefits of new technologies - like IP - instantly
ability to deliver innovative services tied to timely regulatory decisions
competitors are largely unregulated
turnaround time for decisions must improve
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challenges in the marketplace
consistent application of policies TELUS & other ILECs invested in infrastructure
based on facilities-based competition policy
subsequent regulatory actions create uncertainty
need to set policy, then stay the course
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challenges in the marketplace
lost opportunities delay and indecision have a price
deferral account example:
roughly $800 million nationally
CRTC process could add two more years
Broadband Task Force = $1billion to bridge digital divide
TELUS proposal addresses divide
industry & CRTC must work together to change
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challenges in the marketplace
disruptive nature of VoIP technology VoIP more than new way to deliver POTS
decouples service from underlying transport
multiple VoIP flavours challenge traditional regulatory approaches
business challenge – deliver promise of IP
regulatory challenge – treat all competitors equally
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a transformation strategy
key performance indicators
focus on essentials
compliance and enforcement
don’t favour or disadvantage particular competitors
adapt to disruptive change
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a transformation strategy
key performance indicators
tariffs 45 days
competitive disputes 90 days
one issue proceedings 180 days
multi-issue proceedings 365 days
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a transformation strategy
focus on essentials
establish strategic regulatory imperatives
set priorities
identify and eliminate what is no longer necessary
re-deploy resources to accomplish mission critical activities
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a transformation strategy
compliance and enforcement
punish the bad apples; don’t constrain the good guys
increased competition = increased pressure to rely on market discipline
everyone incented to comply, if enforcement measures are strong
CRTC needs right compliance tools and authority
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a transformation strategy
don’t favour or disadvantage particular competitors
trend to favour competitors, not competition
undermines sustainable competition
regulatory objective should not be generating regulated margin for our competitors
CLECs don’t need TELUS customers to finance their growth
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a transformation strategy
adapting to disruptive change
VoIP regulatory framework
VoIP services don’t fit traditional regulatory boxes
CRTC should use wireless approach … did not regulate providers in nascent marketplace
TELUS should be able to compete in VoIP on equal footing with others
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a transformation strategy
adapting to disruptive change
local market forbearance
time for clarity
what is target market share loss?
consider local telephone service substitutes
competition increasing rapidly; need regulator ready to act
thank you