Q4 2020 Telus Corp Earnings Call

February 11, 2021

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[music].

Conference recording has been turned on.

Good morning, ladies and gentlemen, welcome to the Telus 'twenty 'twenty Q4 earnings conference call.

I would like to introduce your speaker Mr. Robert Mitchell. Please go ahead.

Hello, everyone and thank you for joining us today, our fourth quarter 2020 results news release, MD&A and financial statements and detailed supplemental investor information are posted on our website. This morning at Telus Dot Com slash investors.

On our call today, we will have remarks by Darren Entwistle, President and CEO, Jeff here at Executive Vice President and President and CEO of Telus International and Doug French Executive Vice President and CFO.

Q&A portion of our call we will be joined by Jane will know Gee President on solutions, Jim Senko, President mobility solutions Cresswell Grattage group President share of Telus Health, Telus, Quebec, and Tony Garen, EVP and Chief customer Officer.

Darren will take the lead in the question session and allocate the questions out to either sneakers as appropriate.

Briefly on slide two this presentation and answers to questions contain forward looking statements that are subject to risks and uncertainties and made based on certain assumptions. Accordingly actual performance could differ from statements made today. So we ask that you do not place undue reliance upon them, we disclaim any obligation to update forward looking statements, except as required by law and we refer you to.

For the risks and assumptions as outlined in our public disclosures, including fourth quarter, and 2020, MD&A and filings with securities commissions in Canada, and the U S with that over to you there.

Thanks, Ramirez Hello, everyone for 2020, Telus once again achieved strong operational and financial results in both our wireline and wireless businesses.

This is a trend the Telus team has demonstrated over the longer term and in 2020 realized against the backdrop of an unprecedented operating environment our.

Our performance in the fourth quarter and for the full year was characterized by our hallmark combination of robust high quality and profitable customer growth alongside strong financial results.

The quarter concluded another year of industry, leading customer net additions of 777000, including an all time record for annual wireline subscriber growth of 240000.

Thanks for the decisive action and active cash management, our full year cash flow of one dot for three $5 billion was within the one dot for to $1 7 billion dollar range that we initially targeted back in February of 2020.

This was achieved alongside five dot, 2% revenue growth and zero debt, 2% EBITDA growth for the full year.

These results were realized due to our team's resiliency, including our relentless focus on improving our cost structure, while driving important growth opportunities to mitigate some of the downside pressures we were experiencing.

Notably Telus was the only telecom provider amongst our national peers to report positive EBITDA growth for the year.

Moreover, excluding the effects of COVID-19, we achieved EBITDA growth of 6% in 2020.

Our industry, leading subscriber growth was driven by our team's passion for delivering outstanding customer experiences day in and day out this.

This in turn contributed to strong and enhanced client loyalty across all of our key product lines, including postpaid mobile phone Internet and TV churn all achieving a below 1% churn rate in the fourth quarter and for the year.

This performance was backed by our highly engaged team world, leading wireless and fiber broadband networks strong digital capabilities and our superior service offerings.

Let's take a look now at our wireless business.

Fourth quarter network revenue decreased by 1% as our consistent focus on strong and profitable growth was offset by reduced roaming revenue.

As a result wireless EBITDA was down one day, 1%, partially mitigated by an intense focus on cost management by the team.

Doug is going to provide more detail on these financials in just a moment.

For the fourth quarter, our team achieved 87000 mobile phone net additions up 17000 over last year in terms of connected devices. We realized strong net additions of 88000 up 28000 on a year over year basis, reflecting increased demand for our Io.

<unk> solutions.

Overall wireless net additions inclusive of mobile phones and connected devices were 175000 in the quarter, which was up 45000 over this time last year.

Importantly, our team delivered another quarter of best in class loyalty results.

Blended mobile phone churn was one debt zero, 9%, representing an 11 basis point improvement over the last year.

Underlying this result, postpaid churn of $0, 93% was better by three basis points compared to a year ago.

Indeed, 2020 represented our seventh consecutive year of industry, leading postpaid wireless churn below 1%.

As a key factor in this achievement the efficacy of our ongoing investments in our globally, leading broadband networks continued to be evidenced by major independent reports again in 2020 by.

By way of example, Telus as wireless network was recognized by UK based open signal as the fastest in the world and by U S phase II as the fastest and most expensive on a national basis.

Both awards have now been received by Telus for four consecutive years.

In addition for the second year in a row Canadian base to Tele placed Telus first in respect of quality latency and download throughput for our wireless network on a national basis.

Building on these accolades Telus was recently named Canada's most respected mobile service provider and a survey of Canadians from coast to coast conducted by UK based marrow blue.

This recognition acknowledges telus has reputation across customer service excellence, our team culture, our contribution to our communities, our diversity and inclusiveness and our overall brand trust.

To close on our wireless results Abu and <unk> declined by approximately $3 seven and three 4% respectively in the quarter.

This of course reflects industry wide pressure on romijn associated with pandemic related restrictions and reduced travel.

Partially mitigating this we continued to thoughtfully migrate our base to our endless data plans with more than 60% of rate plan changes in the quarter, representing step ups for remaining flat whilst holding the line on our premium brand <unk>.

This does set us up nicely for the increased commercialization of <unk> and the opportunity to lead innovation and increased productivity in areas, such as health care Smart cities and smart buildings home automation and digital life and AG Tech whilst further monetize.

<unk>, our network investments across <unk> and fiber.

Turning now to our wireline results, where Telus once again delivered a very strong quarter.

Fourth quarter wireline revenues increased by 14% and EBITDA increased by one 5%.

These results reflect the increased contributions from Telus is internet growth at home and business Smart security technology as well as growth from Telus International which are going to speak to in a moment as well Jeff PURA.

Telus is wireline financials were driven by data revenue growth of 22% through a combination of higher revenues from our diverse portfolio of services and solutions, including robust growth in Internet and third wave data services as well as a resilient perform.

<unk> from our TV offering.

It also includes strong growth in home and business Smart technology inclusive of security and.

It includes increased revenues from the hybrid scaling of our virtual health care solutions and.

And finally it includes resilient performance at Telus International Thanks to our GI team and it is inclusive of organic growth as well as the successful competence call Center acquisition.

Doug is going to provide more details on our wireline financial performance and the temporary COVID-19 related impact that we've had to navigate but we've navigated them successfully.

Looking at our robust customer expansion in wireline.

Our company and our team achieved fourth quarter Internet net additions of 44000. This represents an increase of 16000 additions on a year over year basis.

This was buttressed by a churn rate below 1%, which alongside a solid double digit percentage increase in monthly recurring revenue for new customer additions continues to bode well for future lifetime economics for our growing Internet business.

Also supported by churn being below 1%, we realized healthy TV net additions of 20000, which represents a 5000 increase over last year.

Notably residential voice line losses came in at 9000 in Q4, representing yet another quarter below 10003 thousand improvement again over last year.

Furthermore, we delivered industry, leading growth in our security business with additions of 23000 up 8000 on a year over year basis, and this is a north American industry, leading result, as it relates to the excellence of our security operations and the team delivering these.

Great results.

In summary, total wireline argue net additions of 78000 were up 32000 year over year. This represents our best fourth quarter wireline loading on record.

These results underscore the unique and attractive bundled offers available to customers across our superior product portfolio and our teams focus on leveraging the competitive differentiation that is truly inherent in our pure fiber network.

In that regard at the end of 2020 are pure fiber coverage stood at 81% of our high speed broadband footprint up from 70% at the end of 2019.

This is a positive progression for five G as well given the potent synergies between the two technologies that I've talked about for so very long.

Like our wireless network or fiber network continues to receive important recognition from independent authorities.

U S based PC Mag ranked our pure fiber network as best for gaming in 2020, given the symmetry and the quality of the network and they named tell us the fastest internet service provider on a national basis.

At a time when the speed.

Quality and Expansiveness of our networks has become more important than ever for Canadians. These recognitions, both for our wireless and wireline broadband networks are particularly resonant.

I am deeply grateful to the entire Telus team for the exceptional grid. They demonstrated during the exceedingly challenging year and the way that their talent and commitment came to the forefront.

Indeed at the outset of the pandemic many customer facing team members were redeployed to support our clients virtually or pivoted to provide assistance remotely or through virtual installations and repairs.

As a result, we avoided team member departures and continued to deliver outstanding customer experiences during the most challenging of times.

This was evidenced by our industry, leading customer loyalty rates and by earning an industry leading score of 75% in respect of consumers likelihood to recommend <unk> products recommend our services and recommend our people and when we talk about industry.

Leading on the customer service excellence front it goes beyond national to global.

Our team's ability to consistently earn enhanced customer loyalty and drive profitable growth over the longer term provides us with confidence in delivering on the 2021 targets that we announced today on the back of strong fourth quarter and 2020 operational and.

Financial performance delivered by our team.

This includes industry, leading 2021 revenue and EBITDA growth of up to 10, and 8% respectively alongside free cash flow of approximately one $5 billion that we're targeting in 2021.

Whether it's revenue or EBITDA or cash flow clearly the financial parameters for Telus are compelling compelling.

Compelling today retrospectively and prospectively these.

These objectives will be buttressed by smart broadband network investments and our highly differentiated and potent asset mix in combination with a strong balance sheet to support sustainable long term growth for.

Furthermore, the unparalleled scale and innovation of our dedicated team underpins our industry, leading multiyear dividend growth program now although it is hard to believe in its 11th year and targeting annual growth between seven and 10% through 2022.

Finally, I'd like to address our recent IPO of Telus International, which we successfully completed last week with Ti embarking upon its next journey as a publicly traded company on both the Toronto and New York stock exchanges.

