1. Investor conference call
Q TELUS
Investor conference call
August 8, 2008

2. TELUS forward looking statements
This session and answers to questions contain forward-looking statements that require assumptions about expected future events and financial and operating results that are subject to inherent risks and uncertainties. There is significant risk that assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual guidance.
Factors that could cause actual results to differ materially include, but are not limited to: competition (including more active price competition and the likelihood of new wireless competitors beginning to offer services in 2009 following the AWS spectrum auction); economic growth and fluctuations (including pension performance, funding and expenses); capital expenditure levels (increased in 2008 by purchases of wireless spectrum in the AWS auction); financing and debt requirements (including share repurchases and debt financings); tax matters (including acceleration or deferral of required payments of significant amounts of cash taxes); human resource developments; business integrations and internal reorganizations (including post-acquisition integration of Emergis); technology (including reliance on systems and information technology, evolving wireline broadband and wireless next generation technology options and the possible need for prospective wireless sharing arrangements to achieve cost efficiencies and reduce deployment risks); regulatory approvals and developments (including interpretation and application of tower sharing and roaming rules, the design and impact of future spectrum auctions, the new media proceeding and possible changes to foreign ownership restrictions); process risks (including conversion of legacy systems and billing system integrations); health, safety and environmental developments; litigation and legal matters; business continuity events (including manmade and natural threats); any prospective acquisitions or divestitures; and other risk factors discussed herein and listed from time to time in TELUS’ reports and public disclosure documents including its annual report, annual information form, and other filings with securities commissions in Canada (on and filings in the United States including Form 40-F (on EDGAR at
For further information, see Section 10: Risks and risk management in TELUS’ annual 2007 Management discussion and analysis, as well as updates reported in section 10 of TELUS’ 2008 quarterly Management’s discussion and analysis.

3. Investor conference call
Q TELUS
Investor conference call
Darren Entwistle
President & Chief Executive Officer

4. Satisfactory progress and accomplishments
176,000 wireless net additions for Q2
7% decrease in total cost of acquisition
Year-over-year improvement in churn to 1.43%
Solid wireline revenues growth, driven by data
Resilient long distance revenue and small improvement in access line losses
70% increase in high-speed Internet net additions
Successful conversion of 1 million B.C. customers to integrated IT system 4

5. Challenges Decrease in wireless ARPU
Competitive voice pricing more than offsetting strong data growth
Not yet gaining full traction in continuing efficiency initiatives 5

6. Advancing our national growth strategy
Looking ahead
Focusing on corporate priorities
Focus on data and wireless
Build scale in chosen vertical markets
Extract productivity gains from efficiency initiatives
To meet endemic challenges of wireline industry and J curve economics of new business
Evaluating future technology
Successful track record of executing technology evolutions
Complex deliberations are ongoing
Advancing our national growth strategy 6

7. Investor conference call
Q TELUS
Investor conference call
Robert McFarlane
EVP & Chief Financial Officer

8. Revised guidance reflects positive trends in data and loading
Wireless Q2 highlights
Strong wireless results – record Q2 additions with low COA
Postpaid value oriented brand launch going well
Encouraged by recent trend in churn
Strong growth in data as smartphone adoption accelerates
Orderly iDEN to PCS migration for non-PTT users continues
Revised guidance reflects positive trends in data and loading 8

9. Wireless segment – Q2 2008 financial results
Change
Revenue
1,048
1,142
9.0%
EBITDA (reported)
451
485
7.6%
EBITDA (as adj)1
453
486
7.4%
Capital expenditures
173
115
(34)%    
1 EBITDA (as adjusted) excludes net-cash settlement feature expense (recovery) of $1M and $1.8M, respectively, in the second quarter of 2008 and 2007.
Continued strong growth with EBITDA
reflecting record loading 9 9

10. Wireless subscriber results
net additions
wireless subscribers
prepaid
1.1M
176K
Prepaid
20%
postpaid
128K
90%
Postpaid
80%
77%
4.7M
Q2-07
Q2-08
5.8 million total
Excellent net adds with high proportion postpaid 10 10

11. Wireless ARPU Wireless data revenue of $159M, up 54%
$63.65
Voice
$62.73
6.58
9.17
57.07
53.56
Q2-07
Q2-08
Wireless data revenue of $159M, up 54%
with data representing 15% of ARPU 11 11

