FreeTelecom Dual Plan Launch Could Be a Game Changer for TELUS (TSX:T)

• On August 27, 2025, FreeTelecom announced it has partnered with TELUS to introduce the FreeTelecom Dual Plan, allowing users to access both Korean and Canadian mobile services on one device, with unique features such as Korean banking authentication and cross-border convenience.
• This collaboration marks FreeTelecom's entry into the global market and offers differentiated benefits for Korean expatriates, students, business travelers, and residents in Canada.
• We'll now explore how this international partnership could reshape TELUS's growth outlook by expanding its cross-border service offerings.

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TELUS Investment Narrative Recap

TELUS shareholders need conviction in the company’s ability to grow recurring revenues and offset margin pressures through expanding connectivity and digital offerings. The FreeTelecom partnership could support this goal by unlocking new service revenue from cross-border users, but its effect on reversing ongoing ARPU declines, which remain the key risk for the business, may not be immediately material given the niche focus of the offering.

Among several recent moves, TELUS’s announcement of a 7% dividend increase on August 1 stands out. This upward adjustment highlights management’s ongoing commitment to shareholder returns, even as competition and capital intensity pose near-term challenges to cash flow and earnings growth.

By contrast, ongoing ARPU pressure from increased competition and price cuts remains a critical detail that investors should not overlook, especially as...

Read the full narrative on TELUS (it's free!)

TELUS' outlook projects CA$22.7 billion in revenue and CA$1.5 billion in earnings by 2028. This assumes a 3.6% annual revenue growth rate and an increase in earnings of approximately CA$534 million from the current CA$966.0 million.

Uncover how TELUS' forecasts yield a CA$23.38 fair value, in line with its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community suggested fair values for TELUS ranging from CA$18.58 to CA$59.57. While opinions differ widely, the persistent risk of ARPU decline across the sector means it is essential to weigh both optimism and caution when assessing future performance.

Explore 7 other fair value estimates on TELUS - why the stock might be worth 19% less than the current price!

Build Your Own TELUS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TELUS research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free TELUS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TELUS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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