This was undoubtedly a monumental achievement for our team.

Notably, establishing an important growth currency for Ti's continued global expansion with a market capitalization of more than $10 billion.

It was indeed, an historical accomplishment, representing the largest technology IPO in <unk> history, and one of the largest ipos in the history of Canadian capital markets with total aggregate proceeds of almost $1 5 billion.

Proudly. This also represented the fulfillment of an important aspirational goal for me personally.

To achieve an enterprise value for Ti exceeding the $8 billion market cap of Telus two decades ago. When we first embarked on our national growth strategy really is the fulfillment of an ambition.

And when the progeny can outgrow the origin to the parent there's something meaningful and poetic about it congratulations for the team in that regard.

The significant value creation reflect the steadfast focus of both Telus and the Ti teams and emulating the parameters of Telus is success.

Over the last 15 years <unk> has evolved into a digital customer experience innovator that harnesses the power of technology to provide truly outstanding customer and community experiences on a global basis.

With Telus, retaining a controlling interest and a 55% economic stake we remain extremely confident in <unk> future as it continues to drive better business outcomes and grow value for all shareholders.

Jeff will talk more about Ti in just a minute.

Ti success story reinforces the efficacy of our strategy of organic growth.

Well executed complemented by selective and thoughtful acquisitions as we look to build scale in exciting emerging growth businesses like Telus health, Telus security and tell us agriculture evolving them into tremendous assets of consequence in the future.

Our integrated and broad portfolio of data technology solutions within these growth verticals combined with a strong financial growth profile further enhances the highly differentiated value that we're creating for our investors.

On that note earlier this week Telus announced the strategic alliance with Google Cloud to co innovate on new services and solutions that support digital transformation within key industries, including Communications Technology Health care, Agriculture security and our connected home solutions.

<unk> this.

This 10 year collaboration will accelerate Telus This network innovation initiatives and our digital transformation journey, enabling further operational agility agility and truly enhanced customer experiences that differentiate us from the competition and a weighted it's meaningful for our customers.

This announcement came to fruition in large part due to the strong partnership Telus International and Google have enjoyed over the past decade.

Notably our international team has provided complex next generation digital.

And customer experience solutions to Google while they in turn have helped to drive <unk> digital evolution.

Telus This strategic partnership with Google will propel our digital leadership, while it's amplifying our customers first priority redefining how service is delivered in Canada and globally.

In a year like no other as we manage through the ongoing global pandemic. The Telus team continued to do good in the communities, where we live work and serve as citizens we.

We expanded our Telus health for good program with the launch of seven New mobile health clinics in 2020 and on an additional two clinics in January of 2021, bringing our total debt 13 mobile clinics nationwide.

Throughout 2020, our mobile clinic supported 28000 patient visits, including administering 12700, COVID-19 assessment in tact.

Furthermore, our Telus family contributed $85 million and perhaps more importantly from our Hearts, one dot two 5 million hours of volunteerism charitable and community organizations in 2020.

Our team's leadership in social capitalism was once again recognized on a global basis.

Telus ranking 50 for on the corporate Knights 2021, Global 100, most sustainable corporations index for the ninth time <unk>.

<unk> tell us the highest ranking telco or cable co in North America.

These are outstanding achievements and I remain exceedingly proud of and grateful for the entire Telus team.

On that positive note, Jeff I'll hand, the call over to you to talk more about the exciting progress at Ti and on how briley to future you have.

Thanks, very much Darren and Hello, everyone. It is indeed, a very exciting time for the entire Telus International team with our successful IPO last week on both the New York and Toronto stock exchanges.

During third marked on a historic milestone in our company's decade, and a half long journey from a single delivery location in the Philippines to a globally scaled digital customer experience leader operating in over 20 countries around the world the.

The success of our IPO was a validation of our long term digital strategy, our focus on customer service excellence and our internationally recognized social purpose impact.

And Ti as Darren just mentioned the largest tech IPO in <unk> history.

Heartfelt gratitude goes out to our 50000 highly engaged team members around the world our more than 600 valued clients and of course to tell us and baring private equity Asia for their guidance and unwavering support.

As a leading innovator that design build and delivers nextgen solutions for global and disruptive brands.

<unk> International has a unique approach to combining digital transformation in CX capabilities across the full customer experience value chain.

Our highly engaged global team continued to execute very well in Q4, our ability to leverage our carrier grade infrastructure to help bring our differentiated culture to life.

Virtual environment has been a source of our strength.

As a result, Telus international has proven to not only be resilient through the prolonged pandemic, but we've also demonstrated our ability to continue growing our business.

In connection with our IPO Ti disclosed preliminary results for 2020, which highlighted our performance.

With estimated 2020 revenues of approximately $1 6 billion U S dollars representing year over year growth of circa 15% and adjusted EBITDA margins of circa 24%.

Ti is expected to report strong year end results for 2020, when compared against 2019 on a pro forma basis, including our CCC acquisition.

Worth noting here. These impressive results do not include our recent Lionbridge AI acquisition, a leading global data annotation business fuelling AI algorithms with the world's largest technology companies. This acquisition closed on December 31, and integration is well underway.

In this regard I'd also like to take a moment to welcome our newest team members into the Ti family I am so excited about our combined capabilities, including the natural adjacencies that exist within our trust and safety practice in particular.

Indeed, we are continuing to define a new category at the intersection of digital.

And digital customer experience and we expect to amplify and accelerate our go to market strategy through demonstrable scale proven digital capabilities in a differentiated culture let.

Let me now turn the call over to Doug for a detailed update on Telus is Q4 financial results.

Over to you.

Thank you, Jeff and Hello, everyone.

Same thing with our prior quarterly results, we continue to deliver on high quality subscriber growth with mobile phone net additions.

Close to 25% over last year.

More importantly, the mix of our customer base continues to shift towards our premium Telus postpaid brand and more and more on our customers are choosing peace of mind unlimited data plans.

We continue to ensuring we get the most out of our cash Coa and CLR spend including reducing traditionally non recoverable subsidy and obtaining a reasonable economic payback within the customer's contract term.

This consistent and thoughtful approach.

Has and will continue to benefit our financial position as evidenced by our leading financial including strong network revenue trends.

Additionally, the quality of our loading is enhanced by the bundling of our mobility and home offerings contributing to high customer loyalty.

Network revenue declined 1%, including the impact of $63 million related to lower roaming revenue.

<unk> net impact our network revenue would have grown by more than 3% reinforcing the quality of our loading profile.

But more importantly, the quality of our subscriber base.

Our current assumption is that roaming recovery will begin slowly in the second half for 2021.

However, the roaming recovery would be largely dependent on the pace of the global vaccine rolling and the easing of travel restrictions, notably.

Notably between Canada, and the U S and we expect this will not be on a full recovery until 2022 at the earliest.

Mobile phone ARPA declined three 4% representing sequential improvements from 5% decline in Q3, and a $5 eight decline in Q2, the trend is aligned with our high quality loading and customer mix over the past 12 to 24 months.

When excluding the roaming impact RFP would have grown by approximately 6%.

Our Q for wireless adjusted EBITDA declined one 1%, reflecting the flow through of the lower roaming revenue.

This result.

Represent a stable on a sequential improvement from Q3 and Q2.

Wireline revenue increased by 14% year over year and wireline adjusted EBITDA growth of one 5% remained in line with the previous quarter.

These results reflect continued strong performance from acquisitions as well as our organic growth across our business.

Related to the acquisitions. We're also working through from near term J curve impact as we look to integrate and elevate the value of our recent acquired assets across Telus health and tell us agriculture.

We saw some recovery in Q3 and into Q4, we continue to see temporary impact on some of our business customers as they navigate their own pandemic related headwinds.

In addition, we've had to absorb the impact.

Good day, Telus health and earlier in the year to Telus International operations on temporary site closures and restricting access.

With the strong customer growth.

In both segments that we have spoken about there's also upfront costs associated with that however, we are encouraged by the underlying trends with improving monthly revenue for.

Both new and renewing customers and increased product intensity across all our product set.

And as always we are relentlessly focused on strong cost containment initiatives across organization.

On a consolidated basis Q4 revenue grew five 2%, bringing our full year revenue growth of five five and on.

On a consolidated adjusted EBITDA showed a slight decline of 2% in Q4, but our full year adjusted EBITDA was up two percentage.

Free cash flow for the quarter was up more than 60% while for the full year free cash flow total $1 for three 5 billion and impressive oppressive impressive accomplishment.

Making any sacrifices to our capital expenditures.

I'm pleased to say that we achieved the revised expectations of each day and our Q2 2020 release, which was made at a time when there was a significant debt.

On where the economy was going.

Our consolidated targets announced today reflect the confidence we have on our business. These targets are underscored by the consistent strategy and superior execution.

We will continue to drive economically accretive loading, which will support positive financial outcomes and sustainable cash flow as.

As well, we're excited about the growth profiles of our unique asset mix and product offerings.

With the potential for heightened wireless consumer activity in 2020 line. We currently estimate an increased cash requirement of approximately $200 million related to device activations and upgrades.

As we estimated there were deferrals during the pandemic.

And this represents the cash outflow on free cash flow definition for.

The impact of that working capital.

As previously announced our 2021 capital expenditures are expected to remain within line of 2020.

With regards to our leverage we remain committed to investment grade credit ratings and.

And we are confident.

And consistent on our track record with them.

On our growth strategy, including participating in upcoming spectrum auctions, and we will continue to produce strong free cash flow.

Importantly, we will continue to work towards Delevering over time, primarily through EBITDA growth along with the proceeds from the IPO of <unk>.

<unk> International and in the near term continued free cash flow growth.

