Vancouver-based national operator Telus had 87,000 net mobile phone additions in the fourth quarter of 2020, compared to 70,000 reported in the fourth quarter of 2019.
Telus added a total of 253,000 new wireless, internet, TV and security customers in the quarter, according to to the report. This includes the 87,000 additions to the mobile phone network, 88,000 connected mobile devices, 44,000 Internet, 20,000 TV, and 23,000 security clients.
For context, connected devices are any device other than a mobile phone with its own SIM or IMEI number. These data-centric devices include tablets, internet keys, internet of things, wearable devices, and connected car systems.
“Our total wireless subscriber base of 10.7 million has increased by 5.2% in the last twelve months, reflecting a 2.5% increase in our mobile phone subscriber base to approximately 9 million, and a 21% increase in our connected mobile device subscriber base to approximately 1.8 million. “the carrier described in the report.
The operator’s mobile phone ABPU (average billing per unit) for the quarter was $ 70.07, reflecting a 3.7 percent decrease from the same period a year ago.
Telus notes that this decline reflects the impacts caused by the COVID-19 pandemic, including reduced roaming revenue, the temporary closure of about 90 percent of its stores, and a decrease in data usage charged to as people continue to download their mobile devices on Wi-Fi. networks.
“The mobile phone ABPU was also affected by the impact of the competitive environment that put pressure on the prices of the base rate plan in the current period and in the previous one,” the report states.
“The decrease in mobile phone ABPU was partially offset by growth resulting from our combined financing of Telus Easy Payment devices, Peace of Mind endless data plans and discount offers for the Telus family, with customers selecting plans with infinite data or bigger data repositories and higher value smartphones in the sales mix. “
Telus reported an ARPU (average revenue per unit) of mobile phones of $ 57.29, which is a decrease of five percent from the fourth quarter of 2019. The operator says that mobile ARPU was affected by the same reasons that affected ABPU .
The mobile phone abandonment rate was 1.09 percent, compared to the 1.20 percent reported in the same period a year ago. The churn rate is the percentage of subscribers who suspend their subscriptions in one month.
The airline says this reflects the impacts of changing customer behavior due to travel restrictions and reduced shopping habits at points of sale.
Telus’ net income for the quarter was $ 271 million, a decrease of 28.5 percent from the $ 379 million reported in the same period a year ago.
Its external wireless operating income and other income decreased by $ 42 million or 1.9 percent. Telus says this was due to lower network revenue and lower equipment revenue.