Telus Corp. gained 41,000 customers for its satellite and Optik IPTV (News - Alert) service for the fourth quarter of 2012. Although this is fewer than the 56,000 customers added in the final quarter of 2011, Telus' total subscriber base is 33 percent greater than the previous year.
Vancouver, BC-based Telus provides communications technology and services for Western Canada. Mobile device solutions, business support, call center outsourcing and healthcare are a few of the services the company provides in addition to its television and Internet packages.
Telus' gain in customers is the result of an aggressive campaign with promotional offers designed to take market share away from its chief rival, Shaw Communications (News - Alert), in the BC and Alberta industries. Telus has been able to beat Shaw on price with its Optik service. A comprehensive technology upgrade program, started in 2010 and expected to last 10 years, marked the beginning of Telus’ attempts to compete against Shaw.
Shaw does have an advantage when it comes to Internet service. They invested heavily in upgrades, allowing them to provide faster speeds than Telus can, but Telus has continued to eat away at Shaw's market share.
In a September 2012 article in Canada's Globe and Mail, Canaccord Genuity analyst Dval Ghose summed up Telus' furious gains in market share:
“So, really, in sort of a year-and-a-half, they’ve gone from negligible to 20 per cent market share (in Alberta and B.C.).”
Telus’ success has been duplicated in Eastern Canada by BCE, which is taking market share away from giants like Rogers Communications (News - Alert) and Videotron. Like Telus, BCE has invested in technology upgrades throughout its system, albeit less aggressively.
In spite of their best efforts to stop the bleeding, the giants of the Canadian cable and Internet industry have failed to come up with an answer to upstarts like Telus and BCE (News - Alert). The market has changed; doing business the way you always have is not going to work. Customers are no different in Canada than in many other places: they want better service and pricing and the latest technology.
Until Shaw, Rogers and Videotron (News - Alert) change their ways, they’ll continue losing market share.
Edited by Braden Becker