Before we move to the Q&A period at quantum providing numbers.

On our reporting changes that are coming on later in the year.

Okay.

I've spoken about this in the past and we are transitioning to new reporting segmentation for them.

In line with how we manage our business and how our business is evolving.

One segment will represent Telus International and other segment will capture the rest of pellets.

In the upcoming weeks and subsequent to Ti reporting its financial results for the year, we will provide revised iron supplement to demonstrate how we will how this will look including for the past eight quarters of historical information to help the transition.

This disclosure will also help with any definition differences between Telus and Telus international and the treatment of intercompany balances.

That let me turn it back to Robert to begin the Q&A.

Thank you Doug.

Hi can you proceed with the question periods. Please.

Of course first question comes from Arab Gulf for two years from Canaccord Genuity. Please go ahead.

Thanks for taking my questions one foot tower and one for Doug. Please so for for Darren obviously with the.

The growth that we're seeing in Ti T H and the acquisitions you've made on the AD tech side that portion that lets call. It the high growth portion of the business.

<unk> is developed to a meaningful part of revenue and EBITDA tracking towards low to mid teens, depending on how you estimated and one can argue.

Tracking towards 20% on a value basis, given what the market values for these assets.

Is there as we kind of look at Telus breaking away from the rest of the debt peers on that front.

Any medium to long term targets that you have in mind for.

The combination of these two components in terms of debt mix within the overall.

<unk> consolidated numbers, because obviously that has implications for the Stockton valuations down the line and then if I may just ask for the question from Doug straight away as well.

Obviously with the reporting changes Doug that you were talking about.

It gets a little bit difficult to discern profitability around the wireline as well as set a free cash flow generation on legacy wireline now that we have a sense of what <unk>.

But there's obviously a lot of moving pieces with AG Tech and some of the other items you talked about how can we get a sense as to.

How telus is achieving set of some of the wireline margin improvements that.

For the company has satisfied itself over the last over the last couple of years.

Thank you.

Okay. Thanks for the question.

To be explicit about it in terms of are there medium to longer term targets that I have for our Telus health business, our agriculture business and our security business.

Yes, there are quite explicitly actually.

Secondly.

Those targets are clearly not something I'm going to disclose within.

This form they are competitively sensitive.

But they are specific.

And they are ambitious.

I think it's also perhaps may be helpful to.

To the street.

That you can draw inference from what's happened with Telus International.

With the milestone culmination of the IPO and then what we're going to do prospectively to support significant future growth leveraging the transaction currency that we've just established whilst there are some differences between Ti and health and AG and security.

There is a tremendous number of similarities between the two on I think you can draw inference from what's transpired at Ti in terms of what it portends for our emerging growth businesses prospectively.

To give you some detail.

Behind it as it relates to health agriculture and security.

Mike.

Medium to longer term goals are all about profitable scale.

So it's value creation.

Entered around profitable scale to build tremendous assets of consequence within those businesses.

And that's what we're setting out to do with the very specific game plan in that regard. The other thing that is I think more and more clear to people is the synergistic nature of Telus Corporations' focus on technology and data centric.

Digital strategies that are getting imparted to our emerging growth assets on the health the AG and the security front, it's all about our digital progression.

And then lastly.

On the form that bringing these particular emerging growth businesses to fruition into the value centric assets of consequence that I've just articulated it gives us tremendous optionality.

And not just in the future book currently in terms of how we can leverage those assets. They are their growth profiles. Their makeup in servitude to the growth ambitions that we have for them along the way be it organic via third party partnerships or acquisitions.

Acquisitions to create the right composition of capabilities on a global basis, that's going to support the growth profile that we would all like to see.

So that's that's the mentality here on the only thing I would add to close is that we will be giving the street, increasing insights into our health and AG businesses and security as well.

As the 2021 year unfolds.

And beyond that into 2022, and we will start with an examination of our health business and its parameters in greater detail in the month of May and then we'll follow up on the AG front and security front thereafter, but to have that optionality that differentiated optionality that so.

It's synergistic with our technology and data strategy is key.

Doug I'll, let you finish up.

Thank you Darrin.

We will be continuing to show.

I would call it very relevant in key metrics.

Analysts and shareholders alike will be able to do a proper and effective assessment of the value proposition that telus is generating across our multiple product set.

Then on.

The.

Reporting stream for for telecom for a better term at the moment.

Would include still.

<unk> loading and key metrics on which to <unk> point. We'll also include net.

Metrics on on healthcare and AG Tech over time.

We could be including revenue on gross margin for certain of those products as well.

And that would be very direct to to the product offerings on which we're delivering and so as we roll that out you'll be getting more and consistent approach.

For for those that are reporting strange with the convergence of broadband in and when you think through how we deliver our services. There is a point where a lot of the cost structure that you have below those products that some of those product deliveries become allocations.

And as we go through and deliver the best broadband service to Canadians irrespective of debt the wireless and wire on wireline old categorization.

Debt, we're going to deliver it and we're going to have the best customer service in the expense.

<unk> networks either way.

So we will then just show that consolidated telecom.

<unk> for our conclusion.

But the Kpis will give you what you need to be able to do a formal assessment of the value drivers.

And what the delineation on the Capex front on fiber <unk> and digital means specifically to our emerging businesses on health.

In security.

Yes.

Thank you that's helpful I'll pass the line.

And that's already in place.

Of course next we have a question from drew Mcreynolds from RBC. Please go ahead.

Yeah. Thanks, Thanks, very much just two for me first on.

The mobile connected devices.

Again disclosing your kind of closing in on about $2 million of them, obviously, another strong quarter.

I guess Darren starting off with you can you maybe give a little more granularity as to how the loading mix has evolved the basin devices by type has evolved are you able to help us out on any service revenue impacts.

And then second question on the agreement with Google.

<unk>.

Really kind of reads very interesting still trying to.

First the magnitude of this so could you flush it out a little bit more in terms of specifically where it is unique relative to your Canadian peers are or maybe even north American peers. Thank you.

Jim why don't you take the first part.

And then Tony UN Zeno can finish off with some color on Google and on Mop up thereafter.

Sounds good so.

And the connected devices portfolio.

We're seeing.

More of a mix towards Iot type connections.

Correct.

This quarter, our tablet net loading declined slightly.

So on the Iot front.

It's everything from transportation to enabling home security.

So a wide variety of Iot applications.

The installation of modems smart hubs.

Specialized devices.

This category.

Is growing and it's going to become more and more important for.

<unk> rolls out.

We will start to see even more applications happening with low latency and.

And also this category is going to really help accelerate the investments, we're making at NASDAQ and in health.

In terms of service revenue.

I don't want to give an exact number but suffice to say these are lower arps, who connections, but very high margin because you don't have.

Any device subsidy.

And.

And very little cost to support them. So it's very accretive from a margin perspective, and as it's growing it's becoming more material on <unk>.

Tony.

Thanks, Darren and hydro.

Yes, So let me tell you a little bit about the Google relationship has its evolving.

Over the latter half of last year Dougal reached out.

Tell us would be interested in participating in that Google's digital transformation partnership program.

And we set up to join executive teams through Q4 to do some due diligence on what this would look like can we followed a structured framework.

They conduct about maybe 12 of these partnerships annually with global.

And players will have on alignment and cold share in aspirations to transform segments of an industry, our industry can deliver beneficial consumer or customer outcomes.

And drive some social good.

So the two executive leadership teams were working through Q4 to construct a framework that would create a number of swim lanes of activity, where we would co create.

And capabilities would transform one of our telecom.

Business as well as.

Putting more fuel and so far on on the transformation, we're already well under way on and as you can see by our results throughout 2020, despite massive channel disruption digital capabilities allowed us to drive.

Peer peer best performance on the show customer Logan.

It also allows us to focus on some of the exciting new growth areas that Darren on articulated well, particularly around the AD tech from the health space, where.

Google's ability to drive.

Digital transformation.

Leveraging the data analytics capabilities, along with our combination of small assets can bring together some really transformative.

Outcomes that will propel the global from.

Capabilities that we want to deliver particularly and I kept coming on.

So we think that's it.

It's an exciting opportunity.

Co committed for a 10 year.

Arrangement, where we will invest from standard fleet, both parties, but we expect to see a four to 10 times investment return.

We pay all of those areas of focus into driving go to market initiatives that will deliver value for both organizations Zane on maybe you'd like to talk on some of the specific tell us related capabilities Eagle postpone.

Thanks, So much Tony So I think we are all incredibly excited about the opportunity to co develop and transform our core businesses and our emerging businesses through leveraging the assets that Google can bring to the table. If you look at our home solutions environment and the way in which we are.

Driving digital life experiences leveraging our superior pure fiber and mobile network. We're working to think about all of the solutions a customer might need to enhance their efficiency and effectiveness in the home and out of the home and if you look at the transformation that Covid history.

And in that context, there are numerous opportunities to drive improvements across different services. When you look at health care or security and automation or the evolution of Iot. We've demonstrated that we are already an aggregator of choice and we have platforms to deliver that such as.

And our unique and differentiated TV environment and now we want to take that to the next level and think about a more data driven personalization and digitization of all of our activities. So that we can drive better experiences for our customers. So we're really excited about that co development partnership and we are.

Excited about the fact that the core capabilities, Tony referenced are going to unleash some cost efficiency and other.

Creative economics, so that we can invest in that innovation.

Yes.

And this builds on the long term significant strategic partnership that's been existing in deeply fruitful for both organizations between Telus International and Google on and that really has provided the foundation for US taking the next step in this relationship at the Telus Corp level. Thank.

Thank you.

Thanks for your question.

Alright. Thanks.

