Team Research Project Part 2: Final Report
Team Research Project Part 2: Final Report
Initial Report
Objective
The purpose of this research paper has been to provide a practical experience and research on Telus. Choosing Telus as a research topic is because it is an Information Technology and telecommunication-based company. Not only that, But Telus is also a Canadian company that will make research and learning more flexible and comprehensible.
Introduction
The telecommunications industry in Canada is an industry that is dominated by a few key players. Certainly, providing a vital service by connecting consumers to one another across the globe, Canadian telecommunications companies offer services to over 37.81 million people generating revenues of approximately 53.1 billion Canadian dollars in 2018, a number that grows more each year. Canadian Telecommunications is split into 24.8 million wireline customers and 28.3 billion wireless customers with wireless customers growing consistently (Statista, 2021). The second largest wireless carrier in Canada is Telus.
Organizational Description
Telus is a Canadian telecommunications company that is based in Vancouver, British Columbia. They provide a large variety of different services including telecommunicating solutions for example, voice phone calls, video calls, SMS, Video Entertainment, IPTV, and Internet access. The organization is made up of a parent corporation (the Telus Corporation) and subdivisions consisting of Telus Mobility, Telus TV, Telus PureFibre Internet, Telus International, Telus SmartHome Security, and Telus Health, and subsidiaries consisting of Public Mobile (recently acquired), Alarmforce Canada, and Koodo Mobile (Telus/About, 2021). Darren Entwistle is the current President and CEO of the company. Telus current enterprise value has quadrupled over the past 20 years and is now at approximately 51 billion. Telus is also ranked as Canada’s strongest Telecommunication company (Darren Entwistle, Executive Team Bio, 2021).
Information Technology Systems
Telus Mobility currently works on an HSPA+ and LTE Networks. The HSPA+ network was launched on November 5, 2009, as with an ongoing partnership with Bell Mobility, Telus Mobility currently uses the same networks. The HSPA+ network operated on the frequencies of 850/1900 MHz This network provides a large spread of coverage, about 97% of Canada gets some coverage, with 70% getting 42Mbit dual coverage channel areas (Compare Cellular, 2021)
The LTE Network for Telus was launched in February of 2012 again in a partnership with Bell. Telus advertises LTE speeds of up to 110 Mbit/s and download speeds of up to 225Mbit/s (Compare Cellular, 2021). The LTE network uses a variety of frequency ranges for its 4G LTE service depending on the rurality of your location.
Telus internet provides mobile broadband service which uses the HSPA+ and LTE networks and can be connected using USB (Universal Serial Bus) ports of a personal computer. Telus PureFibre, while only available in certain areas of the country, provides 100% fibre optic internet connection to customer’s homes. Telus PureFibre is rated as the #1 internet technology for speed and reliability and offers Upload speeds advertised to be up to 9x faster than the competition. This expanded speed offers up major benefits to lots of different types of computing, but PureFibre advertises as “the best internet technology for gaming” (FAQ – Fibre Optic Home Internet – Purefibre, 2021).
Information Technology Challenges and Opportunities
One of Telus’ biggest challenges in the Mobile telecommunications sector is the company’s reliance on Bell and their network partnerships. Currently the partnership with Bell is very beneficial, Telus gets the use of a large national network for its cellular products, however such reliance with another company that may have different motives, goals, or strategies is certainly concerning. The vast size of the network needed in Canada is also a large challenge for all telecommunication companies hoping to do business in the great white north. The desire for increased competition in Canada combined with the excess demand in usage of networks due to people working from home because of the Covid-19 virus also pose challenges to Telus’ productivity and bottom line as people do not seem to be decreasing their network usage anytime soon. (Daigle, 2020)
One potentially large area for growth opportunity comes with expansion into a 5G NR (New Radio) network. Telus announced a partnership with Ericsson, Nokia and Samsung to roll out the 5G network across Canada. This expansion is expected to contribute approximately 40 billion dollars annually to Canada’s economy, provide an estimated 250,000 jobs and increase the speed, functionality, and abilities of devices using the Telus Network. This 5G NR network works on a 1.7/2.2 Ghz Frequency range (TELUS launches first wave of its 5G network, 2021).
