November 6, 2009

November 6, 2009

Q3 2009 TELUSinvestor conference callRobert McFarlaneEVP & Chief Financial Officer

Darren EntwistlePresident & CEO

Joe NataleEVP & President, Consumer Solutions

Today's session and our answers to questions contain statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the 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 and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2009 guidance and a preliminary assessment of expected 2010 capital expenditure levels), qualifications and risk factors (including those associated with the deployment and operation of the new national high-speed packet access network and associated introduction of new products, services and systems) referred to in the Management’s discussion and analysis in the 2008 annual report, and in the 2009 first, second and third quarter reports. 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 targets and guidance.

TELUS forward looking statements

Wireless and wireline segment review Consolidated financial review Updates

OEP 2009 guidance

Corporate developments Questions and Answers

3

Agenda

($M) Q3-08 Q3-09 Change

Revenue (external) 1,202 1,206 0.3%

Operational expenses 682 693 1.6%

Restructuring costs 1 3 n.m.

EBITDA 526 517 (1.7)%

Capex (excl. spectrum) 133 193 45%

Data revenue & subscriber growth offset by voice ARPU erosionCapex reflects investments in HSPA network build

4

Wireless segment – Q3 2009 financial results

Prepaid 19%

Wireless subscribers

Postpaid 81%

Totalnet additions

6.4 million total

5.2M

1.2M

Postpaid additions stable at 131K and represented 105% of mix

Q3-081

149K

5

Wireless subscriber results

Q3-09

125K

1 Includes the impact from analogue network turndown of 27.6K subscribers.

Data

Q3-09

$59.45Voice

$64.14

Q3-08

6

Q3-09Q3-08

% of ARPU

Wireless ARPU

10.19

ARPU consistent with YTD trend down 7% due to voiceerosion partially offset by good data growth

20%16%

53.9547.40

12.05

84% 80%

Blended wireless ARPU trend

ARPU has been stable to slightly increasing YTD since significant drop in Q4-08

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09

$61.88 $62.73 $64.14 $62.16 $58.39 $58.61 $59.45

7

27% annualized data growth driven by continued smartphone adoption and to be enhanced by iPhone launch

8

Q3-08

$181M

Wireless data revenue

Q3-09

$229M

$116M

Q3-07BlackBerryTour

Q3-08 Q3-09 Change

Gross adds (000s) 447 420 (6)%

Churn1 1.68% 1.55% (13) bps

COA per gross add ($) 358 320 (11)%

COA expense ($M) 160 135 (16)%

Retention expense ($M) 99 117 18%

COA decrease due to lower marketing expenses and commissions Investments in retention focused on smartphones

9

Wireless marketing and retention

Note: Measurement of costs of acquisition and retention refined in 2009. Prior year comparisons restated.

1 Q3-08 includes impact from analogue network turndown of 27.6K subscribers, otherwise churn was 1.52%.

($M) Q3-08 Q3-09 Change

Revenue (external) 1,248 1,205 (3.4)%

Operational expenses1 823 804 (2.3)%


EBITDA 449 406 (9.6)%

Capital expenditures 340 365 7.4%

10

EBITDA impacted by restructuring and pension costsContinued higher capex to support broadband expansion

Wireline segment – Q3 2009 financial results

1 Excluding defined benefit pension expenses from both periods, operating expenses down 5.4%

($M) Q3-08 Q3-09 Change

EBITDA 449 406 (9.6)%Defined Benefit pension expense/(recovery) (23) 4

Restructuring costs 9 29

EBITDA normalized 435 439 0.9%

11

Wireline segment – EBITDA normalized

Underlying EBITDA up 1% when excludingDB pension expense and restructuring costs

1.2 million total

Internet subscribers

Dial-up8%

High-speed Internet net additions

Q3-08 Q3-09

1.1M

96K

13K 9K

12

High-speed92%

HSIA net adds improved sequentially but lower YoY

Internet subscribers

TELUS TV net additions1

Q3-08 Q3-09

12K

22K

13

Strong subscriber growth with net adds up 83%Total subscriber base up 117%

TELUS TV subscribers

Q3-08 Q3-09

63K

137K

TELUS TV subscribers1

1 Includes both TELUS IP TV and TELUS Satellite TV subscribers

14

4th consecutive quarter of YoY improved residential line loss Stabilizing due to effective winbacks and bundling efforts

