Telus to spend $700-million to upgrade Alberta networks

http://www.financialpost.com/news-sectors/story.html?id=1494767

Summary
This article is about the second-largest mobile-phone, Telus plans to spend around $10 billion to upgrade their wireless and wifelines services in 2009. They tried to make 5% of earning growth that it’s between $3.4 billion-$3.7 billion shares. The past month, Telus spent $500-milllion in British Columbia to improve their services. In April, Telus Corp. plans to spend $700-million more in Alberta. Telus Corp. decides to upgrade the network technology. For example, High Speed Packet Access (HSPA) can make transmission faster on the date. They would try to provide service of Apple iPhone 3G and blackberry. They try to make good return on investment for next year. Also, they expect to have a good investment return for next year.

Connection
This article is related chapter5 which are the cash flow and investment. Telus Corp. tries to have more investing activities. Telus Corp. tries to improve their technology in order to attract more costumers to buy their products. However, they required to make sure they have enough cash flow. If they are only have limit cash, their company will be in danger or bankrupt. Cash flow management is very important that can affect a company directly. The successful company is depended on the cash flow. The stocks in Telus Corp. have done a great job in making decisions because they have deeply considered and they have done a lot of researches. However, they must flow a rule that operating cash flows which must be sufficient to support investing and financing activities over the long term.


Reflection
In my opinion, Telus Corp. have made an improvement in making a great sale but they should not start at the falling down economy. They have invested too much money on this improvement. They will be short of money on other activities. I think they should consider a rule of cash flow seriously. They will cause a trouble, if they only have limited flowing cash. They invest these huge amounts of money; they should understand that they should not get a good return immediately. While the economy slows down, customers will not use lot money on little supplies. I believe they would have a longer time to get a return on this investment.