Offer to purchase CLEARNET.pdf - About TELUS

transcontinental high-density fibre optic transmission system used by the incumbent local exchange carriers.
TELUS’ approximately 70% owned subsidiary, QuébecTel Group, owns and operates the second largest
telecommunications system in Québec providing telecommunications services primarily in central and eastern
Québec. It has offices in Rimouski and other major cities in Québec, including Montreal and Québec City. The
TELUS network also interconnects with the network of GTE Corporation, a part of Verizon Communications
and Verizon Wireless and Genuity (formerly a GTE Corporation subsidiary), and the networks of other carriers
in the U.S. for the exchange of U.S. and international traffic.
TELUS carries on its full range of business throughout British Columbia, Alberta and in the QuébecTel
Territory. As part of its national growth strategy, TELUS is expanding into new geographic areas and emerging
communications businesses. TELUS is putting in place its own national fibre network, supplemented by fibre
rings in certain metropolitan areas. As part of its national strategy, TELUS plans to compete outside its
incumbent territory as a CLEC. TIC has obtained final approval to operate as a CLEC in downtown Toronto.
TELUS is pursuing CLEC status in other areas of Canada outside of Alberta, British Columbia and the
QuébecTel Territory. TIC currently offers business wireline voice and data services, with points of presence in
Regina, Saskatoon, Winnipeg, Burlington, Chatham, Hamilton, Kitchener, London, Mississauga, Oshawa,
Ottawa, Toronto and Windsor. Further expansion in Ontario and Nova Scotia is planned for later this year. TIC
also offers inter-networking and managed application services in Ontario and Québec. TIC plans to offer
regional Internet Protocol services in Ontario by the end of 2000.
TELUS Mobility is one of the major wireless and PCS providers in Canada offering both analogue and
digital voice and data services and paging services. TELUS Mobility offers services in British Columbia, Alberta,
Saskatchewan, Manitoba and Ontario. Effective May 11, 1999, TELUS Mobility negotiated the right to offer
services outside of British Columbia and Alberta on a national basis via resale, as a result of a new agreement
among Mobility Canada members. This new agreement does not restrict Mobility Canada members from
competing in each other’s territories. TELUS Mobility customers are able to roam throughout Canada through
its agreement with Mobility Canada members, and throughout North America through its own and Mobility
Canada’s arrangements with other cellular providers.
The TELUS Common Shares and the TELUS Non-Voting Shares are listed for trading on the TSE under
the symbol ‘‘T’’ and ‘‘T.A’’, respectively.
Clearnet
Clearnet is a holding company with two principal wholly-owned subsidiaries, Clearnet Inc. and Clearnet
PCS Inc.
Clearnet Inc. owns and operates an Enhanced Specialized Mobile Radio digital wireless business
communications service under the Mike TM
trademark, an analogue dispatch Specialized Mobile Radio service
and a multi-location mobile communications sales and service dealership division.
Clearnet PCS Inc. owns and operates a PCS digital wireless communications service under the Clearnet
PCS TM
trademark and numerous retail store outlets.
The Clearnet Non-Voting Shares trade in Canadian currency on the TSE under the stock symbol ‘‘NET.A’’
and in U.S. currency on NASDAQ under the stock symbol ‘‘CLNT’’.
Support Agreement
On August 20, 2000, Clearnet and TELUS entered into the Support Agreement which provides, among other
things, that TELUS will make the Offers. In the Support Agreement, Clearnet confirmed that the board of
directors of Clearnet has unanimously determined that the Offers are in the best interests of Clearnet, the
consideration offered thereunder is fair to the holders of Clearnet Shares and has unanimously recommended
that Shareholders accept the Offers and tender their Clearnet Shares hereto. See ‘‘Background to the Offers —
Support Agreement’’ in the Circular.
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