Stock Watch – Telus will spend a total of $1.1b over three years in Ontario to upgrade wireless and fibre optic communications infrastructure.
Canadian telco Telus Corp (TSE:T, Mkt cap 25.12B, P/E 20.18, Div/yield 0.38/3.75, EPS 2.01, Shares 619.94M) will channel an additional $600 million into the roll-out of new infrastructure and wireless technology in Ontario over the next two years, the company has announced.
The amount adds to the $500 million investment that the company will make in the wireless communications infrastructure of the province this year under a three-year plan introduced in 2012. The money earmarked for 2015 and 2016 will be used to provide fibre optic communications infrastructure for regional business clients and advanced healthcare solutions for consumers, as well as to improve access to cloud computing data centre services and wireless technology across local communities.
The company’s 4G LTE service already covers over 85% of Ontario’s population and its plans foresee deployment of the 700 MHz spectrum to extend its reach and boost speeds across the province. Telus will also seek to facilitate access to its healthcare solutions, which are currently used by more than 12,500 physicians in the country and support over 45 million patient interactions a year.
The combined $1.1 billion investment will expand the company’s infrastructure to sustain innovation and economic success in communities in the province, Telus executive chairman Darren Entwistle commented. The amount will bring the company’s total investment in operations and infrastructure throughout Ontario to over $36 billion, he said.
Entwistle noted that since 2000 Telus has remitted more than $1.65 billion in income, payroll, property, sales and other taxes to provincial and municipal authorities in Ontario.
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