Q3 2010 TELUSinvestor conference call

Robert McFarlaneEVP & Chief Financial Officer

Darren EntwistlePresident & Chief Executive Officer

Joe NataleEVP & Chief Commercial Officer

November 5, 2010

2TELUS forward looking statements

Today's presentation and answers to questions contain statements about expected future events and financial and operating performance of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2010 guidance), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 first, second and third quarter reports. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

3agenda

Wireless and wireline segment reviews

Consolidated financial review Updates

Regulatory IFRS Financing Dividend 2010 guidance

Question and answers

3

Q3 2010 wireless financial results 4

Wireless cash flow up significantly due to lower capex and EBITDA increase despite record subscriber loads

($M) Q3-09 Q3-10 change

Revenue (external) 1,206 1,282 6.3%

EBITDA 517 535 3.5%

EBITDA margins* (total revenue)

42.6% 41.5% (1.1) pts

Capex 193 113 (41)%

EBITDA less capex 324 422 30%

* Margins on network revenue in Q3/10 and Q3/09 are 45.1% and 45.9%, respectively.

subscriber results 5

Strong total net adds growth of 22% y/y with higher value postpaid representing 86% of net adds

prepaid18%

Wireless subscribers

postpaid82%

Postpaidnet adds

6.9M total

5.6M

1.3M

Q3-09

131K 132K

Q3-10

Totalnet adds

Q3-09

125K

153K

Q3-10

smartphone subscriber mix 6

Smartphone base increased 67% y/y to 1.6M and to be enhanced with suite of new exciting HSPA devices

Smartphone subs represent 28% of postpaid base compared to 18% a year ago

In Q3, 38% of all postpaid gross additions were on smartphones compared to 22% a year ago

BlackBerries and iPhones continue to dominate retention loading

HTC 7 Surround Samsung Galaxy Fascinate

LG Optimus 7

data revenue 7

Strong data growth of 29% driven by continued smartphone adoption

Q3-09

$226M

Q3-10

$291M

$178M

Q3-08BlackBerry Torch

marketing and retention 8

Record gross additions and stable churn reflect availability of new HSPA handsets and continued marketing success

Q3-09 Q3-10 change

Gross adds (000s) 420 466 11%

Churn 1.55% 1.54% (0.01) pts

COA per gross add $320 $339 5.9%

COA expense $135M $158M 17%

Retention expense $116M $127M 9.5%

blended ARPU analysis 9

Strong data growth continuing to help improve trend in overall ARPU down 1.2% y/y vs. 1.9% in Q2

Data

Q3-10

$58.75Voice

$59.45

Q3-09

% of ARPU

12.05

47.40 44.22

14.53

Q3-10Q3-09

20%

80% 75%

25%

Q3 2010 wireline financial results 10

Revenue decline slows and is offset by expense control and lower restructuring costs

($M) Q3-09 Q3-10 Change

Revenue (external) 1,205 1,173 (2.7)%

Operational expenses 804 795 (1.1)%

Restructuring costs 29 15 (48)%

EBITDA 406 402 (1)%

EBITDA margins(total revenue)

32.8% 33.2% 0.4 pts

Capex 365 336 (7.9)%

EBITDA less capex 41 66 61%

wireline data strategy reinforced 11

Wireline data revenue exceeds local & LD revenue for first time ever

Q3-2000 Q3-2010

78%Local &

LD

22%Data

49%Local &

LD

51%Data

$1,109M$1,165M

TELUS TV subscribers 12

Strong TV loading reflects June launch of Optik TV brand Net adds up 73% y/y and total TV subscribers up 94%

Q3-09

22K

38K

Q3-10

TELUS TV net additions*

TELUS TV subscribers*

* Includes both TELUS IP TV and TELUS Satellite TV subscribers

Q3-10Q3-09

137K

266K

improved wireline operating stats 13

Growth in TV & increased HSIA this quarter greater than NAL declines

Q3-10

-56K

Q3-09

* Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction.

31K

-51K

53KTELUS TV loading and HSIA

Total NAL losses*

Q3 2010 consolidated financial results 14

Strong cash flow expansion driven by improved profitability and capex decline

($M excl. EPS) Q3-09 Q3-10 change

Revenue (external) 2,411 2,455 1.8%

Operating expenses 1,456 1,501 3.1%

Restructuring costs 32 17 (47)%

EBITDA 923 937 1.5%

EPS (basic) 0.88 0.77 (13)%

Capex 558 449 (20)%

Free cash flow 266 339 27%

EPS continuity ($) 15

Reported EPS negatively impacted by debt redemption costs related to successful debt issue

0.88

0.84Excl. Tax Adj.

Q3-09 reported

Normalized EBITDA1

Restr.costs

Normalized Financing

costs2

Pension, Dep & Amort

1 Normalized EBITDA excludes restructuring and pension costs.2 Q3 Normalized Financing excludes early debt redemption penalty, CRTC deferral account Interest, and excludes interest income for Q3/09 identified in Q3/09 tax adjustment

Q3-10 reported

0.77

- 0.12 - 0.03

Lower tax rates &

other

+ 0.01

0.74Excl. Tax Adj.

