Satisfied with its lead in new wireless subscribers, Telus doesn’t expect to launch another discount brand or get involved in the chase for more low-end cellphone users.
Chief financial officer Robert McFarlane called it a limited coverage, discount market that can attract the “credit challenged” and doesn’t sell iPhones or “fancy” smartphones.
“It doesn’t make sense to us to be reactive,” McFarlane said Friday from Vancouver.
Rogers has launched its new discount brand Chatr with unlimited talk and text plans in addition to its Fido service. Bell said it’s relaunching its Solo brand this month to compete with Rogers and other new cellphone players.
Telus launched discount brand Koodo Mobile in 2008.
New players Wind Mobile, Mobilicity and Public Mobile also offer no contract, unlimited talk and text monthly plans.
“They haven’t been adversely affecting us,” McFarlane said of the new cellphone companies.
“We’ve had great wireless results,” he said after Telus reported that its net income rose 21% with a profit of $295 million in its latest quarter.
Telus reported that it added 124,000 net new wireless subscribers in its second quarter, mostly with the help of new smartphone users who surf the Internet and send e-mail.
Bell reported 98,459 new subscribers for its second quarter, while Rogers reported net subscriber additions of 119,000 in the quarter.
McFarlane said its smartphone users who have data-driven devices like iPhones, BlackBerrys and Google-powered Android devices increased by 15% to 109,000 in the quarter.
Telus’s second-quarter profit amounted to 92 cents per share, up from $243 million or 77 cents per share in the comparable period last year. Operating revenues rose to $2.39 billion from $2.38 billion.
Telus said it now has 6.7 million wireless subscribers, while average revenue per user slipped 1.9% to $57.47.
Revenue from wireless data, which includes video streaming, increased by $57 million in the quarter or 26% year-over-year to reach $273 million.
“Data now represents 24% of network revenue,” McFarlane said.
