Joe Grech

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Joe Grech

• President, Global Trading Partner Solutions
• Member of the TELUS Team

2
Agenda

• Who We Are
• The Market We Serve
• Strategy
• Delivering the Strategy
• Q A

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Who We Are

• Global extending the reach, improving quality
  lowering the cost of our network globally
• Trading relationships include customers,
  suppliers, competitors and shareholders. We will
  buy, sell increasingly trade capabilities
• Partner customers include telecommunications
  carriers, resellers, ISPs, ASPs, wireless
  cable-TV providers
• Solutions delivering innovative integrated
  IP, data, bandwidth, access and voice solutions

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TELUS Global Trading Partner Solutions
A team providing innovative integrated
solutions to national and global service
providers

• 700 million of revenue
• 280 employees

TELUS 2000 Revenue Mix
10
TELUS Global Trading Partner Solutions
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Market Factors

• Demise of Stentor increased international
  competition
• U.S. RBOC entry to long distance
• Wireless and cable focus on access
• New entrants wishing to stretch their brand
• Shifting backbone requirements
• Global industry forecasts
• Consolidation

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Strategy

• Building a passionate, focused team that is the
  benchmark within the Canadian wholesale market
• Creating value capability by enabling national
  international solutions

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Delivering the Strategy

• Strong customer relationships
• Unsurpassed industry market knowledge
• Carrier scale
• Lowest cost
• Reach
• Service
• Joint retail wholesale market entry

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Structure

• A team of industry experts with a unique
  structure

Strategic Accounts
Emerging Operators
ISP/ASP
Global Carriers
Québec
Sales Teams
Carrier Extension Services
Customer Care
Marketing
Business Enablers
9
Customers
10
2001 Revenue by Market Segment
Emerging Operators
ISP/ASP
QuébecTel
9
9
12
33
37
Strategic Accounts
Global Carriers
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Services
Wholesale solutions growing national revenues
attracting international business to Canada
through TELUS

• Optical Networking Solutions
• Tier 1 Internet Connectivity
• Access Dial DSL
• Global Tele-services

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TELUS IP Backbone

• Immediate, new TELUS revenue stream
• Global scale international opportunities
• Backbone for carriage of national retail and
  wireless traffic
• Industry cost service leadership

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Internet Access Transit

• TELUS is a Tier 1 Canadian Internet Transit
  Provider
• 75 of all Canadian Internet Hosts
• TELUS is the leading provider of Internet Access
  and transit services to ISPs in BC and Alberta
• and now we are going Global!

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Global Tier 1 Access
Global Crossing
Bell
NTT/Verio
Qwest
Level (3)
ATT
Genuity
SBC
Williams
UUNet
Sprint
Cable Wireless
PSINet
XO
EQUANT
AOL
The Tier 1 Club
Benefits of Tier 1 Access

• Drive down cost
• Premium pricing

• Higher Quality of Service
• Service Development

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Verizon Genuity

• Partnering for customers AOL
• Delivering VoIP to Canada
• Offering North American seamless bandwidth
  solutions DS-1 to OC-192
• Leveraging Verizon global network rollout
• TELUS is first choice for Canadian voice and data
  termination

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Global Tele-services

• Exploiting niche opportunities in the wholesale
  space

• 1 Competitive Operator Services 75
  share growing at 10 per year
• 1 International In-Collect grown to 60 share
  in 4 months

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Synergies with Retail Business
Total Settlements Annual Expense (M)

• Facilitating Growth
• Extending TELUS reach through Partnership
• Domestically
• Internationally
• Driving down cost

1999
2000
2001E
2002E
2003E
Average Monthly Local Access Unit Cost () (DS 1
equivalents)
500
450
400
350
300
250
200
150
100
50
0
1999
2000
2001
2002
2003
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Competitive Advantage

• Expanding customer relationships
• Delivering national solutions
• Enabling global capability
• Establishing effective partnerships
• Creating differentiated service quality
• Strengthening synergies with retail

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Any Questions?