Stabilized residential NAL losses

Q3-08 Q3-09

-53K

-41K-41K-41K

Q2-09Q1-09Q4-08

-42K

Q2-08

-48K

Q1-08

-51K

($M excluding EPS) Q3-08 Q3-09 Change

Revenue 2,450 2,411 (1.6)%

Operating expenses 1,465 1,456 (0.6)%


EBITDA 975 923 (5.3)%

EPS 0.89 0.88 (1.1)%

Capital Expenditures1 473 558 18%

Consolidated results impacted by economic softness and increased restructuring and pension costs

15

Consolidated – Q3 2009 financial results

1 Q3-08 capital expenditures exclude $882 million payment for AWS spectrum licenses otherwise capital expenditures down 59%.

($M) Q3-08 Q3-09 Change

EBITDA 975 923 (5.3)%

DB pension expense/(recovery) (25) 4

Restructuring costs 10 32

EBITDA (normalized) 960 959

16

Consolidated – EBITDA normalized

Normalized EBITDA flat when excludingDB pension expenses and restructuring

Q3-09

Investing in operational efficiency

Emphasis on operational efficiency initiatives driving increased restructuring costs

17

Q2-08 Q3-08 Q4-08 Q1-09

4 10

3828

Total restructuring costs ($M)

2008A 2009E*

approx. $160

59

Q2-09

53$113

* See forward looking statement caution

32

Expected

Actual

Exceeding YE target of >1500* reduction in domestic FTEs

YE 2008 Q3 2009 Change

Total (domestic)1 27,900 26,300 (1,600)

TELUS International 7,950 7,800 (150)

Black’s Photography 700 700

Total 35,850 34,800 (1,050)

Analysis of full time equivalent employees

* See forward looking statement caution 18

TELUS International reduction not necessarily indicative of full year trend

1 Total (domestic) excludes 700 FTEs from the Black’s Photography acquisition.

Dep’n and Amort

Q3-08 Reported

Lower shares o/s & lower

tax rates

Restr. costs

Pensioncosts

EPS up 7% excluding restructuring & pension costs and four cents of positive tax-related adjustments

Q3-09 Reported

19

$0.89

($0.05)

Other

$0.02 $0.88

$0.84Excl. Tax Adj.

$0.02 $0.02

EPS continuity

($M, excluding EPS) 2009 revised guidance*

Revenue $9,600 to $9,700

EBITDA1 $3,475 to $3,575

EPS (reported) $3.10 to $3.30

Capex approx. $2,100


Consolidated guidance update

1 Underlying EBITDA growth would be (2)% to flat adjusted for restructuring of $59M and approx. $160M in 2008 and 2009E respectively, and a $118M increase in 2009 defined benefit pension expense

Revised guidance reflects revisions to both wireless and wireline segments

Preliminary 2010E capex outlook ($B)

2006 – 2008average1

2009E*

$1.75

~$2.1

2010E*

Expecting 2010E capex to be as low as $1.7 billion returning to 2006 - 2008 average historical levels


1 2008 excludes payment for wireless spectrum.

Balancing interests of equity and debt holders Dividend maintained and moving to 3% discount on dividend reinvestment and

treasury share issuance CRTC’s Globalive foreign ownership and control decision

CRTC had no choice but to uphold federal law and clearly outlined the nature of Globalive’s considerable non-compliance

Globalive can restructure its affairs to remedy their situation Political interference is not appropriate to remedy situation, but in any event, any

possible Cabinet review should be a public process TELUS never against foreign ownership, just that rules should apply uniformly to

all communications companies in Canada Situation highlights need to pre-qualify bidders in future auctions as TELUS has

consistently advocated

22

Other developments

Darren EntwistlePresident & CEO

Joe NataleEVP & President, Consumer Solutions

Black’s Photography

24

In September, acquired 113 retail stores across Canada Most in premium mall locations 72% based in Ontario

