Telus Corp (T.TO, TU.N), one of the country's three big telecommunications companies, reported a smaller-than-expected quarterly profit on Friday, hurt by increased spending on the company's broadband network.

Telus has spent billions of dollars to upgrade and expand its wireless and fixed-line internet networks to compete with BCE Inc (BCE.TO) and Rogers Communications Inc (RCIb.TO) for wireless customers, and against Shaw Communications for television and Internet customers in western Canada.

Telus's earnings before interest, tax, depreciation and amortization, excluding capital expenditure, fell nearly 23 per cent in the third quarter ended Sept. 30.

The company's capital spending grew 26 per cent in the quarter.

However, strong growth in wireless subscribers helped the company post a 2.6 per cent rise in operating revenue to $3.24 billion.

Telus said it added 87,000 net postpaid wireless customers, higher than the 69,000 a year earlier.

The company also raised its quarterly dividend to 48 cents per share from 46 cents. Telus plans to raise its annual dividend by 7-10 per cent from 2017 through to the end of 2019.

The company's net income fell to $355 million, or 59 cents per share, in the third quarter from $365 million, or 61 cents per share, a year earlier.

Excluding one-time items, the company reported a profit of 65 cents per share, missing the average analyst estimate of 67 cents, according to Thomson Reuters I/B/E/S.