Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Telecom

Monday, July 21, 2008

TELUS urges government to invest $1 billion of spectrum windfall to help deliver broadband internet to rural Canadians

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VANCOUVER, Jul 21, 2008 (Canada NewsWire via COMTEX) ----Leading-edge broadband enables Canadians to have better quality of life

and compete on world stage

TELUS is encouraging the Government of Canada to invest $1 billion of the $4.25 billion raised in the wireless spectrum auction to pursue its stated goal of making Canada the most connected country in the world. The auction raised almost three times the anticipated $1.5 billion, giving Canada an unprecedented opportunity to bring broadband Internet services to thousands of rural communities.

"This is a once-in-a-lifetime opportunity to make Canada the most connected nation in the world and advance the government's own agenda of making ours an even more competitive economy," said Janet Yale, TELUS executive vice-president of Corporate Affairs. "More than $4 billion has been raised in the auction and it only makes sense that Canadians and consumers should see a corresponding expansion to the broadband infrastructure and services they already enjoy. Indeed, there is an obligation to re-invest a portion of the windfall revenues to build upon the billions of dollars Canadian telecom carriers have invested to allow more Canadians in rural, remote and First Nations communities to access high speed Internet services."

As recently as 2006, the Telecommunications Policy Review Panel recommended undertaking this effort as a great national project.

TELUS recommends $1 billion of the windfall auction proceeds be used to create a new fund to help finance the construction of broadband Internet infrastructure into remote and First Nations communities that would otherwise be uneconomical to build into.

"An investment of $1 billion in such a national project will be an investment in Canada's future, fostering innovation by businesses operating in rural areas while enhancing the lifestyles enjoyed by Canadians who are able to connect to the information economy for the first time," Yale said. "When you consider Canada's challenging geography and sparse population, the fact most Canadians already have access to broadband Internet is a home-grown success story. Let's work together to write the next chapter."

About TELUS

TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company in Canada, with $9.2 billion of annual revenue and 11.2 million customer connections including 5.6 million wireless subscribers, 4.4 million wireline network access lines and 1.2 million Internet subscribers. TELUS provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. In support of our philosophy to give where we live, TELUS, our team members and alumni have contributed $113 million to charitable and not-for-profit organizations and volunteered more than 2.1 million hours of service to local communities since 2000. Eight TELUS Community Boards across Canada lead our local philanthropic initiatives. For more information about TELUS, please visit telus.com.

SOURCE: TELUS Corporation

Julie Smithers, TELUS Media Relations, (416) 279-3958, julie.smithers@telus.com; Stacey Masson,
   TELUS Media Relations, (514) 977-8766, stacey.masson@telus.com

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