Launched camera phone sales November 5

Addition of Black’s stores strengthensTELUS’ wireless distribution

TELUS to benefit from future global ecosystem, economies of scale and enhanced roaming revenues

25

TELUS launches Canada’s largest 3G+ network

HSPA network launched November 5 Provides service to more than 30 million CanadiansEnabling wireless applications with fast download speeds International roaming to more than 200 countriesClear strategic and competitive advantages

26

TELUS vs Rogers - HSPA east coverage

* Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change.

27

TELUS vs Rogers - HSPA west coverage

* Based on Rogers’ Sept. 14, 2009 public announcement of HSPA+ coverage within the cities indicated (using associated census metropolitan areas). ** Based on coverage maps made publicly available by Rogers on Oct. 23, 2009. Coverage areas are approximate as of October 2009. Actual coverage and network service can vary and are subject to change

TELUS launches iPhone 3GS

28

Running on Canada’s largest 3G+ network

TELUS launches BlackBerry Bold 9700


29

Full QWERTY keyboardEasy HTML browsing with

trackpad navigation 3.2 megapixel camera

TELUS’ a leader in smartphones

HTC Hero

NokiaE71


LG NewChocolate

30

Sierra 306 Internet Key

New Clear Choice™ suite of wireless consumer rate plansNew Clear and Simple™ business rate plansBased on feedback from CanadiansConsistent with TELUS’ future friendly brand promiseFewer and simpler rate plansNo SAF or carrier 911 feesGeneral rate plan increase of $5 with basic voicemail 3Expect loading, churn and cost efficiency benefits

31

TELUS’ simple and clear wireless pricing

Simplified rate plan structure supports focus on AMPU

Results and guidance impacted by recession, competitive intensity and introduction of new devices

Continued execution on operating cost efficiencyStrategic investments in broadband coming to fruition

Early launch of HSPA network and device offerings Acceleration of TELUS TV service

Leading change in wireless market for benefit of Canadians

32

Summary

Strategic project execution is significantly improvingTELUS’ operational and competitive position

Questions?

investor relations 1-800-667-4871telus.com [email protected]

2009Q3

2008Q3C$ millions

Appendix – free cash flow

EBITDA 975 923

Capex (473) (558)Net Employee Defined Benefit Plans Expense (Recovery) (25) 3Employer Contributions to Employee Defined Benefit Plans (27) (31)

Interest expense paid (includes income tax interest income) (43) (19)

Cash Income Taxes and Other (2) (48)

Non-cash portion of share-based compensation 12 5Restructuring payments (net of expense) (9) 3Donations and securitization fees included in other expense (5) (4)

Free Cash Flow (before share-based compensation payment) (479) 274Share Based Compensation Paid (3) (8)

Free Cash Flow (per current public guidance methodology) (482) 266Purchase of shares for cancellation (NCIB) (75) -

Dividends (Q2-08 dividend remitted June 30, 2008) - (149)

Acquisitions (includes proceeds from sale of property and other assets for Q3’08) 5 (26)

Working Capital and Other 9 (13)

Funds Available for debt redemption (543) 78A/R Securitization 100 -

Net Issuance (Repayment) of debt 433 (70)

Increase (Decrease) in cash (10) 834

Spectrum (882) -

~(415)

2009E

Net Cash Interest

$3,475 to 3,575EBITDA (after restructuring)

($M)

20Other

Free Cash Flow

1 see Free Cash flow definition on Appendix slide

~(2,100)Capex

$710 to 810

Appendix – 2009E Free cash flow

Net cash tax payment ~(270)

Cash pension contribution (in excess of expense) ~(175)

Free Cash Flow1 (pre-dividend payments) $535 to 635

Appendix - 2009E Free cash flow*

35* See forward looking statement caution

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, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, 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

Appendix – definitions

Documents

November 6, 2009