+ 0.03 + 0.02

Tax adjustment

2010 debt redemption

- 0.02

CRTC Deferral

Acc’t charge

+ 0.01

EPS normalization 16

Normalized EPS up 6% to $0.89 per share

  Q3-09 Q3-10 Change

EPS - basic $0.88 $0.77 (13)%

Early debt redemption + 0.12

Deferral Acc’t Interest + 0.03

Income-tax related adjs (0.04) (0.03)

EPS normalized $0.84 $0.89 6.0%

TELUS’ strategy is to aggregate, integrate and make accessible content and applications for customers’ enjoyment

Not necessary to own content to make it accessible to customers on economically attractive basis

Not clear to TELUS that synergies of ownership for carriers outweigh negative synergies of limiting audience through exclusives and impact on other supplier relationship

Caution warranted based on past transactions, execution risk related to different expertise requirement, and legacy nature of content assets in play

TELUS’ vertical integration strategy

Consistent with our strategy to “unleash the power of the Internet to Canadians at home, in workplace and on the move”

17

TELUS pleased with CRTC’s Shaw / Canwest decision to support the pre-existing principle of programming content non- exclusivity on reasonable commercial terms

Public policy hearing called for May 2011 on effects of consolidation and vertical integration in Canadian broadcasting industry

TELUS believes CRTC needs regulatory tools and measures to effectively address and deter any anti-competitive behaviour

Industry vertical integration update

CRTC’s Shaw / Canwest decision reinforces pre-exisitng principle that consumers need protection from undue preference by carriers who own content

18

TELUS update on Cdn GAAP to IFRS transition 19

Comprehensive IFRS disclosure in section 8.2 of Q3-10 MD&A

Quantified impacts on key financial statement line items and other measures in Q3-10 MD&A including

Pro forma Q3-10 YTD net income and EPS per IFRS higher by $15M or $0.05

Statement of Financial Position (i.e. Balance Sheet) impacts including recognition of cumulative unamortized gains and losses for employee defined benefit plans and asset impairment reversal are set out

Net impact of $220M or 3% reduction in Owners’ Equity

2011 guidance in mid-December to be provided according to IFRS

TELUS well prepared for IFRS conversion as outlined in comprehensive disclosure in section 8.2 of MD&A

TELUS financing update 20

In August, TELUS cancelled its unused $300M, 364-day revolving credit facility set to expire December 31, 2010

Available liquidity of $1.7B exceeds $1B objective

In September, TELUS successfully completed its early partial redemption of notes due in June 2011 following successful $1B 5.05%10-year debt issue in July

Redeemed US$607M of 8% US$1.3615B notes due June 2011

As expected, recorded pre-tax charge of $52M or after-tax impact of $37M or 12 cents per share

Average maturity of long-term debt 5.9 years at end of Q3-10, up from 4.0 years a year ago

Another very successful debt refinancing, lowering future interest rate expense by circa 350 bps

TELUS raises dividend

Based on management confidence in mid-term outlook Quarterly dividend increased 5% to $0.525 per share for

January 4, 2011 (from $0.50 cents) Second dividend increase in 2010 and reflects 11% increase

over January 2010 dividend payment TELUS to change dividend reinvestment program to open

market purchases at full price Dividend reinvestment program (DRIP) to purchase

shares on open market rather than issue from treasury Will no longer offer 3% discount from avg. market price Changes come into effect March 1, 2011 after dividend

payment on January 4, 2011

Dividend increase of 5% reflects our confidence in prospect for continued future earnings and free cash flow growth

21

2010 annual guidance* update 22

2010 earnings guidance increased on raised wireless EBITDA

Consolidated 2010 guidance change y/y growth

Revenue(external)

$9.7 to 9.95B no change 1 to 4%

EBITDA $3.6 to 3.7Bup $100M on

low end3 to 6%

EPS – basic 1 $3.10 to 3.30up $0.20 on

low end(1) to 5%

Capex Approx. $1.7B no change (19)%

1 Normalized EPS y/y growth of 9 to 16%. See appendix. * See forward looking statement caution

Q3 2010 summary 23

Good Q3 results build on positive momentum

Wireless Strong wireless subscriber growth and stable churn ARPU trend continuing to improve Continued revenue and EBITDA growth despite record

loading activity Wireline

Record TELUS TV subscriber growth Improved residential and business NAL losses and

HSIA loading Cost control offsetting continued legacy declines

Dividend increased by 5% Positive changes to 2010 earnings guidance

appendix – free cash flow

2010Q3

2009Q3

C$ millions

EBITDA 923 937

Capex (558) (449)

Net Employee Defined Benefit Plans Expense (Recovery) 3 7

Employer Contributions to Employee Defined Benefit Plans (31) (21)

Interest expense paid (includes income tax interest income) (19) (106)

Cash Income Taxes and Other (48) (30)

Non-cash portion of share-based compensation 5 10

Restructuring payments (net of expense) 3 5

Donations and securitization fees included in other expense (4) (7)

Free Cash Flow (before share-based compensation payment) 274 346

Share Based Compensation Paid (8) (7)

Free Cash Flow (per current public guidance methodology) 266 339

(149) (162)Dividends

Working Capital and Other (13) 120

Funds Available for debt redemption 78 348

A/R Securitization

Net Issuance (Repayment) of debt (70) (339)

Increase (Decrease) in cash 8 9

Issuance of non-voting shares* - 46

* Non-voting share issuance from treasury for shareholders in the DRIP

-

Issuance of common shares - 5

Proceeds from sale of property and other assets (acquisitions) (26) -

-

appendix – definitions

TELUS definitions for non-GAAP measures

EBITDA: earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization

Capital intensity: capital expenditures divided by total revenue

Cash flow: EBITDA less capex

Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees

Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue

EPS normalized: growth rates are based on 2010 expected EPS ($3.10 to $3.30) compared with 2009 actual results when excluding 52 cents of positive income tax-related adjustments and a 22 cent loss on early partial redemption of long-term debt