2008 2009 2010 2011 2012

Operating Results
Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Equiment Sales 314.8 358.8 403.7 444.1 475.2
Synergy related Bus Rev 0.0 0.0 0.0 0.0 0.0
Total revenue 4,509.1 5,140.3 5,782.9 6,361.3 6,806.6
Less System operating Exp 838.9 956.3 1,075.8 1,183.4 1,266.3
plus backhaul synergy savings 0.0 0.0 0.0 0.0 0.0
less cost of equipment sold 755.5 861.2 968.9 1,065.8 1,140.4
Less Selling and Gen Adm Exp 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6
EBITDA 1,111.1 1,266.6 1,425.0 1,567.6 1,677.3
Less Depreciation and Amort 705.2 804.0 867.4 922.4 952.9
EBIT 405.9 462.6 557.6 645.2 724.4
Unlevered Free Cash Flow
NOPAT 243.5 277.6 334.6 387.1 434.6
Plus Depreciation and Amor 705.2 804.0 867.4 922.4 952.9
Less Changes in Working Cap 25.9 19.7 20.0 18.0 13.9
Less Capital Expenditure 631.3 719.7 867.4 970.1 1,055.0
Unlevered Free Cash Flow 291.5 342.2 314.6 321.4 318.6
PV Intermediate Cash Flows $1,269.49
Operating Margins
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%
Equipment Sales/ Service Rev 7.5% 7.5% 7.5% 7.5% 7.5%
Total revenue growth 14.3% 14.0% 12.5% 10.0% 7.0%
Wireless service gross profit margin 80.0% 80.0% 80.0% 80.0% 80.0%
Equipment Sales GP margin -140.0% -140.0% -140.0% -140.0% -140.0%
Selling, General and Administrative 40.0% 40.0% 40.0% 40.0% 40.0%
EBITDA 24.6% 24.6% 24.6% 24.6% 24.6%
Depreciation and Amortization 15.6% 15.6% 15.0% 14.5% 14.0%
EBIT 9.0% 9.0% 9.6% 10.1% 10.6%
Effective Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%
Cap X/ Rev 14.0% 14.0% 15.0% 15.3% 15.5%

Wireless Business Subscribers: 2008 2009 2010 2011 2012

Average Monthly Subscribers (in MM's) 0.3 0.5 0.7 1.0 1.2
Average Monthly Minutes 859.0 884.8 911.3 938.7 966.8
Total Monthly Minutes 257.7 442.4 637.9 938.7 1160.2
Revenue Per Minute 0.1 0.1 0.1 0.1 0.1
Annual Business Revenue Increase 156.5 268.6 387.3 569.9 704.5

Backhaul Savings: 2008.0 2009.0 2010.0 2011.0 2012.0

System Operating Expenses 838.9 956.3 1075.8 1183.4 1266.3
Backhaul Percentage 0.2 0.2 0.2 0.2 0.2
Estimated Backhaul Costs 167.8 191.3 215.2 236.7 253.3
Reduction in Backhaul Costs 0.0 0.1 0.1 0.2 0.3
Backhaul Savings 0.0 13.4 25.8 52.5 76.0

Operating Results
Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Equiment Sales 314.8 358.8 403.7 444.1 475.2
Synergy related Bus Rev 156.5 268.6 387.3 569.9 704.5
Total revenue 4,665.6 5,408.9 6,170.2 6,931.2 7,511.1
Less System operating Exp 838.9 956.3 1,075.8 1,183.4 1,266.3
plus backhaul synergy savings 0.0 13.4 25.8 52.5 76.0
less cost of equipment sold 755.5 861.2 968.9 1,065.8 1,140.4
Less Selling and Gen Adm Exp 1,866.2 2,163.6 2,468.1 2,772.5 3,004.4
EBITDA 1,204.9 1,441.2 1,683.3 1,962.1 2,175.9
Less Depreciation and Amort 727.8 843.8 925.5 1,005.0 1,051.5
EBIT 477.1 597.4 757.7 957.1 1,124.4
Less Interest Exp 199.6 183.0 165.8 147.5 128.3
EBT 277.5 414.4 591.9 809.6 996.1
Less Taxes 111.0 165.8 236.8 323.8 398.4
Net Income 166.5 248.7 355.2 485.7 597.6

