How a CA$2 Billion Fibre Investment at TELUS (TSX:T) Has Changed Its Investment Story

• Earlier this month, TELUS announced a CA$2 billion investment to expand its fibre-optic broadband infrastructure across Ontario and Quebec, aiming to accelerate connectivity and network reliability following regulatory confirmation of a new wholesale framework.
• This latest initiative is intended to serve as the digital backbone for both broadband and 5G wireless services, underlining TELUS' long-term focus on sustainable growth, energy efficiency, and national-scale digital transformation.
• We’ll examine how TELUS’ substantial infrastructure investment could reinforce its efforts to boost long-term growth and improve service quality.

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TELUS Investment Narrative Recap

To be a TELUS shareholder, an investor needs to believe in the long-term value of large-scale infrastructure expansion and its potential to drive consistent service improvements and sustainable growth. The CA$2 billion broadband investment aligns with this vision and supports a key near-term catalyst, retaining and attracting customers through network reliability, though concerns remain around elevated debt levels as a key risk for financial flexibility in the short term. Among recent announcements, TELUS' approval to deploy a submarine fibre optic cable between Sept-Îles and the Gaspé Peninsula ties directly to its broader fibre strategy, enhancing network resilience and redundancy. This project further supports ongoing customer retention and growth initiatives, reinforcing the importance of connectivity as a fundamental business driver. However, despite these expansion efforts, higher financing costs and leverage remain risks investors should be aware of, especially if...

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

TELUS' outlook anticipates CA$22.1 billion in revenue and CA$2.0 billion in earnings by 2028. This assumes annual revenue growth of 3.2% and a CA$1.0 billion increase in earnings from the current CA$993.0 million.

Uncover how TELUS' forecasts yield a CA$22.78 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community member fair value estimates for TELUS range widely from CA$18.74 to CA$58.71, across six perspectives. While you weigh these different outlooks, consider how ongoing debt reduction targets could affect TELUS' ability to invest in future growth and maintain financial health.

Explore 6 other fair value estimates on TELUS - why the stock might be worth over 2x more 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 2 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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