(Adds analysts estimates, details on dividend and capex)
Nov 4 (Reuters) - Telus Corp T.TO TU.N , one of Canada'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 percent in the third quarter ended Sept. 30.
The company's capital spending grew 26 percent in the quarter.
However, strong growth in wireless subscribers helped the company post a 2.6 percent rise in operating revenue to C$3.24 billion ($2.42 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 Canadian cents per share from 46 Canadian cents. Telus plans to raise its annual dividend by 7-10 percent from 2017 through to the end of 2019.
The company's net income fell to C$355 million, or 59 Canadian cents per share, in the third quarter from C$365 million, or 61 Canadian cents per share, a year earlier.
Excluding one-time items, the company reported a profit of 65 Canadian cents per share, missing the average analyst estimate of 67 Canadian cents, according to Thomson Reuters I/B/E/S. ($1 = C$1.34)