Dominant local market shares; incumbent position in western Canada and eastern Quebec Good diversification of service offerings Strong subscriber and revenue growth in wireless and residential Internet businesses Strong free cash flows, which supported debt reduction in the past two years Increased competition for local services from cable and other voice over Internet protocol providers Non-incumbent local exchange carrier business remains cash flow negative Uncertainty regarding ongoing strike with the Telecommunications Workers Union The ratings on Telus Corp., Canada's second-largest, diversified telecommunications provider, are driven by the company's average financial risk profile characterized by moderate leverage and cash flow protection measures. In addition, the ratings are underpinned by the company's strong business profile given the company's large and expanding nationwide