EBIT 477.1 597.4 757.7 957.1 1,124.4

Unlevered Free Cash Flow
NOPAT 286.3 358.5 454.6 574.2 674.6
Plus Depreciation and Amor 727.8 843.8 925.5 1,005.0 1,051.5
Less Changes in Working Cap 37.5 29.4 30.1 34.3 26.3
Less Capital Expenditure 653.2 757.2 925.5 1,060.5 1,164.2
Unlevered Free Cash Flow 323.4 415.6 424.5 484.4 535.7

Terminal Value Growth Rate

Long-Term Growth Rate: 2012
NOPAT 674.6
Invested Capital 4,107.5
ROC 16.4%

Net Reinvestment 139.0

NOPAT 674.6
Reinvestment Rate 20.6%

Est. EBIT Growth Rate 3.4%

 AirThread Debt Capacity
Total
Pre Synergy (EST 2007)EBITDA 1,033 Borrowings 3,756
Amortization
Interest Coverage Ratio 5.00x Period 10 yrs
Payment per
Maximum Interest Expense 207 year 12
Monthly
Interest Rate 5.5% payment (41)
Estimated Debt Capacity 3,756

Excess Cash 2008 2009 2010

Exclude Synergies
Unlevered Free Cash Flow 291.5 342.2 314.6
Less After Tax interest Expense 119.7 109.8 99.5
Less Scheduled Principal Payments 289.9 306.3 323.6
Excess Cash (118.1) (73.9) (108.5)
Cash on Balance sheet 86.6 12.7 (95.9)

Include Synergies
Un-levered Free Cash Flow 324.2 416.5 424.5
Less After Tax interest expenses 119.7 109.8 99.5
Less Scheduled Principal Payments 289.9 306.3 323.6
Excess Cash (85.4) 0.4 1.4

Cash on Balance Sheet 119.1 119.5 120.9

Cash Reconciliation 2008

Beginning Cash Balance 204.5
Cash from operation 291.5
Less after tax interest expenses 119.7
less principal payments 289.9
Ending Cash Balance 86.4

Interest Tax shields

Interest Expenses 199.6 183.0 165.8
Tax Rate 0.4 0.4 0.4
Tax Shield 79.8 73.2 66.3
Interest Rate 5.5%
PV of intermediate Tax shields 75.7 65.8 56.5

Annual
Payment Interest
Date: 41 5.50%
1/31/2008 41 17
2/28/2008 41 Err:522
3/31/2008 41 Err:522
4/30/2008 41 Err:522
5/31/2008 41 Err:522
6/30/2008 41 Err:522
7/31/2008 41 Err:522
8/31/2008 41 Err:522
9/30/2008 41 Err:522
10/31/2008 41 Err:522
11/30/2008 41 Err:522
12/31/2008 41 Err:522
1/31/2009 41 Err:522
2/28/2009 41 Err:522
3/31/2009 41 Err:522
4/30/2009 41 Err:522
5/31/2009 41 Err:522
6/30/2009 41 Err:522
7/31/2009 41 Err:522
8/31/2009 41 Err:522
9/30/2009 41 Err:522
10/31/2009 41 Err:522
11/30/2009 41 Err:522
12/31/2009 41 Err:522
1/31/2010 41 Err:522
2/28/2010 41 Err:522
 3/31/2010 41 Err:522
4/30/2010 41 Err:522
5/31/2010 41 Err:522
6/30/2010 41 Err:522
7/31/2010 41 Err:522
8/31/2010 41 Err:522
9/30/2010 41 Err:522
10/31/2010 41 Err:522
11/30/2010 41 Err:522
12/31/2010 41 Err:522
1/31/2011 41 Err:522
2/28/2011 41 Err:522
3/31/2011 41 Err:522
4/30/2011 41 Err:522
5/31/2011 41 Err:522
 2011 2012

321.4 318.6
88.5 77.0
341.8 2,496.0
(108.9) (2,254.4)
(204.8) (2,459.1)

487.9 535.7
88.5 77.0
341.8 2,496.0
57.6 (2,037.3)

178.5 (1,858.8)

