(TU) Telus To Be Exclusive Carrier of Motorola Backflip Smartphone in Canada

March 5th, 2010

The second largest Canadian operator Telus Corp (TU) has confirmed that it will be the exclusive carrier for Motorola’s (MOT) acclaimed Backflip smartphone in Canada. The device is expected to be available on the company’s 3G HSPA+ network in late 2010. However, Telus has not released any pricing information or any specific launch date.

The award winning Backflip is powered by Google’s (GOOG) Android operating system and is equipped with Motorola’s “MotoBlur” interface, which enables easy access to feeds and updates from various social networks such as Facebook and Twitter.

The multi-tasking device offers popular Google applications such as Gmail, Google Maps and Google Talk as well as YouTube. Backflip is one of the three MotoBlur android phones that Motorola plans to introduce in the Canadian market in 2010. US telecom behemoth AT&T (T) is set to launch Backflip on March 7, 2010, its first android phone.

Telus is banking heavily on the new HSPA+ technology based 3G wireless network launched in November 2009 in collaboration with its Canadian peer BCE Inc (BCE). Leveraging this advanced network, the carrier also launched the iPhone (3G and 3GS), ending Rogers Communication’s (RCI) exclusivity on the iconic handset. Telus has also added the Motorola Milestone and HTC Hero android phones to its smartphone line-up.

Blackflip will leverage the blazing fast network speeds (peak downlink speeds of up to 21 megabits per second) enabled by the HSPA+ network. The device represents a major opportunity for Telus to boost the performance of its wireless business as the company is experiencing declines in wireless ARPU (average revenue per user) and new subscriber additions.

Telus is exposed to an increasingly competitive environment which is set to intensify in 2010 with the entry of new wireless players. Nevertheless, we are encouraged by the company’s prospects in wireless driven by network upgrades, expanded distribution capabilities and a rich portfolio of next-generation smarphones that may improve ARPU moving forward

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