Group 1 - The article discusses the definition and classification of telecommunication services, which include basic telecommunication services and value-added telecommunication services [6][7][8][10]. - Basic telecommunication services involve voice call services and the leasing or selling of bandwidth and other network elements [9]. - Value-added telecommunication services encompass services such as SMS, MMS, data transmission, and internet access [11][12]. Group 2 - The article outlines the regulations regarding rental income as per the Corporate Income Tax Law, stating that rental income is recognized based on the payment date agreed upon in the contract [17][18]. - It specifies that if the rental agreement spans multiple years and the rent is paid in advance, the income can be recognized evenly over the rental period [18].

Financial Data and Key Metrics Changes - In Q3 2025, TELUS reported a net income of CAD 431 million, with an EPS of CAD 0.32, reflecting a 68% increase primarily due to a gain on the purchase of long-term debt [18] - Adjusted net income decreased by 10% to CAD 370 million, with an EPS of CAD 0.24, down 14% [18] - Free cash flow increased by 8% to CAD 611 million, driven by TELUS International EBITDA growth and lower capital expenditures [19] - Capital expenditure, excluding real estate, declined by CAD 16 million, or 2%, with capital intensity improving to 12% from 13% in the prior year [18][19] Business Line Data and Key Metrics Changes - TELUS Health achieved revenue and adjusted EBITDA growth of 18% and 24%, respectively, with a significant expansion in its global reach [6] - The mobile segment saw healthy phone net additions of 82,000 and connected device net additions of 169,000, supported by a focus on profitable customer growth [4] - Wireline services delivered an industry-best 40,000 internet net additions, continuing a 15-year track record of positive wireline net additions [5] Market Data and Key Metrics Changes - TELUS reported a total of 288,000 customer additions, reflecting a 5% growth in customer connections year-over-year [3][4] - The company maintained an industry-best post-paid mobile phone churn rate of 0.91%, marking the twelfth consecutive year below 1% [4] Company Strategy and Development Direction - TELUS is focused on operational excellence and the strategic rollout of TELUS Pure Fiber connectivity, enhancing customer experiences through AI-powered solutions [3] - The acquisition of TELUS Digital is expected to generate annualized cash synergies of CAD 150 million to CAD 200 million, enhancing digital and AI capabilities [8] - The company aims to achieve a leverage ratio of approximately three times by the end of 2027 while eliminating its discount dividend reinvestment plan [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained success driven by ongoing EBITDA expansion and disciplined capital deployment [11] - The company anticipates continued growth in TELUS Health, supported by strong sales bookings and improved customer experiences [56] - TELUS expects AI-enabling capabilities to drive significant revenue growth, projecting an increase from CAD 800 million in 2025 to approximately CAD 2 billion by 2028 [9][42] Other Important Information - TELUS increased its quarterly dividend by 4% to CAD 0.4184, reflecting a commitment to sustainable shareholder returns [11] - The company completed the acquisition of TELUS Digital, marking a significant milestone in its strategic evolution [8] Q&A Session Summary Question: Overview of ARPU growth and churn outlook - Management indicated that ARPU growth will depend on continued efforts in pricing and customer acquisition, with churn slightly increasing but still low [23][25] Question: Capital needs for Tereon - TELUS is looking to acquire towers and build new co-location towers, with cash flows from Tereon being net of capital expenditures [23][24] Question: Financial implications of partner build model - The partner build model is expected to have a margin profile similar to a wholesale model, with a focus on achieving better economic returns [29][30] Question: Revenue growth from sovereign AI - Revenue from sovereign AI is expected to manifest within TELUS Business Solutions and TELUS Digital, with additional guidance to be provided in February [46][47] Question: Health business outlook - Management sees strong organic growth in the health business, driven by improved sales bookings and customer experiences [55]