Next question comes from Vince Valentini from TD Securities. Please go ahead.

Yes, thanks very much.

I would like to try to clarify on clean up a couple of things have already been discussed and then a big picture question for for Darren.

Just on the last one on Google can you just clarify.

Is there anything here that pigeonhole, you into having to deal with Google exclusively because I think one of your competitors on some kind of partnership with AWS and other ones announced something with Azure does this mean, everybody sort of picks there for hyperscale or partner and moves forward or do you still have flexibility to deal with anybody you want when it comes to the new world of <unk>.

Whatever other services. So that's one clarification another Doug I'm not sure if you're.

You are circling around a little bit, but can you be specific I mean will we see Telus health as one of the line items that will we will get revenue for on a consistent basis starting when.

When you move to the new rewarding assuming that in Q1 or is it still going to be somewhat anecdotal on Telus health disclosure as high as it's been in the past.

And then the bigger picture question for you Darren.

Phenomenal.

I think you've achieved faster than I expected and maybe faster than you expected to have Telus international market cap would be higher than what the original Telus Specie gel merged company was way back when you. When you took over so kudos to you on that I will remind you I think you said at the time that Thats one of your objectives to achieve before you would even think about.

Moving on.

Who would succeed you to to run this fine company. So I'm wondering if you can close that circle for US does this mean, you're getting close to thinking about passing the range or do you still have a lot of several years of life left in U.

That'd be great to get your perspective thanks.

Thanks for that description Vince of several years of life.

Okay.

Yeah.

<unk>.

So in terms of the question with Google No. It is not exclusive no we're not pigeonholed.

By that.

No.

For our ecosystem considerations.

<unk> are important for us in terms of having the flexibility that we need but.

But I would say the opportunity with Google is enormous and we've got a great track record to date to build upon with Ti that's been tremendously beneficial for both Telus International.

And Google.

And we're excited by the value that we can create we've put out a target of $800 million of value creation through this partnership and we think the strategic fit on the digital front between both organizations is tremendously compelling and synergistic.

And.

Serendipitous in a way if you look at the focus on health, there's a commonality focus on AG. There's a commonality. If you look at the focus on the automated home and the digital life within the home, there's a terrific commonality.

As it relates to what Telus is ingesting internally at the network on the level, we're already going through this digital transformation. So we're really vending into the momentum in that regard and so we think theres a huge amount of value to be created here and we like the symmetry in the relationship.

The reciprocity on a on a back and forth basis. This is not something that's asymmetric when you look at what Google on Ti have been doing all along so.

That's that.

I'll, let you.

Get Doug to answer the next question before I think up a good for.

Final answer to your third question.

So we are Darin and I are finalizing the kpis that we will.

We will put through on and show on Q1.

Revenue is on the page as a discussion of.

A relevant kpis that we would consider showing per house, but it's still to be finalized. In addition to obviously other kpis that are very relevant such as.

On.

Yeah.

Any of the virtual care type.

<unk> that would be.

Needed to SaaS success over the long run. So we will we will come back more formalized when darin and I have locked on that debt.

Finally, as part of our discussion on relative metrics that we think.

Analysts and shareholders would want to know to be able to do a proper assessment of our organization.

And especially the.

The health and AG areas, which are.

Different than our typical.

Typical offerings.

My answer is yes.

Guarantees that Doug disclose it.

Okay.

Yeah.

And then to answer your question specifically Vince.

To be fair when I gave that particular view on what I wanted to get done.

There were five parameters.

That I set out.

Ti was was one of them, but there are another for that I'd like to get done while I can still add value.

And unfortunate because the quality of this leadership team is really second to none so.

I don't want to clog, the arteries, but Mike.

My commitment at Telus right now is for a.

On a multi year longer term.

So to be very specific.

About it.

Secondly.

In terms of what I'd like to get accomplished which I think is exciting for investors. So not so much what's relevant to me, but what's relevant to the investment community.

I would like to do with health Aegean security some semblance of what we've done with Ti.

I won't be satisfied until we realize that particular outcome.

Secondly.

I want to work and support Jeff and his talented team for the other shoe to fall on Ti.

This is a as I said in my remarks, a milestone not an end game on the Ti growth strategy and I think there is huge potential still to be realized and we want to lead the world and that's always been our orientation and I really do believe the best is yet to come as it relates to Ti.

Both in value creation, and I would like to try and help out with that.

The other thing Thats critical for me as.

I would really like to complete the fiber and the <unk> journey.

And that would let me rest easy because with that broadband infrastructure in place that are near ubiquitous level.

Really does institutionalize, our competitive advantage at Telus and set us up for all the value that we can create from new services and all the cost that we can take out of our business because of the efficiencies and the economies of scope of fiber and <unk> technology, and so getting that done won't let me.

Rest easy.

The second the last thing is customer service, we're not done on the customer service excellence front.

I think it's great to have the leadership.

Want to extend that leadership position and Theres two attributes to that one is what we can do with our culture and the second is what we can do with everything from our digital capability set the process engineering and automation and I'd like to put a tick in that in that box.

And then the last thing is and maybe it's a little bit of a Canadian on me, but wouldn't it be great. If we could get to the point, where the perception marries up with the reality that we are the world leader when it comes to social capitalism.

There is no organization that puts the words to work like we do.

In terms of to do well on business, we need to make a difference and do good in our communities.

And that's what we do day in and day out and to amplify that on a global level and drive that perception homes. So it marries up with the reality is the final thing I would like to do so.

That's what I'm up to and hopefully that's very relevant to investors in terms of value creation.

Got you. Thank you I'll pass it back to <unk>.

Yeah.

Alright.

So next we have a question from.

David Mcfadden from.

Core Mark Securities. Please go ahead.

Hi, a couple of questions from me I was wondering just.

Just on your guidance if you could.

Give us the breakdown between tell us on Telus International So when you look at say the revenue growth rate to 10% would say, 6% is from Ti on the balance from tell us.

Those kind of parameters and secondly, just on the fiber build.

So you finished 2020 at 81% on your footprint.

The target for the end, let's say 'twenty, one and then I don't know if you can provide us.

I was just wondering what percentage of your broadband footprint.

That is not covered by fiber overlaps with what was just wondering on that for.

Okay Doug.

Given the sensitive nature of.

Right now I'll, let you.

Handle the first part of that question and then the second part of the question.

Tony Zeno <unk> as it relates to our fiber build and what it means to our go to market capability I'll ask you to address that and maybe with that expansiveness of the fiber build perhaps why you could comment on what it's going to mean to our health business to have that broadband underpinning.

And what it means to our AG business as well.

So on the first one ti is going to be releasing its final results.

In the next 10 days give or take.

And so I will not be breaking out ti or tell us from a guidance perspective at this stage in.

When when Ti.

Ready to put out its own guidance it will do that and the split will be more evident.

The only thing is we break out.

On the segmentation discussions when do you need to remind you.

That when Ti disclose it and it will include revenue from tell us.

Telus is disclosures do not have that because of the segmentation elimination that will happen on a consolidated basis. So as we do the.

The multiple disclosures, we will definitely help get the.

Elimination entries right along the way.

And we'll look forward to win.

He is ready to give it.

Guidance back to the street for that purpose.

Thanks, Doug Tony Dan on Francois.

Thanks Darren.

David when we set out on the on the pure fiber build we assess the market opportunity relevant too.

Back then in 2013 on broadband infrastructure wise that existed and we set a scope out that we would get to circa 80, 990% coverage.

Our wireline footprint.

As we've gone through the last seven years on the build has been extremely.

Successful for us in driving market share leadership in HSA.

Rob had catch up on TV, where we were we were but far and away.

For a party to the market.

We vote.

We've expanded the view of where as addressable as we develop top techniques. We've also encompassed where we can leverage.

Well managed federal and provincial funding schemes to drive economically viable extension builds to rule on remote communities. So there is a kind of a bit of a moving target as to what the end state looks like supplies to say, where there is opportunity to build over a legacy brownfield.

Copper infrastructure, we have plans to do that where it makes sense.

Everywhere, we've gone we've seen there that makes a significant transformation.

Our market share position and drives an unassailable position relative to other networks for him.

But for the premise.

And by my side for Libra somewhere, but then on fiber to the premise on that customers.

Customers clearly recognizes the value book, So we will continue to invest where it makes sense and we have a plan to.

To rollout those for those remaining footprint areas as we go forward over this year and beyond.

This expense if investment is behind us and now it's really targeted focus build where we see great opportunity Zeno on close to you.

Thanks, Tony maybe two top ups I'll add a little bit of color, where we compete and a little bit of color on where we don't actually so we certainly know that quarter over quarter or more new and existing customers are choosing the superiority of pure fiber and I think thats indicative in our results.

We're also seeing that of course, they are deciding to take higher speed tiers and more integrated video packages as well as our distinctive offers around security and automation.

Notably consumer health and cyber security as well and if those latter III portfolios security and automation online security and consumer health during the pandemic during the pandemic not only are these services unique and differentiated to the competition, but theyre offered nationally and Theyre also offered in.

Areas, where we don't compete head to head and they are the fastest so we are seeing the fastest customer growth in the country across these three portfolio. So our pure fiber network investments have continued to deliver great results, we have double digit <unk> growth for new customers that we added in Q4 relative to last year.

We have industry, leading churn and product intensity and we also have a lower cost to serve and a pocket digitization. So a triple play customer deliveries about five times for lifetime revenue of a single play customer and the lifetime value of a fiber customer has is up 80% year over year.

That's where we compete head to head. We also have a very strong and significant wireless high speed offering and we continue to offer the same capabilities in terms of product intensity and bundling and realize the same capabilities from a perspective of our superior customer service and our Digitization.