Another one of the largest problems facing the firm is one that is essential for all Canadians: the healthcare system. Through the information technology available to Telus, they can identify ways for physicians to obtain health information simply and quickly. They may keep loads of information in the cloud and access it whenever necessary. Telus has also created programs for parents, which will be available for their doctor’s inspection, to follow the health and growth of their kids regularly. By contracting with or cooperating with 3M, Telus may extend IT to better manageable artificial intelligence and link over 500 hospitals worldwide remotely with improved healthcare information. In our perspective, this would be Telus’ finest move in terms of IT since it helps them to discover a method to best suit their customers’ demands.
Part 2:
Objective
The purpose of this section of the research paper is to provide real life examples of the practical experience and research on the telecommunication and IT corporation Telus. In this report our group intends to provide journalistic and peer reviewed reports that explore the challenges we presented in our initial report.
Chosen Solutions
The telecommunications industry provides many interesting challenges for the IT company. Previously we explored some of the most prevalent challenges that the second largest wireless carrier in Canada, Telus faces. One of these apparent challenges was the company’s reliance on Bell (BCE Inc.) for its network technology connection. Upon our further research we found that this relationship is changing with the expansion and adaptation of new IT technology. Although Telus does rely on Bell for 3G and 4G connectivity, as 5G connectivity becomes implemented Telus (still partnered with Bell) now has an ownership stake of the network infrastructure. Bisson (2021) explores how playing nice with the other Telecommunication companies has been beneficial for Telus. He explains how the Big Three (Bell, Telus, and Rogers) have an Oligopoly on the 5G networks. As of 2019 the CRTC reports that 90.7% of Canada’s 5G wireless network is owned by the Big Three. Bisson also goes on to explain how Telus is the most expensive of the networks currently based on average used data plans. Here Telus has a clear chosen solution, parlay their relationship with Bell into an ownership stake in future networks.
Another challenge we explored was Covid-19 and the potential problems it would present to Telus’ network and its customers. Although throughout the majority of the pandemic’s current peak of stay-at-home work Telus’ network performed fine, there was one major issue. One massive PR disaster occurred when the Telus phone communication system failed the BC healthcare network. Zussman (2021) shows a story where Telus certainly isn’t painted in a good light. Vancouver Coastal Health patients were reliant on the call center to book Covid-19 vaccinations in the heat of the pandemic and center’s employing Telus IT communication technology were not working properly. Obviously not an expected problem to occur because of the Covid-19 pandemic, but hopefully one that is easy to remedy by continue to aid with Covid-19 relief efforts. Healthcare is certainly an issue that Telus would like to aid in helping citizens and providing solutions, but a company so large must consider the consequences associated with providing solutions for governmental contracts like call centers. We are not saying it’s something that shouldn’t occur, but the risks need to be analyzed and weighed against the benefits associated.
Implementation Plan
The implementation of the large 5G network infrastructure is of utmost important to the future success of Telus and the main focus of its current ventures. To make these massive investments that are required to setup 5G network connectivity in a nation as large as Canada, and to parlay relationships with the other largest telecommunication companies in the nation Telus needs to come up with a lot of cash up front. Posadzki (2021) reports on the 1.3-billion-dollar stock release that had to occur to help fund Telus’ investment in 5G connectivity infrastructure in Canada. Telus raised this cash by releasing 25,000,000 common shares at a price of $52 CAD per share. Further exploring Telus’s implementation of 5G infrastructure, in June of 2020 Telus announced that Ericsson and Nokia, two European companies, would be the lead suppliers of 5G technology for Telus and Bell in conjunction. This decision isn’t altogether surprising, although Telus does rely on Chinese company Huawei for some of its 4G LTE network service. Ericsson’s Radio Access Network (RAN) technology is top of the line 5G infrastructure technology used by Telus and Bell’s most relevant competitor, Rogers Wireless (The Canadian Press Staff, 2020). Telus implementation of 5G network technology has been relatively seamless, with network availability growing more each day and as local businesses begin to implement 5G technology this technological advantage will lead to successful market share for Telus.
