TELUS Corporation TU recently announced that it is waiving fees under its “Internet for Good” program for 60 days in order to support low-income and deprived families in Canada with seamless wireless connectivity. The step is primarily aimed at helping low-income users to cope with the coronavirus-induced crisis by providing them with enhanced digital services for free. Despite such novel corporate social responsibility (CSR) initiative, the company’s shares declined 0.1% in yesterday’s trading session to close at $15.16.
Introduced in 2016, Internet for Good is an innovative partnership between TELUS, Ministry of Community and Social Services in Alberta and the British Columbia Ministry of Social Development and Poverty Reduction. Specifically designed to encourage digital equality, the program provides underprivileged families with seamless accessibility of high-speed Internet services and broadband connectivity.
Apart from providing low-cost Internet access, the program enables Canadians to improve the mental well-being of children with free digital literacy resources amid this hour of crisis. Notably, the Internet for Good program, which generally provides Internet plans at just $9.95/month, are currently available to more than 200,000 Canadian families with no additional costs for two months.
Several other premier companies like AT&T Inc. T, Verizon Communications Inc. VZ, Sprint Corporation S and T-Mobile have joined forces with Federal Communications Commission to utilize additional spectrum to address the wireless broadband needs of Americans during the ongoing pandemic. Apart from taking necessary steps to prevent the spread of the contagious disease, these tech behemoths are waiving wireless voice and data overage fees for all customers and expanding eligibility for its low-income Internet program for the next 60 days.
Currently, TELUS is focused on strategy execution, amplifying efforts to increase cost efficiency for margin accretive customer growth and investing to support its growth strategy. With the expansion of IoT marketplace in Canada, TELUS is aiming to consolidate its foothold in the market. It has introduced the TELUS Global IoT Connectivity platform to deliver seamless connectivity and simplified billing across 200 networks globally to support the expansion of Canadian business enterprises.
The company’s financial targets for 2020 reflect growth in data services across wireless and wireline. The company intends to continue generating subscriber growth in its key segments, including wireless, Internet, TV, and home automation and security. Increasing demand for reliable access and fast data services is expected to support customer growth. TELUS Health and TELUS International are also likely to continue contributing to its growth profile.
TELUS has long-term earnings growth expectation of 5.5%. Shares of the Zacks Rank #4 (Sell) have lost 5.4% compared with the industry’s decline of 5% in the past year.
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