Core Viewpoint - The article emphasizes the importance of multiple complaint channels in protecting consumer rights, highlighting that while 12315 is a key resource, there are various other effective channels available for consumers to resolve issues more efficiently. Group 1: Importance of Diverse Complaint Channels - A single complaint channel may not meet all consumer needs due to the variety of issues encountered in daily life, thus a diversified approach offers significant advantages [1][4]. Group 2: Government Service Complaint Channels - The 12345 government service hotline serves as a comprehensive customer service platform, integrating various government hotlines for centralized processing and coordination [5]. - Industry-specific complaint channels are more effective for specialized issues, such as telecommunications, banking, and healthcare, allowing for professional handling of complaints [5]. Group 3: Third-Party Social Supervision Platforms - Black Cat Complaint platform exemplifies an effective third-party channel, offering a user-friendly interface, efficient response mechanisms, and transparent processing of complaints [3][2]. - The platform's features include a simplified complaint submission process, a robust enterprise response system, and real-time tracking of complaint status [3]. Group 4: Guidelines for Channel Selection - For complex issues, a multi-channel strategy is recommended, ensuring that consumers prepare adequate evidence and maintain a rational communication approach [8]. - Specific channels are suggested based on the nature of the complaint, such as prioritizing third-party platforms for internet service disputes and using industry-specific departments for specialized issues [9]. Group 5: Effective Use of Complaint Channels - Utilizing third-party platforms can lead to quicker responses, while industry channels provide specialized handling, and government channels ensure authoritative support [11]. - Consumers are advised to monitor the progress of their complaints and follow up appropriately while allowing sufficient time for resolution [10].

Financial Data and Key Metrics Changes - Total revenue increased by 1.3%, driven by the acquisition of Ziply Fiber [14] - Adjusted EBITDA rose by 1.5%, leading to a margin increase of 10 basis points to 45.7%, the strongest result in over 30 years [14] - Net earnings and statutory EPS saw significant increases, largely due to a $5.2 billion gain from the sale of a minority stake in MLSE [15] - Free cash flow increased by $171 million in Q3, supported by lower CapEx and higher cash from working capital [15] Business Line Data and Key Metrics Changes - Internet revenue grew by 2%, with strong performance in fiber driving subscriber growth [16] - Wireless service revenue declined modestly by 0.4%, while post-paid churn improved by 15 basis points [9][16] - AI-powered solutions revenue grew by 34% year-over-year, indicating strong demand and validation of the company's strategy [11][16] Market Data and Key Metrics Changes - In the U.S. market, Ziply Fiber's revenue reached $160 million, with a 15% year-over-year growth in internet revenue [17][18] - The Canadian wireless environment has stabilized, with expectations for continued improvement [9] Company Strategy and Development Direction - The company unveiled a three-year strategic plan focusing on four priorities: customer service, network delivery, AI-powered solutions, and digital media [4][10] - The strategy includes leveraging unique assets in fiber, wireless, media, and enterprise to drive efficiencies and sustainable free cash flow growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive impact of the federal budget on investment in the Canadian economy [27] - The company is well-positioned for growth amid rising global instability and technological advancements [10] - Management anticipates strong EBITDA growth for Bell CTS U.S. in line with the three-year plan [19] Other Important Information - The company plans to increase product intensity by approximately 25% over the next three years, with a focus on content bundling [8] - The partnership with AST SpaceMobile aims to enhance network reliability and expand service reach [9] Q&A Session Summary Question: Can you help us unpack the federal budget a bit? - Management noted that the budget is positive for investment in the Canadian economy and encourages companies to invest [27] Question: Can you provide an update on the internet competitive landscape? - Management emphasized a twofold approach: protecting retail positions in the east and enhancing services in the west, with a full launch of fiber resale expected in January [35] Question: Do you expect margin growth in the Canadian telecom business between 2026 and 2028? - Management indicated a focus on operating cost reduction and expects relatively flat margins over time [39] Question: Can you provide more details on the AI Fabric and its expected financials? - Management highlighted a strong pipeline of demand and expects significant growth from AI Fabric in the coming months [42] Question: What kind of competition is faced in the enterprise market for AI-powered solutions? - Management stated that the company is unique in its offering, combining network security with AI automation, which sets it apart from competitors [76]

