UPDATE 3-Telus posts lower profit, cuts earnings outlook

* Q3 EPS C$0.87 vs C$0.89

* Cuts earnings outlook for the year, blames economy

* Revs C$2.41 billion

* Says 1,750 full-time equivalent jobs cut since December

* Shares drop 2.1 percent

(Adds details, share price)

By Wojtek Dabrowski

TORONTO, Nov 6 (Reuters) - Telus Corp (T.TO), Canada's No. 2 phone company, said on Friday quarterly profit dipped and it lowered its earnings outlook for the year because of a weak economy and stepped-up competition in wireless.

The company also revealed it had cut an equivalent of about 1,750 full-time jobs since December to reduce costs. Telus currently employs about 35,000 people.

Telus now expects 2009 basic earnings of C$3.10 to C$3.30 a share, ditching a previous forecast of between C$3.35 and C$3.55.

It also shaved its revenue outlook to C$9.6 billion to C$9.7 billion, as long-term wireless subscriber additions and average spending by wireless customers dropped in the third quarter.

The stock dropped about 2 percent on the news, even though earnings topped analyst expectations according to Thomson Reuters I/B/E/S.

"What the market is focusing on is the lower guidance," said National Bank Financial analyst Greg MacDonald. "The direction is not a surprise. It's the magnitude that's a little surprising."

Earnings dropped to C$280 million ($261.7 million), or 87 Canadian cents a share, in the three months ended Sept. 30, from C$286 million, or 89 Canadian cents, a year earlier.

Revenue dipped to C$2.41 billion from C$2.45 billion.

The results come days after Telus, along with BCE Inc (BCE.TO), began selling Apple's (AAPL.O) iPhone, breaking a Canadian monopoly enjoyed by Rogers Communications Inc.'s since its introduction of the popular smartphone in Canada last year.