Business model of Telus

Customer Segments

Telus serves a wide range of customers.  The company’s core customers can be organised broadly into the following categories:

• General Consumers, comprising the general consumer population, to which the Company offers a wide range of products and services that cater to a broad spectrum of customer demographics, including all income brackets;
• Businesses, comprising small, medium, and large commercial enterprises to which the Company provides a range of services and solutions, including telecommunications services and business and IT solutions; and
• Healthcare Providers, comprising various healthcare providers and medical organisations to which the Company provides specialised technology and data solutions.

Telus is based in Canada, which is also the Company’s core market.  The Company does not appear to have any significant international operations or service offerings.

Value Propositions

Telus provides value to its customers in the following ways:

• Standing and Reputation – Telus is an established and trusted provider of telecommunications services in Canada, with a track record for offering high quality and reliable services and solutions;
• Innovative Solutions – Telus is dedicated to developing and implementing new and innovative solutions to its customers, particularly with regard to its offerings in the healthcare data solution space;
• National Reach – Telus is one of the largest telecommunications companies in Canada, where it is a market leader, offering services to customers across the country via a network of service centres and sales offices;
• Broad Service Offerings – Telus offers a wide range of services – including telecommunications services, business solutions, and healthcare solutions – that cater to the needs of a broad customer base including consumer and commercial enterprises; and
• Experience and Expertise – Telus employs highly trained personnel across its various operating divisions, ensuring that it is able to provide effective solutions, as well as an experienced senior executive team.

Channels

Telus sells its services and solutions to customers directly.  The Company offers business services, including healthcare, across its wireless and wireline segments via a network of sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses.

The Company’s business process outsourcing services are supported through sales representatives and client relationship management teams.

Customer Relationships

Telus provides services directly to its customers, its employs a large network of sales personnel across its sales centres and call centres.  These employees interact directly with customers, offering tailored advice and responding directly to concerns and complaints.

The Company operates separate sales and service organisations for its business data and healthcare data solutions which require more in-depth collaboration with customers.

Telus operates a website at www.telus.com, through which it hosts it provides information concerning its various services, operating locations, data solutions, corporate structure, and community involvement.

The Company also provides an online customer portal through which customers are able to access information concerning their own accounts and services.

Telus operates a dedicated customer support organisations, which operates out of the company’s offices and provides personalised support to customers over the phone and online.

The company is also able to communicate directly with customers through its various social media accounts, including with  LinkedIn, Facebook, and Twitter, through which it is additionally able to address customer concerns.

Key Activities

Telus is a leading Canadian telecommunications company.

It is engaged in the provision of various telecommunications services and products, including wireless and wireline voice and data.

Its data services include Internet protocol, television, hosting, managed information technology and cloud-based services, and certain healthcare solutions.

The Company organises its operations into two core  business segments: the Wireless Segment and Wireline segment.

Its wireless and wireline businesses are primarily operated through Telus Communications Company.

Key Partners

Telus works closely with a wide range of partner companies and organisations.

Its principal partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of equipment and resources that support the Company’s core operations, as well as third party provider of services that support the Company’s corporate activities more broadly;
• Sales and Service Partners, comprising various third-party resellers and independent dealers that market and sell Telus products and services on the Company’s behalf;
• Technology Partners, comprising various technology companies that assist Telus in the development and implementation of innovative data and business solutions, particularly within the healthcare industry;
• Community and Sustainability Partners, comprising various non-profit bodies and charitable organisations with which the Company collaborates on various community and sustainability projects in Canada; and
• Strategic and Alliance Partners, comprising various other companies with which the Company collaborates on marketing, business development, and other projects’

Telus has agreed a number of partnership deals in recent years.

This includes a recent tie-up with CN to extend the company’s sales and service reach, as well as a tie-up with BlackBerry and accelerator L-Spark Corp in the development of Internet of Things solutions.

Key Resources

Telus’ business model depends on its ability to provide efficient and reliable telecommunication services, as well as innovative data solutions.

As such, the Company’s key resources are its intellectual properties and proprietary technologies, its IT and communications infrastructure, its sales and service operations, its partnerships, and its personnel.  The Company notably owns and or leases a network of physical assets across Canada, including sales centres, corporate offices, and service centres.

Cost Structure

Telus incurs costs in relation to the development of new and innovative solutions, the maintenance and development of its IT and communications infrastructure, the operation of its physical assets – including occupancy and utility costs for its sales and service centres, the management of its partners, the procurement of equipment, the procurement of third party services, and the payment of salaries and benefits to its personnel.

In 2018, Telus recorded total annual operating expenses of USD 8.95 billion.  These expenses were split fairly evenly between the Company’s two operating segments.

Revenue Streams

Telus generates revenue through the provision of telecommunications services, data and business solutions, and healthcare services to customers in Canada.

The Company derives its revenue under various sales and service contracts agreed directly with customers across its Wireless and Wireline operating segments.

In 2018, Telus generated annual revenue totalling USD 14.37 billion, an increase in the USD 13.41 billion recorded by the Company in 2017.

The Company’s Wireline segment accounted for around USD 6.44 billion of the Company’s revenue, while its Wireless segment accounted for around USD 6.03 billion.  The remainder was attributed to other services.