So we see a tremendous <unk>.

<unk> growth opportunity and accretive economics on our wireline segment across both these portfolios and we also see significant expansion in <unk> and are excited about the speed and adoption of our expanding services in the security and automation consumer health and the and the cyber security portfolio.

Zane on just David one last top up.

As we expand our fiber footprint.

So they're very synergistic to our pledge ambitions because every will replace from fly but for the premise.

Providing flavors available for a small cell on flight GE coverage.

And I think this gives us a critical competitive advantage in the areas, we built relative to our competition.

Yeah on Tony that's probably certainly true.

Health and agriculture.

Think about where we are pushing in the future and working hard on right now in terms of digitizing the patient provider experience.

Introducing new layers of bio in imaging and analytics or taking virtual care from what it is today more of a consultation primary care mental health care or Allied care perspective.

<unk> two <unk>.

New use cases in the future, where you actually see medical interventions.

Being done over either your fiber connectivity, whereas Tony rightly said.

And in more rural aspects over five G connectivity.

On the future similarly in agriculture.

We're seeing the.

Advent of soil sampling whether monitoring.

Capabilities that debt.

Cannot be.

Done out there.

You know utmost point without connectivity, but even more on the futures you see things like.

Precision agriculture.

Owing us to be able to assess the quality of what's going on at the plant level.

Have the farm income do you do better integration in terms of chemical spread and they're more reduced fashion agenda on to the plant level. So both in health and you can't do this without them.

And underlying.

First grade telecommunications infrastructure, and therefore, there are great synergies with the pushes we're making on health and hygiene.

Your fiber question here.

As Tony noted down to the final G connectivity points.

Yes.

Okay, alright, well thanks, so much.

Next question please.

Oh, Yes of course, our next question comes from Jeff Fan from Scotia Bank. Please go ahead.

Thanks, Good afternoon.

I just wanted to go back to Karen's comment about building.

<unk> scale.

And maybe to get you to expand a little bit on what your vision of that May look like.

Or are we talking about building.

A simple telecom platform that sit on top of it we talking about like a software platform.

Aggregate various app that sit on Paul.

Absolutely Doug.

Fans across agriculture health.

Maybe even the cross cuts.

Customer segments.

And then maybe tie back to the reporting and disclosure that Doug mentioned.

Are we talking about when you say telecom segment are we talking about the combination of wireless and wireline into one segment now and you're going to report.

On consumer or Youre, not going to get down to the wireline wireless EBITDA line I'm, just wondering in that new world.

One other thing how things will change.

From from a reporting perspective for telecom.

Okay.

To be very explicit on the stratification and.

Francois I'll ask you to top up with some specificity.

On the specific empirical parameters on health and because I think it would be good for the street to see the magnitude of what we've already accomplished.

But Jeff.

As a prerequisite to that we're talking about a digital platform.

With yes, a software overlay on top of it as it relates to building service ecosystems on both health and AG underpinned by broadband technology.

So thats the stratification of what we are creating here on.

First of all why don't you just quickly provide some of the empirical parameters of the ecosystems that we built on that digital platform and where we're taking our software capability set with our application ecosystems again, leveraging our broadband technology and in.

<unk>, our data analytics related to that and the dynamic insights that we can glean.

Thanks Darren.

Provide a quick overview. So as you all know we've been investing in health care as an example for the past decade decade or more more than $3 2 billion across the end to on health care ecosystem.

And we've.

Observing an increasing emphasis on chronic disease management, our focus on consumers and employers optimizing wellness and the potential benefits on our network and innovative technology can deliver rebuilt.

Rebuilt.

On an extensive digitized health care environment in Canada building, the backbone to enable more seamless and efficient flow of information across the healthcare spectrum.

Let me give you a few examples in <unk> are actually the reach that we've built.

On our technology solutions actually handle health benefits management for over 12 million knives in Canada over approximately a third of Canadians.

We've developed primary care solutions like electronic medical records or practice management solutions.

That that's.

That service to day 28000 physicians using as our solutions across the country.

We have developed through the pandemic on before the pandemic.

Virtual care capabilities that on.

Ive been seeing exponential growth over the last little while.

Whether it's our EMR solutions virtual visit solutions that I've seen hundreds of thousands of consultations in a very short timeframe on.

Our virtual care solutions are seeing now close to 1.7 or one 8 million subscribers.

Subscribers seeing a 500% growth.

Year over year from 22 2019 to 2020.

Similarly in agriculture.

But over a shorter period of time over the last 18 months, we've assembled a suite of assets through a number of acquisitions that is second to none now in the world in terms of pure play software technology that is targeting one of the biggest social challenges that for you have it in our lifetime, which is the access.

Two good quality food for all and that that issue is going to become ponting itself.

Global population continues to grow over the next.

Decades, and so on a very short time frame, we've assembled a team that is now servicing customers in 57 different countries.

And that has over 160 160 million acres under management, reflecting the incredible scale, we built over a short period of time powered by 1200 team members in 14 countries that are providing digital solutions to six out of the 10 food suppliers.

Top 10, food suppliers globally or nine of the top 10, agriculture customers globally and here, what we intend to do through our software capabilities is not just allowing farmers to be more efficient in producing better yield for their crops, but also being able to follow.

The safety and the quality of your food from the time, we put a seat in the soil to day.

The entire food value chain down to your place so that we can improve.

Yields reduce wastage.

And as I said at the beginning Hello, better food access for everyone across the globe.

Okay.

On your second one on segmentation.

Yes, but that would mean that telecom would be one EBITDA.

But they would still be relevant metrics, both on a key P&I perspective.

Revenue breakdown.

And where relevant.

For the high level Cogs breakdown.

To allow that top level.

Assessment, and I think what the as we've had more and more convergence of our wireline and wireless operations and we've been talking about this for years more and more of the comps become shared and I would use the analogy that when we changed our reporting on.

Subscribers to connected devices to mobile and changed.

Behavior in our organization focusing on what matters, most and I think you can see that in our results and this is another example of the focus points for putting on the organization to deliver and deliver strong results and make sure we maximize the value and reduce any of those shared costs for the proportion.

I think that'll allow us to continue to manage our business allocate capital effectively.

And continue to lead in the metrics that we've been.

Leading to to date and so we'll make sure that we do.

On strong and meaningful transition with our IR supplement so that there is no stumble along the way and you'll still be able to interpret and see the value of all of our operation.

Great. Thank you.

For one more question please.

Of course next question comes from Simon Flannery from Morgan Stanley. Please go ahead.

Great. Thank you very much thanks for putting me on.

A number of the U S broadband carriers have suggested that on broadband in 2021, we should think about more like 2019 being a reasonable comp rather than 2020, given some of the.

Impacts from Covid on the pull forward of demand would be great to get some thoughts about how you see it for Telus.

Tell us and then thanks for the update on <unk> good to see the coverage expanding any early learnings on cost performance on usage patterns enterprise interest thoughts you could share with us.

Okay Simon.

As it relates to the comment on 2019, I think thats fairly accurate if you look at how we set our budget.

For 2021.

We did a normalization of the Covid impact.

In 2020, and we do inference from 2019 to do our target setting for 2021 of course, the caveat being that we still have the COVID-19 legacy and its restrictions impacting us. So I think it was.

<unk> move not to set a budget, where we're unduly benefiting from a 2021 over 2020 Delta just because of the Covid dilution in 2020. So we did a normalization exercise on 2020, we do inference from 2019 to make sure that we were setting stretching ambitious targets for 2020.

And then we moderated them according to our assumptions as to how long the legacy on the Covid front with lost and the implications associated with such but the other thing that we did is to.

To say, okay, we're getting better and better and better at dealing with Covid. So.

Our ability to manage Covid in March of 2021 should be a lot better than in March of 2020, because we've been recycling the tuition value in terms of what we've learned along the way and I talked a lot about that within my remarks on I've also talked about the way, we're leveraging our technology and our digital capabilities.

Abilities, and the way that we've been able to pivot our team.

To work on a more virtualized environment, so that we can deliver.

On the shareholder outcomes the customer outcomes that we think are appropriate and if you look at our year over year loading on either mobility or wireline in 2020 versus 2019.

Pretty strong story to say, the very least and we delivered very strong financial results to boot in that regard whether it's top line revenue, whether it's making it across the finish line into the black at the EBITDA level, which is quite a unique outcome or the fact that we squeaked over the line on the free cash.

Flow front as well related to our original 2020 guidance and so for Telus, We got the mentality that let's not use COVID-19 as an excuse let's use COVID-19 as a digital acceleration opportunity because that's where we're going with our business strategy and technology in the first place and boy isn't a gray.

We've got digital businesses like Ti Telus health and AG that can do that and then a smart team on the wireless on the wireline front.

Answer the challenges that they are phased in and innovate and invent new ways to deliver our solutions to customers that were better in 2020 than they were in 2019, and so I think that bodes well for the future on the <unk> front I think people should have been and we try if you go back and look at our comments I don't know how many times, we made the comment that <unk>.

On.

Non of sprint.

And one of the mistakes I think thats been made in various jurisdictions around the world.

Is setting premature.

On expedient and Super high expectations on what <unk> going to deliver and what you've seen in certain markets is a little bit of lunch bag, let down.

Because people not lived up in the near term to the expectations.

<unk> fantastic.

And it should have lofty expectations, but the timeline to realize those lofty ambitions and commercialize them and two services that are deeply meaningful first on the <unk> front.

Thereafter, more ubiquitous C on the consumer side of things is going to take time. These things will come to fruition when larger swaths of contiguous spectrum are made available as we go through mid band high band. So this is about.

