We’re sustaining our customer renewal volumes with the year-over-year step up. So, we’ve been able to manage our margins in areas like access points to device subsidies. We relaunched public mobile to balance customer growth and margins. So 100% digital, 100% redesigned for simplicity, the cost to serve is six times lower than TELUS, allows us to meet prices while maintaining premium margins. And I think going forward, we’re confident in our prospects for continued to invest backed by our consistent strategy, really best networks and customer experience, bundling, focus on execution. We anticipate ongoing subscriber strength from the growth in immigration and from product intensity. We continue to manage our margins with thoughtful mix of digital, bring your own phone and access points to device subsidies.
We actually believe the retail flanker 5G price points will drive step up, especially from the growth we’re getting on BYOP/newcomer growth, so that we see as a positive. And then 5G plus bundling, bring it back, family discounts are all holding and attracting our premium customers. So, we continue to expect a full year ARPU growth, and we’re very, very relentlessly focused on customer margin. Zainul, I don’t know if you want to talk about
Zainul Mawji: Yes. Maybe I will add a few points with respect to the West, as you highlighted there sign-in and the competitive intensity. So, to build on Jim’s point, we’re going to be ultra focused on AMPU driving wallet share and product intensity. And the customer loyalty that we continue to build on and garner, as well as the superiority of our network capabilities and also the real product differentiation we’re able to offer our customers from areas like home security and automation to consumer health are absolutely unique in the market. And so, those are areas where we’re continuing to see the opportunity to grow wallet share and grow our customer loyalty and affinity. And so, in terms of what we’re seeing in the competitive environment, we’re really seeing consistency with respect to how we’re executing on our strategy from the get-go, you’re seeing us able to monetize some of the elements of our strategy from a cost takeout perspective and the digitization perspective.
But to Darren’s earlier point, that’s been on the back of foundational investments we’ve made in both the network and the digital side. And it’s also enabled our ability to do rapid product development and rapid go-to-market for our new product capabilities. And so that’s serving us incredibly well. So we’re continuing to see strong outputs on the back of our Pure Fiber 5G bundling. We see better wallet share and customer household growth and better loyalty and as well as better cost to serve across the board, and we’re just heads down and focused on continuing to drive that strategy and seeing, as you’ve seen in our results, continued traction in that strategy.
Simon Flannery: Great. Thanks for the color.
Darren Entwistle: It’s pretty simple, Simon, Five Point strategy that you’ll see from this organization quarter in, quarter out, which is leverage best network, leverage best customer service, leverage best product portfolio, leverage best channels and digital capabilities and leverage best cost base. That’s the Five Point Plan.
Simon Flannery: Thank you.
Robert Mitchell: Thanks, Simon. Next question, please.
Operator: Thank you. Our next question comes from Vince Valentini of TD Securities. Please go ahead.
Vince Valentini: Yeah. Thanks very much. First, sorry if I missed it. The cost savings from the new restructuring program, I didn’t see anything in the TELUS International release, but it’s a public company. So I assume they have to provide some numbers. So hopefully, you can help us out how much of the — the $325 million will be on the TELUS side versus the TI side?
Darren Entwistle: So I think we did actually reference that in our call earlier today, Vince, it was $40 million in year — and that’s USD, not Canadian.
Vince Valentini: Yes, yes, 40 annual run rate.
Darren Entwistle: No, 10 years.
Douglas French: No, it’s restructuring dollars.
Darren Entwistle: Yes.
Vince Valentini: That’s restructuring done, sorry. Yes. So US$40 million out of the CAD 475 million restructuring costs is on the TI side. Do you have a similar figure on the $325 million ongoing operating savings?
Darren Entwistle: About 20% of that was TI
Vince Valentini: So I want to ask that first because my follow-up would be, if I take 80% of that $325 million, and then I take the new very impressive synergy target you’re throwing out of LifeWorks, getting up to $425 by the end of 2025. Even with — before we even add $1 of revenue growth, is it safe to assume that the EBITDA run rate in 2025 is circa $600 million higher than what we’re seeing this year?
Darren Entwistle: I think Vince will update guidance for next year as appropriate. I think Drew’s question on some of the offsets that may happen, including ARPU and some of the other pressures and the market size would potentially be a bit of volatility factor that this is going to hedge against. So I think the cost savings are, yes, down the path you suggested, but I think there’s other initiatives that we’ll balance that as we look into 2024, but we’re expecting to still have industry-leading growth as you’re implying.