Financial Data and Key Metrics Changes - Total revenue increased by 1.3%, driven by the acquisition of Ziply Fiber [13] - Adjusted EBITDA rose by 1.5%, leading to a margin increase of 10 basis points to 45.7%, the strongest result in over 30 years [13] - Net earnings and statutory EPS saw significant increases, largely due to a $5.2 billion gain from the sale of a minority stake in MLSE [14] - Adjusted EPS increased by 5.3%, supported by higher EBITDA [14] - Free cash flow increased by $171 million in Q3, driven by lower CapEx and higher cash from working capital [14] Business Line Data and Key Metrics Changes - Internet revenue in Canada grew by 2%, supported by fiber [15] - Wireless service revenue declined modestly by 0.4%, while post-paid churn improved by 15 basis points [8][15] - AI-powered solutions revenue grew by 34% year-over-year, indicating strong demand [10][15] - Ziply Fiber's total revenue reached $160 million, with a 15% year-over-year growth in internet revenue [16] Market Data and Key Metrics Changes - The Canadian wireless environment has stabilized, with expectations for continued stability [7] - The partnership with AST SpaceMobile aims to enhance network reach in challenging geographical areas, with an initial service launch scheduled for late 2026 [8] - Ziply Fiber's network currently passes 1.4 million homes, with plans to reach approximately 3 million by the end of 2028 [6] Company Strategy and Development Direction - The company unveiled a three-year strategic plan focusing on four priorities: fiber, wireless, media, and enterprise [3] - A renewed focus on customer service has led to significant reductions in post-paid churn [4] - The company aims to increase product intensity by approximately 25% over the next three years [7] - The digital media and content strategy includes new streaming bundles and partnerships to enhance advertising opportunities [12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the growth potential of AI-powered solutions, with a strong pipeline of interest [10] - The Canadian economy is changing, and the company is well-positioned for growth amid rising global instability [9] - Management remains focused on reducing leverage and maintaining a healthy balance sheet, with a net debt leverage ratio of approximately 3.8 times adjusted EBITDA [20] Other Important Information - The company anticipates a year-over-year increase in overall spending in Q4 as Ziply Fiber executes its fiber buildout [14] - The balance sheet remains healthy, with $3.6 billion of available liquidity and a pension solvency surplus of $4.5 billion [20] Q&A Session Summary Question: Can you help us unpack the federal budget a bit? - Management noted that the budget includes initiatives to spur investment in the Canadian economy, which is viewed positively [26] Question: Can you provide an update on the competitive landscape in Eastern Canada? - Management emphasized a twofold approach: protecting Bell's retail position and driving higher fiber network penetration [36] Question: Do you expect margin growth in the Canadian telecom business between 2026 and 2028? - Management indicated a focus on operating cost reduction and expects flat margins with potential for dollar growth [39] Question: Can you provide an update on the $1.5 billion cost savings initiative? - Management confirmed they are halfway through the initiative and expect continued acceleration in cost savings [58] Question: What is the competitive landscape for AI-powered solutions? - Management stated that the company is uniquely positioned with integrated offerings in AI, cybersecurity, and automation [72]