Not just 2021, what we can do from a coverage footprint point of view.

But what can we develop in terms of profitable products over 'twenty two 'twenty three.

And 24 and that should be the way that we are positioning <unk> and educating the market accordingly.

For us we exited 2020 with about 30% coverage on the <unk> front that represents about 81 communities than we now have about 21 devices in terms of various models.

That are leveraging <unk> for handset level and you can expect us to continue that progression ardently over the course of the next three to four years.

And I think what's important.

Is it day Knowhow Telus operates so.

What's the what's the axiom for us as it relates to network performance and the axiom for US is that we're going to continue to lead on speed symmetry low latency coverage and reliability.

What open signal, our oak lower to Telus has said about us.

Retroactively over the last three to four years, you can expect them to be saying the same thing about us prospectively and the recipe for success.

Telus is less combined network leadership across all the parameters that I've just articulated with the best customer service in the world enabled by great value propositions, because <unk> will be all about peace of mind for US and then innovate in terms of our channel strategy, including digital.

That is the simplicity of the recipe and the other thing that <unk>.

People need to notice is that as we rollout five G don't forget to look at <unk>, because our LTE <unk> network is outperforming a lot of <unk> networks on a global basis. So we've got a one two punch and in that regard as we go through the transition to <unk> along the way.

That is particularly potent and then look at the way <unk> fit so beautifully with our automated home consumer digital life as first of all I was saying as it relates to health or <unk> or <unk>.

Dana was pointing out on the security front, it's going to be a lot about enterprise solutions for us when you think about mobile edge computing and what we could do with network slicing and private networks that will support.

On areas like manufacturing Fintech and the like we think we can take our security business and do great things on smart cities and smart buildings in terms of the commercialization of that again on the on the <unk> front.

When you're talking about scale I've spoken at length about scaling help in scaling AG in security, we want to scale, our Iot business and thats going to be deeply enabled by what we do on the <unk> front and then one of the things I don't hear people talking about on <unk> and fiber is cost reduction.

So the cost per gigabyte, driving that down driving that down driving that down on an absolute basis, and then combining that with economies of scope, so getting more and more and more and more services over our <unk> and fiber connectivity are synergistic <unk> and fiber connectivity to really take cost out.

Our business because of that can support a high.

<unk> or <unk>, it can support better multi product penetration if it can lower our churn if it can reduce failures or fewer truck rolls.

Along the way and if it can allow us to simplify our network and make it more of a digital automated self serve network that takes a lot of cost out of our business.

And even when you think about the synergistic complementary deployment of fiber and <unk> G. Just within our fiber footprint within the next two years, we're going to completely decommission copper and thats going to give us better simplicity batter homogeneity is we rip out our DSL infrastructure better energy.

<unk> outcomes in terms of less energy consumption, but a lot of goodness in terms of that network simplification, that's going to benefit the combination of fiber and <unk> and then lastly, we need to make sure that as we are generating voluminous data and how we construct those data higher fees and a meaningful data that we mine that data and <unk>.

<unk> value with our dynamic insights and make sure that we commercialize that component of our business.

Served whether it's the <unk> environment across all of the verticals that I, just talked about or interesting things that we can do with consumers on digital life.

So it's exciting but.

It's a modular program.

<unk>.

Starting with some nice speed steps steps forward in 2021 on availability of devices, but the.

The best is yet to come on that front as well and people need to be patient as the products get developed along the way.

Thanks, a lot.

Thank you Darren and thank you everyone for taking the time to join US today, Please feel free to reach out to the IR team with any follow up questions you may have and take care everyone.

Ladies and gentlemen, this concludes that tell US 2020 Q4 earnings conference call. Thank you for your participation and have a nice day.

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Good morning, ladies and gentlemen, welcome to the tell US 2020, Q4 earnings conference call I would like to introduce your speaker Mr. Robert Mitchell. Please go ahead.

Hello, everyone. Thank you for joining us today, our fourth quarter 2020 results news release, MD&A and financial statements and detailed supplemental investor information are posted on our website. This morning at Telus Dot Com slash investors.

On our call today, we will have remarks by Darren Entwistle, President and CEO, Jeff <unk> Executive Vice President and President and CEO of Telus International and Doug French Executive Vice President and CFO.

For Q&A portion of our call we will be joined by Zane on <unk> President home solutions, Jim Senko, President mobility solutions on slide <unk>.

Group President share of Telus Health, Telus, Quebec, and Tony Garen, EVP, and Chief customer Officer, Darin will take the lead in the questions session and allocate the questions out to either sneakers as appropriate.

Thanks, Ramirez Hello, everyone for 2020, Telus once again achieved strong operational and financial results in both our wireline and wireless businesses.

This is a trend the Telus team has demonstrated over the longer term and in 2020 realized against the backdrop of an unprecedented operating environment our.

Our performance in the fourth quarter and for the full year was characterized by our hallmark combination of robust high quality and profitable customer growth alongside strong financial results.

The quarter concluded another year of industry, leading customer net additions of 777000, including an all time record for annual wireline subscriber growth of 240000.

Thanks for the decisive action and active cash management, our full year cash flow of one dot for three 5 billion was within the one dot for the $1 $7 billion range that we initially targeted back in February of 2020.

This was achieved alongside five 2% revenue growth and zero debt, 2% EBITDA growth for the full year.

Notably Telus was the only telecom provider amongst our national peers to report positive EBITDA growth for the year.

Moreover, excluding the effects of COVID-19, we achieved EBITDA growth of 6% in 2020.

Our industry, leading subscriber growth was driven by our team's passion for delivering outstanding customer experiences day in and day out this.

This in turn contributed to strong and enhance client loyalty across all of our key product lines, including postpaid mobile phone Internet and TV churn all achieving a below 1% churn rate in the fourth quarter and for the year.

This performance was backed by our highly engaged team world, leading wireless and fiber broadband networks strong digital capabilities and our superior service offerings.

Let's take a look now at our wireless business.

Fourth quarter network revenue decreased by 1% as our consistent focus on strong and profitable growth was offset by reduced roaming revenue.

As a result wireless EBITDA was down one 1%, partially mitigated by an intense focus on cost management by the team.

Doug is going to provide more detail on these financials in just a moment.

For the fourth quarter, our team achieved 87000 mobile phone net additions.

17000 over last year and.

In terms of connected devices, we realized strong net additions of 88000 up 28000 on a year over year basis, reflecting increased demand for Iot solutions.

Overall wireless net additions inclusive of mobile phones and connected devices were 175000 in the quarter, which was up 45000 over this time last year.

Importantly, our team delivered another quarter of best in class loyalty results.

Blended mobile phone churn was 109% representing an 11 basis point improvement over the last year.

Underlying this result, postpaid churn of $0, 93% was better by three basis points compared to a year ago.

Indeed, 2020 represented our seventh consecutive year of industry, leading postpaid wireless churn below 1%.

As a key factor in this achievement the efficacy of our ongoing investments in our globally, leading broadband networks continued to be evidenced by major independent reports again in 2020.

By way of example, Telus as wireless network was recognized by UK based open signal as the fastest in the world and by U S phase II as the fastest and most expensive on a national basis.

On the awards have now been received by Telus for four consecutive years.

In addition for the second year in a row Canadian base to Tele placed Telus first in respect of quality latency and download throughput for our wireless network on a national basis building.

Building on these accolades Telus was recently named Canada's most respected mobile service provider and a survey of Canadians from coast to coast conducted by UK based marrow blue.

To close on our wireless results Abu <unk> declined by approximately three 7% and three 4% respectively in the quarter.

This of course reflects industry wide pressure on roaming associated with pandemic related restrictions.

And reduce travel.

Partially mitigating this we continued to thoughtfully migrate our base to our endless data plans with more than 60% of rate plan changes in the quarter, representing step ups or remaining flat whilst holding the line on our premium brand <unk>.

Our network investments across <unk> and fiber.

Turning now to our wireline results, where Telus once again delivered a very strong quarter for.

Fourth quarter wireline revenues increased by 14% and EBITDA increased by one 5%.

From our TV offering.

It also includes strong growth in home and business Smart technology inclusive of security and.

It includes increased revenues from the hybrid scaling of our virtual health care solutions and.

And finally it includes resilient performance at Telus International Thanks to our team and it is inclusive of net organic growth as well as the successful comp.

Confidence call Center acquisition.

Doug is going to provide more details on our wireline financial performance and the temporary COVID-19 related impact that we've had to navigate but we've navigated them successfully.

Looking at our robust customer expansion in wireline.

Our company and our team achieved fourth quarter Internet net additions of 44000. This represents an increase of 16000 additions on a year over year basis.

This was buttressed by a churn rate below 1%, which alongside a solid double digit percentage increase in monthly recurring revenue for new customer additions.

<unk> to bode well for future lifetime economics for our growing Internet business.

Also supported by churn being below 1%, we realized healthy TV net additions of 20000, which represents a 5000 increase over last year.

Notably residential voice line losses came in at 9000 in Q4, representing yet another quarter below 10003 thousand improvement again over last year.

<unk> results.

In summary, total wireline our June net additions of 78000 were up 32000 year over year. This represents our best fourth quarter on wireline loading on record.

In that regard at the end of 2020 are pure fiber coverage stood at 81% of our high speed broadband footprint up from 70% at the end of 2019.

This is a positive progression for five G as well given the potent synergies between the two technologies that I've talked about for so very long.

Like our wireless network or fiber network continues to receive important recognition from independent authorities.

At a time when the speed.

Quality and Expansiveness of our networks has become more important than ever for Canadians. These recognitions, both for our wireless and wireline broadband networks are particularly resonant.

