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November 6, 2009

Q3 2009 TELUS investor conference call. Robert McFarlane EVP & Chief Financial Officer Darren Entwistle President & CEO Joe Natale EVP & President, Consumer Solutions. November 6, 2009. TELUS forward looking statements.

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November 6, 2009

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  1. Q3 2009 TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Darren Entwistle President & CEO Joe Natale EVP & President, Consumer Solutions November 6, 2009

  2. TELUS forward looking statements Today's session and our answers to questions contain statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2009 guidance and a preliminary assessment of expected 2010 capital expenditure levels), qualifications and risk factors (including those associated with the deployment and operation of the new national high-speed packet access network and associated introduction of new products, services and systems) referred to in the Management’s discussion and analysis in the 2008 annual report, and in the 2009 first, second and third quarter reports. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

  3. Agenda • Wireless and wireline segment review • Consolidated financial review • Updates • OEP • 2009 guidance • Corporate developments • Questions and Answers 3

  4. Wireless segment – Q3 2009 financial results      Data revenue & subscriber growth offset by voice ARPU erosion Capex reflects investments in HSPA network build 4

  5. Wireless subscriber results Wireless subscribers Total net additions 1.2M Prepaid 19% 149K 125K Postpaid 81% 5.2M Q3-081 Q3-09 6.4 million total 1 Includes the impact from analogue network turndown of 27.6K subscribers. Postpaid additions stable at 131K and represented 105% of mix 5

  6. Wireless ARPU Data % of ARPU Voice $64.14 $59.45 16% 10.19 12.05 20% 84% 53.95 80% 47.40 Q3-08 Q3-09 Q3-08 Q3-09 ARPU consistent with YTD trend down 7% due to voice erosion partially offset by good data growth 6

  7. Blended wireless ARPU trend $64.14 $62.73 $61.88 $62.16 $59.45 $58.61 $58.39 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 ARPU has been stable to slightly increasing YTD since significant drop in Q4-08 7

  8. Wireless data revenue $229M $181M $116M BlackBerry Tour Q3-08 Q3-09 Q3-07 27% annualized data growth driven by continued smartphone adoption and to be enhanced by iPhone launch 8

  9. Wireless marketing and retention      1 Q3-08 includes impact from analogue network turndown of 27.6K subscribers, otherwise churn was 1.52%. Note: Measurement of costs of acquisition and retention refined in 2009. Prior year comparisons restated. COA decrease due to lower marketing expenses and commissions Investments in retention focused on smartphones 9

  10. Wireline segment – Q3 2009 financial results      1 Excluding defined benefit pension expenses from both periods, operating expenses down 5.4% EBITDA impacted by restructuring and pension costs Continued higher capex to support broadband expansion 10

  11. Wireline segment – EBITDA normalized   Underlying EBITDA up 1% when excluding DB pension expense and restructuring costs 11

  12. Internet subscribers High-speed Internet net additions Internet subscribers 96K Dial-up 8% 13K High-speed 92% 9K 1.1M 1.2 million total Q3-08 Q3-09 HSIA net adds improved sequentially but lower YoY 12

  13. TELUS TV subscribers TELUS TV net additions1 TELUS TV subscribers1 137K 22K 63K 12K Q3-08 Q3-09 Q3-08 Q3-09 1 Includes both TELUS IP TV and TELUS Satellite TV subscribers Strong subscriber growth with net adds up 83% Total subscriber base up 117% 13

  14. Stabilized residential NAL losses Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 -41K -41K -41K -42K -48K -51K -53K 4th consecutive quarter of YoY improved residential line loss Stabilizing due to effective winbacks and bundling efforts 14

  15. Consolidated – Q3 2009 financial results       1 Q3-08 capital expenditures exclude $882 million payment for AWS spectrum licenses otherwise capital expenditures down 59%. Consolidated results impacted by economic softness and increased restructuring and pension costs 15

  16. Consolidated – EBITDA normalized  Normalized EBITDA flat when excluding DB pension expenses and restructuring 16

  17. Investing in operational efficiency Total restructuring costs ($M) approx. $160 Expected Actual 59 53 $113 38 32 28 10 4 Q4-08 Q2-08 Q1-09 Q2-09 2008A 2009E* Q3-09 Q3-08 Emphasis on operational efficiency initiatives driving increased restructuring costs 17 * See forward looking statement caution

  18. Analysis of full time equivalent employees     • TELUS International reduction not necessarily indicative of full year trend 1 Total (domestic) excludes 700 FTEs from the Black’s Photography acquisition. Exceeding YE target of >1500* reduction in domestic FTEs 18 * See forward looking statement caution

  19. EPS continuity $0.88 $0.89 $0.02 $0.02 $0.02 $0.84 Excl. Tax Adj. ($0.06) ($0.05) Q3-09 Reported Q3-08 Reported Lower shares o/s & lower tax rates Other Dep’n and Amort Restr. costs Pension costs EPS up 7% excluding restructuring & pension costs and four cents of positive tax-related adjustments 19

