Second-largest telecom provider in Canada, servicing more than 13 million customer connections Solid market position in wireless (No. 3), which comprises more than 55% of revenue, and leading fixed-line provider in western Canada and eastern Quebec Strong franchise with solid brands, broad distribution, and quad-play capability Track record of above-average profitability and growth in wireless Mature market for its services amid strong competition Secular pressure from technological substitution for voice, legacy data, and traditional video Strong cash-generating ability from well-established operations Historically moderate and well-articulated financial policies Strategic investments (spectrum and network upgrades) in recent years have increased leverage beyond its public target High dividend payout and appetite for aggressive shareholder distributions High capital intensity of the industry, including lumpy