Hardy (2021) shows how Telus continues to play nice with the Canadian Government by securing grant money to expand their fibre network along the BC coastlines. Continuing this sort of expansion by securing grant funding for infrastructure projects such as the Universal Broadband Fund (UBF) must be a integral part of the Implementation plan for Telus (Hardy, 2021).
Conclusions
MarketLine (2021) did a SWOT analysis on Telus as recently as April and they concluded that Telus exposure to threats was still in three main areas, issues with the Government and regulations, pressure from competition increasing costs, and rapid technological changes. Our implementation plan addresses all these concerns. In conclusion the importance of successfully integrating our implementation plan is essential for the future success of Telus. Telus must play nice with Government the same way they successfully have played nice with the other telecommunication companies. They have shown that they can successfully finance their IT network infrastructure by relying on shareholders, the success of their stock, and charging the highest price for their service. Finally, by staying up to date with the pinnacle of 5G network technology available, Telus has ensured they will be a choice for the Canadian consumer for years to come.
References
Bisson, P. (2021, February 1). The telecom oligopoly and the advent of 5g networks in Canada. McGill Business Review. https://mcgillbusinessreview.com/articles/the-telecom-oligopoly-and-the-advent-of-5g-networks-in-canada.
Bourgeois, D. T., Smith, J. L., Wang, S., & Mortati, J. (2019). Information systems for business and beyond (Updated ed.). Open Textbook. https://opentextbook.site/informationsystems2019/
Compare Cellular. (2021). TELUS Canada 4G & LTE Wireless Network Coverage Maps. Compare Cellular. https://www.comparecellular.ca/telus-coverage-maps/.
Darren Entwistle, Executive Team Bio. TELUS. (2021.). https://www.telus.com/en/about/executive-team/darren-entwistle.
Daigle, T. (2020, March 20). Telecom networks deal with ‘unprecedented’ pressure as Canadians work from home | CBC News. CBCnews. https://www.cbc.ca/news/science/internet-phone-networks-under-strain-covid-19-1.5503818.
FAQ – Fibre Optic Home Internet – Purefibre. TELUS. (2021). https://www.telus.com/en/internet/fibre/faq?linktype=subnavlinktype.
Hardy, S. (2021, February 22). TELUS to build broadband network in southern British Columbia via Universal Broadband Fund. Lightwave Online. https://www.lightwaveonline.com/fttx/ftth-b/article/14198064/telus-to-build-broadband-network-in-southern-british-columbia-via-universal-broadband-fund.
MarketLine (2021) TELUS Corporation SWOT Analysis.. TELUS Corporation SWOT Analysis, 1–7.
Posadzki, A. (2021, March 25). Telus announces $1.3-BILLION stock sale to raise funds for capital spending. The Globe and Mail. https://www.theglobeandmail.com/business/article-telus-announces-13-billion-stock-sale-to-raise-funds-for-capital/.
Telecommunications in Canada. Statista. (2021). https://www.statista.com/topics/6951/telecommunications-in-canada/.
Telus/About. (2021). Telus About. https://www.telus.com/en/about#:~:text=TELUSisadynamicworld,andsecurityhealthcareandagriculture.
Telus Corporation. (2018, December 3). TELUS History. Company history All Content. https://web.archive.org/web/20160424064140/http://about.telus.com/community/english/news_centre/company_overview/company_history.
TELUS launches first wave of its 5G network (2021). https://www.telus.com/en/about/news-and-events/media-releases/telus-launches-first-wave-of-its-5g-network.
The Canadian Press Staff. (2020, June 2). Bell, Telus reveal 5G deals with European firms in major blow to Huawei. Global News. https://globalnews.ca/news/7015656/bell-ericsson-equipment-5g-network/.
Zussman, R. (2021, March 10). ‘We let them Down’: Telus Ceo apologizes for problems with VCH Vaccine booking system. Global News. https://globalnews.ca/news/7686364/telus-ceo-apology-backup-system/.