12. Excellent marketing efficiency driven in part by value brand launch
Wireless marketing
Q2-07
Q2-08
change
Gross adds
354K
422K
19%
Churn
1.45%
1.43%
(2) bps
Marketing expenses
$115M
$121M
5.8%
COA per gross add
$425
$332
(22)%    
Excellent marketing efficiency driven in part by value brand launch 12 12

13. Most smartphones on Canada’s largest high-speed network
TELUS a leader in consumer smartphone adoption 13

14. 2008 guidance* - wireless segment revised
2008 original targets
2008 revised guidance
Revenue
$ $4.725B
$ $4.725B
EBITDA
$ $2.150B
$ $2.100B
*See forward looking statement caution
Wireless revenue narrowed to high end of range with
expenses reflecting strong subscriber and data growth 14 14

15. Wireline Q2 highlights
Solid revenue growth driven by data growth including acquisitions
Encouraging high-speed Internet net adds
Continued moderate NAL losses
Conversion of residential customers in B.C. to new integrated wireline billing and client care system
Expenses impacted by large enterprise implementations in Central Canada and strong Internet and TV loading 15

16. Wireline segment - revenue profile
Q2-07
Q2-08
Change
Voice – Local
516
497
(3.6)%
Voice – Long Distance
168
175
4.2%
Data
434
521
20%
Other 62 63
1.6%
Total External Revenue
1,180
1,256
6.5%     
Reported revenue growth led by strong data growth
and inclusion of Emergis results in 2008 16 16

17. Long distance and data revenue normalized
Reported long distance revenue increased 4.2%
Down 3.5%, excluding one time impact of AB billing conversion in Q2 2007
Reported data revenue increased 20%
Increased approx. 7% when normalized for acquisitions 17

18. Wireline segment – Q2 2008 financial results
Change
Revenue
1,180
1,256
6.5%
EBITDA (reported)
434
433
(0.3)%
EBITDA (as adj)1
431
(0.6)%
Capital expenditures
309
321 4%    
1 EBITDA (as adjusted) excludes net-cash settlement feature expenses (recovery) of $(1.3)M and nil, respectively, in the second quarter of 2008 and 2007.
EBITDA impacted by COA associated with
broadband services, and large complex deals 18 18

19. Emergis integration update
Post-merger integration going well
Focusing on cross selling opportunities
Updated three-year plan for healthcare and financial services
Business units aligned including:
Finance
Human Resources
Marketing
IT/IS
TELUS recognized leader in health care vertical in Canada 19

20. Internet subscribers Regaining momentum in BC and AB
High-speed Internet net additions
Internet subscribers
142K
Dial-up
12%
24K
14K
High-speed
88%
1.1M
Q2-07
Q2-08
1.2 million total
Regaining momentum in BC and AB 20 20

21. Moderate Network Access Line losses vs. peers1
Other
-3.1%
-3.4%
-3.9%
-4.8%
Q2 2007
-6.7%
Q2 2008
-8.1%
-7.8%
-8.5%
1 Includes a weighted average of Bell, MTS and Bell Aliant. MTS percentage based on analyst estimate
TELUS compares favourably to North American peers 21

22. Billing and client care system update
TELUS continues to migrate residential subscribers in B.C. to new converged wireline billing and client care system
Converted more than 1 million B.C. residential customers
First time ever B.C. and AB systems converged
Initial indications that mid-July BC cutover went well with no order entry difficulties or extra costs
Expected benefits include:
Streamlined and standardized processes
Elimination of multiple legacy systems over time
Positive early experience with implementation in B.C. 22

23. 2008 guidance* - wireline segment revised
2008 original targets
2008 revised guidance
Revenue
$ $5.075B
$ $5.100B
EBITDA
$ $1.800B
$ $1.800B
*See forward looking statement caution
Wireline revenue and EBITDA tightened to high end of range 23 23

24. TELUS total customer connections
11.4
10.9
10.4
(millions)
Res NALs
Bus NALs
Dial-up Internet
High-speed Internet
Wireless
Q2-06
Q2-07
Q2-08
Wireless and Internet represent 62% of total connections 24 24

25. Consolidated – Q2 2008 financial results
($M excluding EPS)
Q2-07
Q2-08
Change
Revenue
2,228
2,399
7.7%
EBITDA (reported)
885
918
3.7%
EBITDA (as adj)1
886
917
3.5%
EPS (reported)
0.76
0.83
9.2%
Capital Expenditures
482
436
(9.6)%     
1 EBITDA (as adjusted) excludes net-cash settlement feature expenses (recovery) of $(0.3)M and $1.8M, respectively, in Q2-08 and Q2-07.
Solid revenue and EPS growth with higher operating expenses and depreciation 25 25