  20. Consolidated guidance update 1 Underlying EBITDA growth would be (2)% to flat adjusted for restructuring of $59M and approx. $160M in 2008 and 2009E respectively, and a $118M increase in 2009 defined benefit pension expense Revised guidance reflects revisions to both wireless and wireline segments 20 * See forward looking statement caution

  21. Preliminary 2010E capex outlook ($B) ~$2.1 $1.75 2009E* 2010E* 2006 – 2008 average1 1 2008 excludes payment for wireless spectrum. Expecting 2010E capex to be as low as $1.7 billion returning to 2006 - 2008 average historical levels 21 * See forward looking statement caution

  22. Balancing interests of equity and debt holders Dividend maintained and moving to 3% discount on dividend reinvestment and treasury share issuance CRTC’s Globalive foreign ownership and control decision CRTC had no choice but to uphold federal law and clearly outlined the nature of Globalive’s considerable non-compliance Globalive can restructure its affairs to remedy their situation Political interference is not appropriate to remedy situation, but in any event, any possible Cabinet review should be a public process TELUS never against foreign ownership, just that rules should apply uniformly to all communications companies in Canada Situation highlights need to pre-qualify bidders in future auctions as TELUS has consistently advocated Other developments 22

  23. Darren Entwistle President & CEO Joe Natale EVP & President, Consumer Solutions

  24. Black’s Photography • In September, acquired 113 retail stores across Canada • Most in premium mall locations • 72% based in Ontario • Launched camera phone sales November 5 Addition of Black’s stores strengthens TELUS’ wireless distribution 24

  25. TELUS launches Canada’s largest 3G+ network • HSPA network launched November 5 • Provides service to more than 30 million Canadians • Enabling wireless applications with fast download speeds • International roaming to more than 200 countries • Clear strategic and competitive advantages TELUS to benefit from future global ecosystem, economies of scale and enhanced roaming revenues 25

  26. TELUS vs Rogers - HSPA eastcoverage * Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change. 26

  27. TELUS vs Rogers - HSPA westcoverage * Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change 27

  28. TELUS launches iPhone 3GS Running on Canada’s largest 3G+ network 28

  29. TELUS launches BlackBerry Bold 9700 • Full QWERTY keyboard • Easy HTML browsing with trackpad navigation • 3.2 megapixel camera Running on Canada’s largest 3G+ network 29

  30. TELUS’ a leader in smartphones Sierra 306 Internet Key LG New Chocolate Nokia E71 HTC Hero Running on Canada’s largest 3G+ network 30

  31. TELUS’ simple and clear wireless pricing • New Clear Choice™ suite of wireless consumer rate plans • New Clear and Simple™ business rate plans • Based on feedback from Canadians • Consistent with TELUS’ future friendly brand promise • Fewer and simpler rate plans • No SAF or carrier 911 fees • Generalrate plan increase of $5 with basic voicemail 3 • Expect loading, churn and cost efficiency benefits Simplified rate plan structure supports focus on AMPU 31

  32. Results and guidance impacted by recession, competitive intensity and introduction of new devices Continued execution on operating cost efficiency Strategic investments in broadband coming to fruition Early launch of HSPA network and device offerings Acceleration of TELUS TV service Leading change in wireless market for benefit of Canadians Summary Strategic project execution is significantly improving TELUS’ operational and competitive position 32

  33. Questions? investor relations 1-800-667-4871 telus.com ir@telus.com

  34. Appendix – free cash flow C$ millions 2008 Q3 2009 Q3 975 923 EBITDA (473) (558) Capex (25) 3 Net Employee Defined Benefit Plans Expense (Recovery) (27) (31) Employer Contributions to Employee Defined Benefit Plans - (882) Spectrum (19) (43) Interest expense paid (includes income tax interest income) (2) (48) Cash Income Taxes and Other 12 5 Non-cash portion of share-based compensation (9) 3 Restructuring payments (net of expense) (4) (5) Donations and securitization fees included in other expense (479) 274 Free Cash Flow (before share-based compensation payment) (8) (3) Share Based Compensation Paid 266 (482) Free Cash Flow (per current public guidance methodology) - (75) Purchase of shares for cancellation (NCIB) (149) - Dividends (Q2-08 dividend remitted June 30, 2008) (26) 5 Acquisitions (includes proceeds from sale of property and other assets for Q3’08) (13) 9 Working Capital and Other (543) 78 Funds Available for debt redemption 100 - A/R Securitization 433 (70) Net Issuance (Repayment) of debt 34 (10) 8 Increase (Decrease) in cash

  35. Appendix - 2009E Free cash flow* Appendix – 2009E Free cash flow 2009E ($M) EBITDA (after restructuring) $3,475 to 3,575 ~(2,100) Capex Net Cash Interest ~(415) ~(270) Net cash tax payment 20 Other Free Cash Flow $710 to 810 ~(175) Cash pension contribution (in excess of expense) Free Cash Flow1(pre-dividend payments) $535 to 635 1 see Free Cash flow definition on Appendix slide 35 * See forward looking statement caution

  36. Appendix – definitions • EBITDA: earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization • Capital intensity: capex divided by total revenue • Cash flow: EBITDA less capex • Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees • Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue TELUS definitions for non-GAAP measures

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