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You could do either, though usually the ONT is placed in the garage or communications cabinet, and ethernet run from there.
EDIT: you should use at least Cat 6 Ethernet cable.
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I just got fibre installed to the exterior box. The installer said that I should be getting a call from another Telus rep shortly. When the next installer comes by to perform the interior installation, should I ask to have the fibre modem installed as close to my existing router as possible to maximize the fibre run or is it ok to place the fibre modem in a convenient location in the garageand then run cat5 to the modem? Thanks.
Don't put the router in a non-climate controlled location. People do this, but the cooling/heating cycle puts more stress on the electronics. VoIP "telephone" systems tend to do it this way only because that's where the cat3 cable drops are. Put your router the closest to your primary equipment (eg a gaming computer,) or if you have an unfinished basement, run Cat 6A cables between each place in your house you want a cable connector, and put an 5/8/12/16 port switch at that point and connect Telus's equipment to that via a short Cat5/6 patch cable and if you have a GigE router you want to use, put that between the switch and Telus's equipment, and make sure your router gets the real ip addresses (Telus does IPv6, so keep that in mind.) The reason is that you're only going to utilize 150mbps or 250mbps with PureFibre, so you want to have full duplex 1GigE or 10GigE between all your other devices, and by separating them this way to maximize the usable bandwidth. Optik TV devices will work properly without a router in the way, and can be coerced into working correctly if your router routes multicast correctly.