Investment Rating - The report gives a "Recommended" rating for the telecommunications industry, considering the sustained high prosperity of the sector driven by AI, 5.5G, and satellite communications [2][6]. Core Insights - The overall market performance for the week (October 27 to November 2, 2025) saw the Shanghai Composite Index rise by 0.11%, the Shenzhen Component Index by 0.67%, and the ChiNext Index by 0.50%. However, the telecommunications sector experienced a decline of 3.59% [2][12]. - Among the sub-sectors, communication terminals and accessories had the highest increase at 3.26%, while communication network equipment and devices faced the largest decline at 6.40% [2][14]. - Notable individual stock performances included GuoDun Quantum with a rise of 38.42%, followed by LianTe Technology at 20.65%, and ST LuTong at 13.68% [2][16]. Summary by Sections Weekly Market Overview - The telecommunications industry index declined by 3.59% during the week [12]. - The highest gain among sub-sectors was in communication terminals and accessories, which rose by 3.26%, while communication network equipment and devices fell by 6.40% [14][15]. - The overall performance of stocks in the telecommunications sector showed 35.20% increased, 52.00% decreased, and 12.80% remained flat [16]. Q3 Active Equity Fund Holdings - The market value proportion of active equity funds in the telecommunications sector increased to 8.05%, a rise of 2.8 percentage points from the previous quarter [18]. - Key areas of increased investment included optical transmission and other infrastructure related to computing power [22]. Industry News - IoT Analytics reported that the number of active IoT devices globally is expected to reach 21.1 billion by the end of 2025, driven by Wi-Fi, Bluetooth, and cellular technologies [24]. Company Announcements - Key announcements from the telecommunications sector for the week included quarterly reports from various companies, with significant revenue and profit changes noted [26].

Core Viewpoint - Morgan Stanley's report indicates that Hong Kong Broadband's (01310) annual service revenue increased by 13% year-on-year, surpassing Morgan Stanley's expectation of 8.4% due to a rise in IDD revenue by HKD 360 million and a 14% increase in SI revenue [1] Financial Performance - Adjusted EBITDA met Morgan Stanley's expectations, while adjusted free cash flow grew by 11% to HKD 551 million, exceeding Morgan Stanley's forecast by 8% due to lower interest costs [1] - The company recently completed a debt refinancing of HKD 10.7 billion, which will incur a one-time cost of HKD 140 million, but is expected to lower interest expenses [1] Investment Outlook - Morgan Stanley set a target price of HKD 6.5 for Hong Kong Broadband, maintaining a "Market Perform" rating [1]

Core Viewpoint - Hong Kong Broadband (01310) has seen a nearly 3% increase in stock price, attributed to recent financial developments including a significant loan acquisition and positive revenue growth [1] Financial Developments - Hong Kong Broadband's subsidiary has secured a total of HKD 10.75 billion in term loan financing [1] - The company has completed a debt refinancing of HKD 10.7 billion, which will incur a one-time cost of HKD 140 million, but is expected to lower interest expenses [1] Revenue and Earnings Performance - The company's annual service revenue has grown by 13% year-on-year, surpassing Morgan Stanley's forecast of 8.4%, primarily driven by an increase of HKD 360 million in IDD revenue [1] - SI revenue has also increased by 14% year-on-year [1] - Adjusted EBITDA aligns with Morgan Stanley's expectations, while adjusted free cash flow has risen by 11% to HKD 551 million, exceeding Morgan Stanley's forecast by 8% due to reduced interest costs [1]

Core Viewpoint - Hong Kong Broadband (01310) shares rose over 6%, currently trading at 7.23 HKD, with a transaction volume of 62.16 million HKD, following the announcement of a financing agreement for a total of 10.75 billion HKD [1] Financing Agreement - The company announced a financing agreement involving several wholly-owned subsidiaries as borrowers and the company along with other subsidiaries as guarantors, with a total amount of 10.75 billion HKD [1] - The financing is set to mature 364 days after the first drawdown, with the option for the company to extend the maturity date twice for 24 months each, subject to certain conditions without needing lender consent [1]

Core Points - Hong Kong Broadband (01310) announced a financing agreement for a total of HKD 10.75 billion [1] - The financing will mature 364 days after the first drawdown, with the option to extend the maturity date for two additional 24-month periods without lender consent, subject to certain conditions [1] Summary by Category Financing Details - The financing agreement involves several wholly-owned subsidiaries of the company as borrowers and the company along with other subsidiaries as guarantors [1] - The total amount of the financing is HKD 10.75 billion [1] - The maturity date is set for 364 days after the first drawdown, with two options to extend for 24 months each [1] Conditions and Terms - The company has the right to extend the maturity date twice, contingent upon meeting certain conditions, without needing consent from the lenders [1]