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Our file: 8695-C12-201105685

Ottawa, 10 June 2011

BY E-MAIL

Mr. Orest Romaniuk
Vice President & Controller
Regulatory Finance and Economic Affairs
10020 - 100th Street, Floor 21
Edmonton, Alberta
T5J 0N5
regulatory.affairs@telus.com

Concerning: TELUS Communications Company

Subject: 31 March and 2 June 2011 subsidy calculation filings

By letters dated 31 March and 2 June 2011, TELUS Communications Company (TELUS) filed its 2011 subsidy calculations.  In its subsidy filings, TELUS used revised Phase II costs as the starting point for its subsidy calculations, rather than its 2010 subsidy costs.

In paragraph 106 of Obligation to serve and other matters, Telecom Regulatory Policy CRTC 2011-291, 3 May 2011, as amended by Obligation to serve and other matters, Telecom Regulatory Policy CRTC 2011-291-1, 11 May 2011 (Telecom Regulatory Policy 2011-291), the Commission stated “The Commission notes that an ILEC may choose to file an application to update the costs used to calculate its subsidy amount”.

Commission staff does not consider the inclusion of revised Phase II costs within the subsidy calculations to be an application as contemplated in Telecom Regulatory Policy 2011-291.

In the event that TELUS wants the Commission to review the revised Phase II costs used in its subsidy calculations, it should file an application pursuant to Part I of the CRTC Rules of Practice and Procedure.

Until such time as revised subsidy costs have been approved by the Commission, TELUS must continue to use the previous year’s subsidy costs as the starting point for its current year’s subsidy calculations.

Therefore, TELUS is to re-file, with 20 days from the date of this letter, its 2011 subsidy calculations using its 2010 subsidy costs as the starting point.

Please direct any questions to Robert Thompson at (819) 994-2484.

Yours sincerely,

Original signed by Ron Hale on behalf of

Paul Godin
Director General, Industry and Market Analysis
Policy Development and Research

c.c. Robert Thompson, CRTC

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