Leading Canadian telecom company, TELUS Corporation (TU - Analyst Report), announced on last Tuesday morning that it would offer walkie-talkie voice communication service through TELUS Link, a next generation Push To Talk (PTT) service to its customers, beginning mid-October. The service is designed for prompt communication with an individual or a group of people. Customers can also avail Telus’ PTT over Wi-Fi to connect while traveling in the U.S. or worldwide.
We believe the new service and product will lead to growth at Telus’ wireless segment, leading to substantial revenue growth. Despite being a positive announcement, the company stock price did not show much of a movement but closed slightly up (0.73%) on Tuesday trading compared to its opening price.
In an effort to expand its wireless business, last month the company announced its expansion into health care technology with investments in a heath care based software providing company, Get Real Health. To support innovative and advanced products and services, the company relies over its network infrastructure, which is popular in the Canadian market.
Telus is leading the Canadian industry in the deployment of the three fastest wireless networks — high-speed packet access plus (HSPA+), HSPA+ Dual and Long Term Evolution (LTE). The advanced wireless network is complemented by modern handsets and wireless devices, which include the fourth generation iPad of Apple Inc. (AAPL - Analyst Report) and the iPad mini. Further, the company is expanding Internet data centers to support its cloud computing services.
On the wireline front, Telus’ ongoing investment in expansion of its fiber-optic network provides compelling home entertainment services in the west Canadian market. The company continues to add new features as well as upgrade the existing features of its Optik TV and Optik High-Speed Internet broadband services that are gaining strong traction across British Columbia, Alberta and Eastern Quebec.
Telus, which operates with other Canadian peers – BCE, Inc. (BCE - Analyst Report) and RogersCommunications Inc. (RCI - Analyst Report) – has a Zacks Rank #3 (Hold).