I am deeply grateful to the entire Telus team for the exceptional grid they demonstrated during exceedingly challenging year and the way that their talent and commitment came to the forefront.

Indeed at the outset of the pandemic many customer facing team members were redeployed to support our clients virtually where pivoted to provide assistance remotely or through virtual installations and repairs.

As a result, we avoided team member departures and continued to deliver outstanding customer experiences during the most challenging of times.

This was evidenced by our industry, leading customer loyalty rates and by earning an industry leading score of 75% in respect of consumers likelihood to recommend telus as products recommend our services and recommend our people and when we talk about <unk>.

Free leading on the customer service excellence front it goes beyond national to global.

And financial performance delivered by our team.

This includes industry, leading 2021 revenue and EBITDA growth of up to 10, and 8% respectively alongside free cash flow of approximately one $5 billion that we're targeting in 2021.

Whether it's revenue or EBITDA or cash flow clearly the financial parameters for Telus are compelling capella.

Compelling today retrospectively and prospectively.

This was undoubtedly a monumental achievement for our team.

Notably, establishing an important growth currency for Ti's continued global expansion with a market capitalization of more than $10 billion.

It was indeed, an if.

Historical accomplishment, representing the largest technology IPO in <unk> history, and one of the largest ipos in the history of Canadian capital markets with total aggregate proceeds of almost $1 5 billion.

Proudly. This also represented the fulfillment of an important aspirational goal for me personally.

To achieve an enterprise value for Ti exceeding the $8 billion market cap would tell us two decades ago. When we first embarked on our national growth strategy really is the fulfillment of an ambition.

And when the project debt.

Outgrow the origins of the parent there's something meaningful and poetic about it congratulations for the team in that regard.

The significant value creation reflect the steadfast focus of both Telus and the Ti teams and emulating the parameters of Telus is success.

Jeff will talk more about Ti in just a minute.

GI success story reinforces the efficacy of our strategy of organic growth.

<unk> executed complemented by selective and thoughtful acquisitions as we look to build scale in exciting emerging growth businesses like Telus health, Telus security and tell us agriculture evolving them into tremendous assets of consequence in the future.

Our integrated and broad portfolio of data technology solutions within these growth verticals combined with our strong financial growth profile further enhances the highly differentiated value that we're creating for our investors.

This announcement came to fruition in large part due to the strong partnership Telus International and Google have enjoyed over the past decade.

Notably our international team has provided complex next generation digital.

And customer experience solutions to Google while they in turn have helped to drive Ti digital evolution.

Telus This strategic partnership with Google will propel our digital leadership, whilst amplifying our customers first priority redefining how service is delivered in Canada and globally.

In a year like no other as we manage through the ongoing global pandemic. The Telus team continued to do good in the communities, where we live work and serve as citizens, we expanded our Telus health for good program with the launch of seven new mobile health clinics in 2020.

And on an additional two clinics in January of 2021, bringing our total debt 13 mobile clinics nationwide.

Throughout 2020 on mobile clinic supported 28000 patient visits, including administering 12700, COVID-19 assessment in tact.

Furthermore, our Telus family contributed $85 million and perhaps more importantly from our Hearts, one dot two 5 million hours of volunteerism charitable and community organizations in 2020.

Our team's leadership in social capitalism was once again recognized on a global basis with Telus ranking 50 for on the corporate Knights 2021 Global 100, most sustainable corporations index for the ninth time, making tell us the highest ranking telco or cable co in <unk>.

America.

These are outstanding achievements and I remain exceedingly proud of and.

And grateful for the entire Telus team.

On that positive note, Jeff I'll hand, the call over to you to talk more about the exciting progress that Ti and on how really the future you have.

Thanks, very much Darren and Hello, everyone.

Is indeed, a very exciting time for the entire Telus International team with our successful IPO last week on both the New York and Toronto stock exchanges.

February 3rd Mark on a historic milestone in our company's decade, and a half long journey from a single delivery location in the Philippines to a globally scaled digital customer experience leader operating in over 20 countries around the world.

The success of our IPO was a validation of our long term digital strategy, our focus on customer service excellence and our internationally recognized social purpose impact.

<unk> Ti as Darren just mentioned the largest tech IPO in <unk> history, My heartfelt gratitude goes out to our 50000 highly engaged team members around the world our more than 600 value clients and of course to tell us and baring private equity Asia for their guidance and.

Unwavering support.

As a leading innovator the designed build and delivers nextgen solutions for global and disruptive brands Telus International has a unique approach to combining digital transformation in CX capabilities across the full customer experience value chain.

Our highly engaged global team continued to execute very well in Q4, our ability to leverage our carrier grade infrastructure to help bring our differentiated culture to life.

Virtual environment has been a source of our strength.

As a result, Telus international has proven to not only be resilient through the prolonged pandemic, but we've also demonstrated our ability to continue growing our business.

In connection with our IPO Ti disclosed preliminary results for 2020, which highlighted our performance.

With estimated 2020 revenues of approximately $1 6 billion U S dollars representing year over year growth of circa 15% and adjusted EBITDA margin of circa 24%.

<unk> is expected to report strong year end results for 2020, when compared against 2019 on a pro forma basis, including our CCC acquisition.

Noting here. These impressive results do not include our recent Lionbridge AI acquisition, a leading global data annotation business fuelling AI algorithms with the world's largest technology companies. This acquisition closed on December 31, and integration is well underway and.

In this regard I'd also like to take a moment to welcome our newest team members into the Ti family.

So excited about our combined capabilities, including the natural adjacencies that exist within our trust and safety practice in particular.

Indeed, we are continuing to define a new category at the intersection of digital.

And digital customer experience and we expect to amplify and accelerate our go to market strategy to demonstrable scale proven digital capabilities in a differentiated culture. Let me now turn the call over to Doug for a detailed update on Telus is Q4 financial results Doug over to you.

Thank you, Jeff and Hello, everyone.

Consistent with our prior quarterly results, we continue to deliver on high quality subscriber growth.

Mobile phone net additions.

On the 25% over last year.

More importantly, the mix of our customer base continues to shift towards our premium Telus postpaid brand and more and more customers are choosing peace of mind unlimited data plans.

We continue to ensuring we get the most out of our cash Coa and CLR spend <unk>.

<unk>, reducing traditionally non recoverable subsidy.

Painting, a reasonable economic payback within the customer's contract term.

Consistent and thoughtful approach has and will continue to benefit our financial position as evidenced by our leading financials, including strong network revenue trends.

Additionally, the quality of our loading is enhanced by the bundling of our mobility and home offerings contributing to high customer loyalty.

Network revenue declined 1%, including the impact of $63 million related to lower roaming revenue.

Excluding this impact our network revenue would have grown by more than 3% reinforcing the quality of our loading profile.

More importantly, the quality of our subscriber base.

Our current assumption is that roaming recovery will begin slowly in the second half for 2021.

However, the robbing recovery would be largely dependent on the pace of the global vaccine rolling and the easing of travel restrictions, notably between Canada and the U S. And we expect this will not be on a full recovery until 2022 at the earliest.

Mobile phone ARPA declined three 4% representing sequential improvements from 5% decline in Q3, and a $5 eight declined in Q2. The trend is in line with our high quality loading and customer mix over the past 12 to 24 months.

When excluding the roaming impact or.

We would have grown by approximately 6%.

Our Q for wireless adjusted EBITDA declined one 1%, reflecting the flow through of the lower roaming revenue.

This result present represent a stable on sick.

Sequential improvement from Q3 and Q.

Q2.

Wireline revenue increased by 14% year over year and wireline adjusted EBITDA growth of one 5% remained in line with the previous quarter.

These results reflect continued strong performance from acquisitions as well as our organic growth across our business.

<unk> to the acquisitions. We are also working through from near term J curve impact as we look to integrate and elevate the value of our recent acquired assets across Telus health and tell us agriculture.

While we saw some recovery in Q3 and into Q4, we continued to see temporary impact on some of our business customers as they navigate their own pandemic related headwinds.

In addition, we've had to absorb the impact.

Telus health.

And earlier in the year to Telus International operations on temporary site closures and restricting access.

With the strong customer growth.

In both segments that we have spoken about there's also upfront costs associated with that however, we are encouraged by the underlying trends with improving monthly revenue.

For both new and renewing customers and increased product intensity across all our products.

And as always we are relentlessly focused on strong cost containment initiatives across the organization.

On a consolidated basis Q4 revenue grew five 2%, bringing our full year revenue growth of five five and on a consolidated adjusted EBITDA.

Slight decline of 2% in Q4, but our full year adjusted EBITDA was up two percentage.

Free cash flow for the quarter was up more than 60% while for the full year free cash flow total $1 for three 5 billion and impressive oppressive impressive accomplishment.

Without making any sacrifices to our capital expenditures.

I am pleased to say that we achieve the revised expectations of each day and our Q2 2020 release, which was made at a time when there was a significant debt.

On where the economy was going.

Our consolidated targets announced today reflect the confidence we have on our business. These targets are underscored by the consistent strategy and superior execution, we have.

Continue to drive economically accretive loading, which will support positive financial outcomes and sustainable cash flow.

As well, we're excited about the growth profiles of our unique asset mix and product offering.

With the potential for heightened wireless consumer activity in 2020 line. We currently estimate an increase cash requirement of approximately $200 million related to device activations and upgrades.

As we estimated there were deferrals journey.

Pandemic.

Does this represent the cash out flow our free cash flow definition.

The impact of that working capital.

As previously announced our 2021 capital expenditures are expected to remain in line of 2020.

With regards to our leverage we remain committed to investment grade credit ratings and we are confident.

And consistent on our track record.

