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George Cope President & CEO, TELUS Mobility September 14, 2004 2004 Media & Telecom Conference Slide 2 2 This presentation and answers to questions contain forward- looking statements about expected future events and financial and operating results that are subject to risks and uncertainties. TELUS actual results, performance, or achievement could differ materially from those expressed or implied by such statements. For additional information on potential risk factors including those associated with the potential completion of the Microcell bid, see TELUS Annual Information Form, the Offers to Purchase and Circular, and other filings with securities commissions in Canada and the United States. TELUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All dollars in C$ unless otherwise specified. forward-looking statement Slide 3 3 about TELUS Mobility 31.8M: Cdn. PopulationLicensed POPs: 29.7M (93%)Network coverage: Verizon Wireless & NextelStrategic relationships: best in North AmericaSpectrum position: only one in Canada (Nextel in US)iDEN Mike network: coast to coast 1XCDMA footprint: $1.05B to 1.1B ( 29 to 35%)EBITDA (2004E) 1 : $2.675 to 2.725B ( 13 to 16%)Revenue (2004E) 1 : 3.6MSubscribers: leading Canadian national wireless provider 1 Guidance provided August 6, 2004 Slide 4 4 Canadian subscriber growth re-accelerating Q2-04Q2-03 4.4%3.5%Penetration gain 1.5M1.2MNet subscriber additions 31.8MPopulation31.5M 13.9MCdn wireless market12.4M 43.8%39.4%Penetration 12ME Slide 5 5 Source: Industry analysts 2003 42% 2007E 55-59% 2004 ~46% 13.4M subs 18-19M subs ~15M subs 4 million or more net adds expected over next 3 yrs Canadian wireless penetration growth prospects Slide 6 6 $1,617M $1,213M YTD Q2-04 YTD Q2-03 TELUS Mobility 31% TELUS Mobility 33% Source: Company reports. 1 Sum of reported wireless EBITDA for BCE, Rogers Wireless, Microcell and TELUS Mobility Industry EBITDA up 33% YTD Total industry EBITDA 1 Slide 7 7 TELUS Mobility EBITDA & cash flow growth 56% compounded EBITDA growth rate over four years 1 Guidance provided August 6, 2004 $173 $815 20032000 $356 2001 $535 2002 $1,050 to 1,100 1 2004E $(360) $455 $(288) $675 1 $75 EBITDA EBITDA less capex ($M) Slide 8 8 Net additions Net additions up 12% YTD, with 35% postpaid growth YTD Q2-03 170K YTD Q2-04 Prepaid Postpaid 190K Slide 9 9 Network revenue growth Network revenue up 20%. Total revenue up 19% YTD Q2-03 $1,019M YTD Q2-04 $1,218M Slide 10 10 TELUS MobilityBCE WirelessRogers Wireless $55 $46 $45 Source: Company reports $58 $48 $49 Microcell $38 $39 ARPU - continued industry leadership YTD Q2-03 YTD Q2-04 significant premium with positive industry-wide trend Slide 11 11 Price changes continue to roll through the base per minute billing - Jul-02 evening & weekend clock change - Jul-03 select calling features - Jul-04 minutes of use up 21% in 2003, 14% YTD Q2-04 expanding data offering (intercarrier SMS, 1X & RIM) roaming/resale agreements Verizons preferred Canadian PCS roaming partner iDEN roaming with Nextel in U.S. ARPU drivers Slide 12 12 Continued focus on retention evident with postpaid churn down to 1.0% in Q2 Churn low & stable YTD Q2-03YTD Q2-04 1.4% blended monthly churn YTD Q2-03YTD Q2-04 1.2% 1.1% postpaid-only churn Slide 13 13 3 year contracts improved coverage significant improvement in drop call rate expanded national footprint better phones grandfathered rate plans dedicated retention team excellent customer care levels Churn reduction drivers Slide 14 14 9%11%COA/ Lifetime revenue 1.4% Blended churn $58ARPU$55 $382COA$427 YTD Q2-04YTD Q2-03 $4,100 - $3,900Lifetime revenue Subscriber economics continue to improve profitable subscriber growth Slide 15 15 EBITDA growth of 41% & EBITDA margin of 44% EBITDA growth & margin expansion Wireless EBITDA YTD Q2-04 $380M 37% 44% $534M EBITDA margin 1 (network revenue) YTD Q2-03 1 EBITDA margin on total revenue 34% YTD Q2-03, and 41% YTD Q2-04 Slide 16 16 TELUS achieving profitable subscriber growth $737M 1.5M 12ME Q2-04 EBITDA growth 12ME Q2-04 subscriber growth Source: Company reports. Sum of reported net adds & wireless EBITDA for BCE, Rogers Wireless, Microcell, TELUS Mobility TELUS Mobility 40% 31% TELUS Mobility Profitable subscriber growth strategy Slide 17 17 Wireless capex 10% Capex intensity (total revenue) YTD Q2-04 $132M 12% $129M YTD Q2-03 Capex intensity declining Continued improvement in capex intensity Slide 18 18 Leading spectrum position - minimal cell splitting CDMA/1X roaming/resale agreements in Central & Eastern Canada Network digitization largely complete 1X network implemented, voice capacity improvement Mike (iDEN) network largely built out Capex drivers Slide 19 19 Wireless cash flow YTD Q2-04 $248M $405M YTD Q2-03 Cash flow (EBITDA less capex) Cash flow increased by $158 million or 64% in 1H04 Slide 20 20 13%Capex intensity 2 EBITDA margin (total revenue) 39-40% Cash flow yield 3 26-27% 2004E 1 1 Based on current public guidance 2 Capex as % of total revenue 3 EBITDA less capex, as a % of total revenue EBITDA margin ( network revenue) 42-43% 9.8% 40.5% 30.7% YTD Q2-04 43.8% operating cash flow yield Attractive wireless cash flow yield above plan YTD Slide 21 21 31% 21% 20% 17% 13% 11% 5% (1)% TELUS Nextel Rogers Verizon PCS Cingular AWE T-Mob USA YTD cash flow yield - North America Source: Company reports EBITDA less Capex / Total Revenue Implied cash flow yield of 26 to 27% in 2004 is best in class (38)% Microcell Slide 22 whats new? Slide 23 23 Text messaging Canadians are sending more than 1.1 million text messages a day, up 100% year over year By 2006, an estimated one billion messages will be sent worldwide every day Canadians now send more than 50M text messages per month Slide 24 24 Fastap TELUS Mobility exclusive Worlds first phone and full keypad Slide 25 25 Picture messaging award-winning marketing campaign significant share of sales by end of 2004 early usage stats encouraging Worldwide 29 billion digital images captured this year 2003: One in six wireless phones sold had digital camera Slide 26 26 Download delights DisneyHockey Slide 27 27 Blackberry New devices, US roaming on both iDEN & PCS Blackberry 7750Blackberry 7510 - iDEN Push to Talk Colour screen Slide 28 28 North American iDEN Direct Connect Slide 29 29 TELUS TV ads Slide 30 30 Attractive industry fundamentals Canadian wireless penetration accelerating No restrictions on spectrum holdings Wireless data market exploding ARPU up, churn down across industry Margins in excess of 40% Free cash flow yields expanding TELUS Mobility is the most profitable wireless carrier in North America Conclusion Slide 31 questions? Slide 32 investor relations 1-800-667-4871 telus.com ir@telus.com