147.5 128.3
 0.4 0.4
59.0 51.3

47.6 39.3

Amortization Annual
Principal Balance Period Payment Interest
3,756 120 Date: 41 5.50%
24 3,733 1 6/30/2011 41 12
Err:522 Err:522 2 7/31/2011 41 Err:522
Err:522 Err:522 3 8/31/2011 41 Err:522
Err:522 Err:522 4 9/30/2011 41 Err:522
Err:522 Err:522 5 10/31/2011 41 Err:522
Err:522 Err:522 6 11/30/2011 41 Err:522
Err:522 Err:522 7 12/31/2011 41 Err:522
Err:522 Err:522 8 1/31/2012 41 Err:522
Err:522 Err:522 9 2/28/2012 41 Err:522
Err:522 Err:522 10 3/31/2012 41 Err:522
Err:522 Err:522 11 4/30/2012 41 Err:522
Err:522 Err:522 12 5/31/2012 41 Err:522
Err:522 Err:522 13 6/30/2012 41 Err:522
Err:522 Err:522 14 7/31/2012 41 Err:522
Err:522 Err:522 15 8/31/2012 41 Err:522
Err:522 Err:522 16 9/30/2012 41 Err:522
Err:522 Err:522 17 10/31/2012 41 Err:522
Err:522 Err:522 18 11/30/2012 41 Err:522
Err:522 Err:522 19 12/31/2012 2,176 Err:522
Err:522 Err:522 20
Err:522 Err:522 21
Err:522 Err:522 22
Err:522 Err:522 23
Err:522 Err:522 24
Err:522 Err:522 25
Err:522 Err:522 26
Err:522 Err:522 27
Err:522 Err:522 28
Err:522 Err:522 29
Err:522 Err:522 30
Err:522 Err:522 31
Err:522 Err:522 32
Err:522 Err:522 33
Err:522 Err:522 34
Err:522 Err:522 35
Err:522 Err:522 36
Err:522 Err:522 37
Err:522 Err:522 38
Err:522 Err:522 39
Err:522 Err:522 40
Err:522 Err:522 41
Principal

28
Err:522
Err:522
Err:522
Err:522
Err:522
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Err:522
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Err:522
Err:522
Wireless Business Subscribers: 2008 2009 2010 2011 2012
Average Monthly Subscribers (in MM's) 0.30 0.50 0.70 1.00 1.20
Average Monthly Minutes 859 885 911 939 967
Total Monthly Minutes 258 442 638 939 1,160
Revenue Per Minute 0.0506 0.0506 0.0506 0.0506 0.0506
Annual Business Revenue Increase 156 269 387 570 704

Backhaul Savings: 2008 2009 2010 2011 2012

System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
Backhaul Percentage 20.0% 20.0% 20.0% 20.0% 20.0%
Estimated Backhaul Costs 167.8 191.3 215.2 236.7 253.3
Reduction in Backhaul Costs 0.0% 7.0% 12.0% 22.2% 30.0%
Backhaul Savings 0.0 13.4 25.8 52.5 76.0

Terminal Value Growth Rate with synergies

Assets: 2005 2006 2007 2008 2009 2010
Cash & Cash Equivalents 29.0 32.9 204.5 119.2 119.6 121.1
Marketable Securities 0.0 249.0 16.4 16.4 16.4 16.4
Accounts Receivable 362.4 407.4 435.5 540.0 626.1 714.2
Inventory 92.7 117.2 101.0 135.0 153.9 173.1
Prepaid Expenses 32.1 35.0 41.6 47.8 54.8 62.0
Deferred Taxes 8.2 0.0 18.6 18.6 18.6 18.6
Other Current Assets 15.5 13.4 16.2 16.2 16.2 16.2
Total Current Assets 539.9 854.9 833.8 893.1 1,005.4 1,121.4

Property, Plan & Equipmen 2,553.0 2,628.8 2,595.1 2,518.6 2,429.9 2,429.9
Licenses 1,362.3 1,494.3 1,482.4 1,482.4 1,482.4 1,482.4
Customer Lists 47.6 26.2 15.4 15.4 15.4 15.4
Marketable Equity Securiti 225.4 4.9 0.0
Investments in Affiliated En 172.1 150.3 157.7 157.7 157.7 157.7
Long Term Note Receivabl 4.7 4.5 4.4 4.4 4.4 4.4
Goodwill 481.2 485.5 491.3 491.3 491.3 491.3
Other Long Term Assets 30.0 31.1 31.8 31.8 31.8 31.8
Total Assets 5,416.2 5,680.6 5,611.9 5,594.7 5,618.3 5,734.3

Liabilities & Owners' Equity:

Accounts Payable 254.1 254.9 260.8 341.6 391.7 442.9
Deferred Revenue & Depos 111.4 123.3 143.4 163.3 186.1 209.4
Accrued Liabilities 42.9 47.8 59.2 65.8 75.4 85.3
Taxes Payable 36.7 26.9 43.1 43.1 43.1 43.1
Deferred Taxes 0.0 26.3 0.0 97.7 97.7 97.7
Note Payable 135.0 35.0 0.0
Forward Contract 0.0 159.9 0.0
Derivative Liability 0.0 88.8 0.0
Other Current Liabilities 82.6 93.7 97.7
Total Current Liabilities 662.7 856.7 604.2 711.4 794.0 878.4

Long Term Debt #NAME? #NAME? #NAME? 3,467.6 3,161.3 2,837.8

Forward Contracts #NAME? #NAME? #NAME?
Derivative Liability #NAME?
Deferred Tax Liability #NAME? #NAME? #NAME? 554.4 554.4 554.4
Asset Retirement Obligati #NAME? #NAME? #NAME? 126.8 126.8 126.8
Other Deferred Liabilities #NAME? #NAME? #NAME? 84.5 84.5 84.5

Minority Interest #NAME? #NAME? #NAME? 43.4 43.4 43.4

Common Stock & Paid-In C#NAME? #NAME? #NAME? 606.4 853.8 1,208.9
Retained Earnings #NAME? #NAME? #NAME?
Total Liabilities & Owners' #NAME? #NAME? #NAME? 5,594.7 5,618.3 5,734.3

Beginning Cash 204.5 119.2 119.6

add Unlevered Free Cash Flow 324.2 416.5 424.5
less after tax interest exp 119.7 109.8 99.5
less principal payments 289.9 306.3 323.6
Ending Cash 119.2 119.6 121.1

Changes in WC 181.64596 211.41009 243.01316

Changes in Working Capital

Accounts Receivable 435.5 540.0 626.1 714.2
Plus Inventory 101.0 135.0 153.9 173.1
Plus Prepaid Expenses 41.6 47.8 54.8 62.0
Less Deferred Revenue (143.4) (163.3) (186.1) (209.4)
Less Accounts Payable (260.8) (341.6) (391.7) (442.9)
Less Accrued Liabilities (59.2) (65.8) (75.4) (85.3)
114.6 152.1 181.5 211.6
 2011 2012
178.6 0.0
16.4 16.4
802.2 869.3
190.4 203.7
68.6 73.7
18.6 18.6
16.2 16.2
1,291.0 1,197.9

2,481.8 2,594.5
1,482.4 1,482.4
15.4 15.4

157.7 157.7
4.4 4.4
491.3 491.3
31.8 31.8
5,955.9 5,975.4

490.5 526.6
230.3 246.4
94.5 101.4
43.1 43.1
97.7 97.7

956.1 1,015.3

2,496.0 1,858.7

554.4 554.4
126.8 126.8
84.5 84.5

43.4 43.4

1,694.6 2,292.3
 5,955.9 5,975.4

121.1 178.6
487.9 535.7
88.5 77.0
341.8 2,496.0
178.6 (1,858.7)

334.91937 182.58528

802.2 869.3
190.4 203.7
68.6 73.7
(230.3) (246.4)
(490.5) (526.6)
(94.5) (101.4)
245.9 272.2
 2008 2009 2010 2011
Interest Tax Shields
Interest Expense 199.6 183.0 165.8 147.5
Tax rate 40% 40% 40% 40%
Tax Shield 79.8 73.2 66.3 59.0
Interest Rate 5.5%
PV of intermediate Tax Shields 284.8
2012

128.3
40%
51.3
Valuation Without Sysnergies Disc rate Value 2008
Unlevered Free Cash Flows 7.86% 1,271 292
Interest Tax shields 5.50% 285 80
Total Intermediate term Value 1,556
Terminal Value Growth rate 2.90%
TV WACC Cash flow 4,789

Value of Operating Assets 6,345

Value of Non Operating Assets 1,719
Total Enterprise Value 8,063

Valuation with Synergies 7.59% 1,734 323.43

Interest Tax Shields 5.50% 285 80
Total Intermediate Cash Flows 2,018.5

Terminal Value Growth rate 0.0338285 8,721.8 0

Value of Operating assets 10,740.2
Value of Non Operating Assets 1,718.6
Total Enterprise Value 12,458.8
 2009 2010 2011 2012
342 315 321 319
73 66 59 51

6991.057

415.63 424.52 484.45 535.6667

73 66 59 51

0 0 0 12732.3