26. EPS continuity
$0.03
$0.83
 $0.02
$0.03
$0.04
$0.76
$0.06
$ 0.07
$ 0.04
Q2-07
reported
EBITDA1
Lower shares
o/s
Financing expenses
Dep’n & Amort
COA & COR
2007 IT system impact
2007 Amp’d write-down
Q2-08
reported
1 Normalized to exclude billing system, Amp’d Mobile impacts, acquisition and retention, and reassessments.
Lower financing costs & shares o/s offset by higher depreciation and COA / COR 26 26

27. Share buy backs – Normal Course Issuer Bid
Q2-08 Program 4
Since NCIB inception (2004)
Total investment (M)
$76.7
$2,719
Total shares repurchased (M)
1.7
57.6
Outstanding shares (M)
319.8
38.7
% change in o/s shares
(end of period)
3.6%
11%
Since Dec. 04   
Quarterly dividend payment of $144M
Shares outstanding down 3.6% year-over-year
and 11% since NCIB inception 27 27

28. 2008 guidance* - consolidated revised
2008 original targets
2008 revised guidance
Revenue
$9.6 to 9.8B
$ $9.825B
EBITDA
$3.8 to 3.95B
$3.8 - $3.9B
EPS – basic (as adj. excl. tax adj.)
$3.50 to $3.80
$ $3.70
Capex (excl. $880M spectrum auction)
Approx. $1.9B
no change
*See forward looking statement caution
Guidance revised to reflect year-to-date performance.
Increasing revenue guidance and narrowing earnings ranges 28 28

29. AWS spectrum auction completed
Two month AWS auction closed July 21
Total gov’t proceeds of $4.25 billion after 331 rounds
Cost of spectrum nearly 3X initial estimates
282 licenses conditionally assigned to 15 companies
TELUS total bid $880 million
Spectrum cost to be recorded in Q3 2008
Acquired valued national spectrum - avg MHz
Expected to provide capacity for future 4G services
TELUS well positioned for eventual rollout of 4G services 29 29

30. Financing update
Increasing commercial paper (CP) program by $400M to $1.2B
DBRS confirmed CP rating August 7th
100% back stopped by TELUS’ $2B syndicated bank facility
CP represents lowest cost source of funds available for TELUS
Expect to be used in large part to fund spectrum acquisition costs
Commercial paper provides TELUS with cash management flexibility and lower cost of funds 30 30

31. Summary Solid consolidated revenue growth
Encouraging wireless trends including loading, churn & data
Acquired valuable spectrum nationally in recent AWS auction
Initial success of migrating B.C. residential subscribers to new integrated billing and client care system
Positive momentum with internet & TV loading; NAL losses moderate & stabilizing
Minor revisions to 2008 guidance to reflect year to date operating results
Cost control is a key focus for remainder of 2008
Increased CP program by 50% to $1.2 billion
Good quarter of operational execution, record loading,
and successful IT system implementation reinforcing guidance 31 31

32. questions?
investor relations
telus.com 32

33. Appendix – Free cash flow
2007
2008
C$ millions Q2 Q2
EBITDA
884.6
917.6
Capex
(481.8)
(435.6)
Interest expense paid (includes income tax interest income)
(212.9)
(175.1)
Cash income taxes; and other
(2.9)
(5.9)
Add back option & RSU expense less RSU cash paid
(8.9)
10.1
Restructuring payments (net of expense)
(7.3)
(1.5)
Donations and securitization fees included in other expense
(9.1)
(7.3)
Free Cash Flow
161.7
302.3
Issues (redemptions) of common shares, net
0.2
0.1
Purchase of shares for cancellation (NCIB)
(169.5)
(76.7)
Dividends
(125.0)
(289.4)
Acquisitions -
(1.1)
Working Capital and Other
66.8
73.0
Funds Available for debt redemption
(65.8)
8.2
A/R Securitization
350.0
(350.0)
Net debt issuance / (repayment)
(815.9)
338.4
Increase (Decrease) in cash
(531.7)
(3.4) 33

34. Appendix - definitions
EBITDA: Earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization
Capital intensity: capex divided by total revenue
Cash flow: EBITDA less capex
Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, and cash related to Other expenses such as charitable donations and securitization fees
Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue
TELUS definitions for non-GAAP measures 34