Within our growth strategy, including participating in upcoming spectrum auctions, and we will continue to produce strong free cash flow.

Importantly, we will continue to work towards Delevering over time, primarily through EBITDA growth along with the proceeds from the IPO of Telus International and in the near term continued free cash flow growth.

Before we move to the Q&A period, I just wanted providing on.

On our reporting changes that are coming on later in the year.

Okay.

I've spoken about this on the pads and we're transitioning to new reporting segmentation.

Your line with how we manage our business and how our business is evolving.

One segment will represent Telus International and other segment will capture the rest of tablet.

In the upcoming weeks and subsequent Ti reporting its financial results for the year, we will provide revised iron supplement to demonstrate how we will have this for luck, including for the past eight quarters of historical information to help the transition.

This disclosure will also help with any definition differences between Telus and Telus International.

And the treatment of intercompany balances.

That let me turn it back to Robert to begin the Q&A.

Thank you Doug.

Hi can you proceed with the question period. Please.

Of course first question comes from Robyn <unk> from Canaccord Genuity. Please go ahead.

Thanks for taking my questions one foot tower and one for Doug. Please so for for Darren obviously with the.

The growth that we're seeing in Ti T H and the acquisitions you've made on the AD tech side that portion that lets call. It the high growth portion of the business.

<unk> is developed to a meaningful part of revenue and EBITDA tracking towards low to mid teens, depending on how you estimated and one can argue.

Tracking towards 20% on a value basis, given what the market values are for these assets.

Is there as we kind of look at Telus had a breaking away from the rest of the debt peers on that front.

Are there any medium to long term targets that you have in mind for the.

The combination of these two components in terms of debt mix within that the overall.

<unk> consolidated numbers, because obviously that has implications for the stock and valuation is down the line and then if I may just ask a question from Doug straight away as well.

Obviously with the reporting changes Doug that you were talking about.

It gets a little bit difficult to discern profitability around wireline as well as set a free cash flow generation on legacy wireline now that we have a sense of with Ti is.

There's obviously a lot of moving pieces with AG Tech and some of the other items you talked about how can we get a sense as to.

How telus is achieving set of some of the wireline margin improvements that.

For the company has certified itself over the last over the <unk>.

Last couple of years.

Thank you.

Okay. Thanks for the question.

To be explicit about it in terms of are there medium to longer term targets that I have for our Telus health business, our agriculture business and our security business.

Yes, there are quite explicitly actually.

Secondly.

Those targets are clearly not something I'm going to disclose.

Within this form they are competitively sensitive.

But they are specific.

And they are ambitious.

I think it's also perhaps may be helpful to.

To the street.

That you can draw inference from what's happened with Telus International.

Theres a tremendous number of similarities between the two on I think you can draw inference from what's transpired at at Ti in terms of what it portends for our emerging growth businesses prospectively.

To give you some detail.

Behind it as it relates to health agriculture and security.

Mike.

Medium to longer term goals are all about profitable scale.

So it's value creation.

Entered around profitable scale to build tremendous assets of consequence within those businesses.

And that's what we're setting out to do with a very specific game plan in that regard. The other thing that is I think more and more clear to people is the synergistic nature of Telus Corporations' focus on technology and data centric.

Digital strategies that are getting imparted to our emerging growth assets on the health the AG and the security front, it's all about our digital progression.

And then lastly.

On the form that bringing these particular emerging growth businesses to fruition into the value centric assets of consequence that I've just articulated it gives us tremendous optionality.

And not just in the future, but currently in terms of how we can leverage those assets. They are their growth profiles. Their makeup in servitude to the growth ambitions that we have for them along the way be it organic be it third party partnerships or acquisitions.

Acquisitions to create the right composition of capabilities on a global basis, that's going to support the growth profile that we would all like to see.

So that's that's the mentality here and the only thing I would add to close is that we will be giving the street, increasing insights into our health and AG businesses and security as well.

As the 2021 year unfolds.

It's synergistic with our technology and data strategy is key.

Doug I'll, let you finish up.

Thank you Darren.

We will be continuing to show.

I would call it very relevant in key metrics.

Analysts and shareholders alike will be able to do a proper and effective assessment of the value proposition that telus is generating across our multiple product sets.

Then on.

The.

On reporting extreme for for telecom for a better term at the moment.

Would include still.

<unk> loading and key metrics on which to Darren client will also include met.

Metrics on on healthcare and AG Tech over time.

We could be including revenue on gross margin for certain of those product sets as well.

And that would be very direct to to the product offerings on which we're delivering and so as we roll that out you'll be getting more and consistent approach.

For for those that are reporting strange with the convergence of broadband in and when you think through how we deliver our services.

As a point, where a lot of the cost structure that you have below those products that's in those product deliveries become allocations.

And as we go through and deliver the best broadband service to Canadians irrespective of debt the wireless and wire on wireline old categorization.

Debt, we're going to deliver it and we're going to have the best customer service in the expense networks either way.

So we will then just show that consolidated telecom.

Segment for our conclusion.

But the Kpis will give you what you need to be able to do a formal assessment of the value drivers.

And what the delineation on the Capex front on fiber <unk> and digital means specifically to our emerging businesses on health.

In security.

Yes.

Thank you that's helpful I'll pass the line.

And that's already in place.

Of course next we have a question from drew Mcreynolds from RBC. Please go ahead.

Yeah. Thanks, Thanks, very much just two for me first on.

The mobile connected devices that you began disclosing your kind of closing in on about $2 million of them, obviously, another strong quarter.

Darren starting off with you can you maybe give a little more granularity as to how the loading mix has evolved the basin devices by type has evolved are you able to help us out on any service revenue impacts.

And then second question on the agreement with Google.

Really kind of reads very interesting still trying to assess the magnitude of this so could you flush it out a little bit more in terms of specifically where it is unique relative to your Canadian peers are or maybe even north American peers. Thank you.

Jim why don't you take the first part.

And then Tony UN Zeno can finish off with some color on Google and on.

Up thereafter.

Sounds good so.

And the connected devices portfolio.

We're seeing.

More of a mix towards Iot type connections.

Correct.

This quarter our <unk>.

Tablet net loading declined slightly.

So on the Iot front.

It's everything from transportation to enabling home security.

So a wide variety of Iot applications.

The installation of modems smart hubs.

Specialized devices.

This category.

Is growing and it's going to become more and more important for.

<unk> rolled out.

We will start to see even more applications happening with low latency and.

And also this category is going to really help accelerate the investments, we're making on Kennedy health.

In terms of service revenue.

I don't want to give an exact number but suffice to say these are lower arps, who connections, but very high margin because you don't have.

Any device subsidy.

And.

Very little cost to support them. So it's very accretive from a margin perspective, and as it's growing it's becoming more material on market.

Tony.

Thanks Darren.

True.

Yes, So let me tell you a little bit about the Google relationship has its evolving.

Over the latter half of last year Dougal reached out.

Yeah tell us would be interested in participating in that Google digital transformation partnership program.

And we set up to join executive teams for Q4 to do some due diligence on what this would look like and we followed a structured framework.

They conduct about maybe 12 of these partnerships annually with global leading players will have on alignment and cold share in aspirations to transform segments of an industry, our industry can deliver beneficial consumer or customer outcomes.

And drive some social good.

So the two executive leadership teams were working through Q4 to construct a framework that would create a number of swim lanes of activity, where we would co create.

Capabilities that would transform one of our telecom.

Business as well as.

Putting more fuel into the fire on on the transformation, we're already well under way on and as you can see by our results throughout 2020, despite massive channel disruption digital capabilities allowed us to drive.

Peer peer best performance on the show customer loading.

It also allows us to focus on some of the exciting new growth areas that darrin on articulated, particularly around the check on the health space where.

Google's ability to drive.

Digital transformation.

Leveraging the data analytics capabilities, along with our combination of small assets can bring together some really transformative.

Outcomes that will propel the <unk>.

Global.

Capabilities that we want to deliver particularly in AG that kind of on health.

So we think that is.

As an exciting opportunity.

Co committed for a 10 year.

Arrangement, where we will invest some standard playbook parties, but we expect to see a four to 10 times investment return.

We pay all of those areas of focus into driving go to market initiatives that will deliver value for both organizations Zane on might be you'd like to talk on some of the specific tell us related capabilities that you're focused on.

We're excited about the fact that the core capability as Tony referenced are going to unleash some cost efficiency and other.

Creative economics, so that we can invest in that innovation.

Yes.

Thank you.

Thanks for question.

Alright. Thanks.

Okay.

Next question comes from Vince Valentini from TD Securities. Please go ahead.

Yes, thanks very much.

I would like to try to clarify on clean up a couple of things have already been discussed and then a big picture question for for Darren.

Just on the last one on Google can you just clarify is there anything here that pigeonhole you into having to deal with Google exclusively because I think one of your competitors has done some kind of partnership with AWS and other ones announced something with is your does this mean everybody sort of picks there.

For scale or partner and moves forward or do you just to have flexibility to deal with anybody you want when it comes to the new world of <unk> and whatever other services just one clarification another Doug I'm not sure if you're on.

You are circling around a little bit, but can you be specific I mean will we see Telus health.

One of the line items that will we will get revenue for on a consistent basis starting when.

When you move to the new rewarding assuming that's that's in Q1 or is it still going to be somewhat anecdotal on Telus health disclosure as high as it's been in the past.

And then the bigger picture question for you Darren.

Phenomenal.

I think you've achieved faster than I expected and maybe faster than you expected to have Telus international market cap would be higher than what the original Telus <unk> merged company was way back when you. When you took over so kudos to you on that I will remind you I think you said at the time that thats.

Q4 2020 Telus Corp Earnings Call

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