Q2 2006 TELUS investor conference call

Darren Entwistle • member of the TELUS team

August 4, 2006

Improving Canadian wireless industry* Q2 economics

Wireless industry remains vibrant and investing in growth

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Wireless industry revenue up 17%, subscribers up 11%

ARPU up 5% and churn down to 1.6%

Lifetime revenue up 8%

Average COA trend reverses down from Q1

EBITDA up 22%, margins @ 43.5%, cash flow up 24%

* TELUS, BCE and Rogers

Push to implement the Telecom Policy Report

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Supporting TPR panel and Industry Canada’s thought leadership

2005 VoIP decision referred by Cabinet back to CRTC

Local forbearance decision – appealed

Mobile TV broadcasting not regulated

Third local price cap proceeding underway for 2007

Other CRTC developments

Opportunity for positive regulatory and policy change

Total subscriber connections

Connections increasing with strong wireless and Internet growth

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Wireless

High-speed Internet

Dial-up Internet

Res NALs

Bus NALs

(millions)

Q2-06

10.4

Q2-05

9.99.4

Q2-04

2006 – second quarter review

Q2 review - consolidated

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2006 consolidated guidance updates

Revenue up $25M to $8.625 to $8.725B

EPS range increased 50 cents to range of $2.90 to $3.10

Capital expenditures up 3% to approx. $1.6B

Q2 review - wireline

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Moderate NAL decline and strong high speed Internet growth

Competition affecting LD revenue and non-ILEC

TELUS resilient relative to North American industry

Operating themes

Stabilize traditional services

Continue Future Friendly Home applications

Continue productivity and efficiency programs

Q2 review – wireline efficiency

Efficiency programs to continue with fourth phase

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Efficiency programs ongoing since 2001

Facilitated by new collective agreement

Three broad categories

Outsourcing

Consolidations

Process improvements

$30M restructuring charges in Q2 / $81M last 3 quarters

Q2 review - wireless

High speed EVDO deployment catalyst for further data growth

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Strong revenue growth of 18%

ARPU up for 14th consecutive quarter (yr over yr) due to data

EBITDA up 20% and margin up to 46.4%

EVDO network rolled out to 19 communities across Canada

Amp’d Mobile – CanadaPowered by TELUS

Exclusive arrangement and investment

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Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets

TELUS responsible for managing sales and distribution, billing, client care, network options and pricing

Targeting 18 to 35 age demographic and lifestyle

Exclusive licensing and service agreement – not a traditional MVNO

Amp’d Mobile is a premium brand with high ARPUs focused on mobile media not traditional voice and postpaid focus

TELUS Ventures investing US $7.5M in Amp’d Mobile, Inc.

Peter AddertonFounder & Chief Executive Officer

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Amp’d Investors

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Amp’d Is Mobile Media

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Q2 2006 TELUS investor conference call

Darren Entwistle • member of the TELUS team

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