AIRTHREAD ACQUISITION Cost of Capital

Levered
Equity Net Debt/ Debt/ Equity Unlevered Assumptions:
Comparable Companies: Market Value Debt Value Equity Beta Beta Marginal Tax Rate 40.0%
Universal Mobile 118,497 69,130 36.8% 58.3% 0.86 0.64
Neuberger Wireless 189,470 79,351 29.5% 41.9% 0.89 0.71
Agile Connections 21,079 5,080 19.4% 24.1% 1.17 1.02 Market Risk Premium 5.00%
Big Country Communicatio 26,285 8,335 24.1% 31.7% 0.97 0.81 Risk-Free Rate 4.25%
Rocky Mountain Wireless 7,360 3,268 30.7% 44.4% 1.13 0.89
Average 28.1% 40.1% 1.00 0.82 Cost of Debt 5.50%

Debt/ Debt/ Unlevered Equity Cost of Cost of

Value Equity Beta Beta Equity Debt WACC
0.0% 0.0% 0.82 0.82 8.33% 5.50% 8.33%
5.0% 5.3% 0.82 0.86 8.54% 5.50% 8.28%
10.0% 11.1% 0.82 0.91 8.78% 5.50% 8.23%
15.0% 17.6% 0.82 0.96 9.05% 5.50% 8.19%
20.0% 25.0% 0.82 1.02 9.35% 5.50% 8.14%
25.0% 33.3% 0.82 1.09 9.69% 5.50% 8.09%
28.1% 39.1% 0.82 1.13 9.92% 5.50% 8.06%
35.0% 53.8% 0.82 1.25 10.52% 5.50% 8.00%
40.0% 66.7% 0.82 1.36 11.05% 5.50% 7.95%
45.0% 81.8% 0.82 1.48 11.66% 5.50% 7.90%
47.0% 88.7% 0.82 1.54 11.94% 5.50% 7.88%
50.0% 100.0% 0.82 1.63 12.41% 5.50% 7.85%
AIRTHREAD ACQUISITION Projected Cash Flows
Projected Income Statements

Operating Results: 2008 2009 2010 2011 2012 Synergy Switches:

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4 Bus. Revenue Synergy: 1
Plus: Equipment Sales 314.8 358.8 403.7 444.1 475.2 Include Synergy 1
Plus: Synergy Related Business Revenue 156.5 268.6 387.3 569.9 704.5 Exclude Synergy 2
Total Revenue 4,665.6 5,409.0 6,170.3 6,931.2 7,511.0
Less: System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3 Reduction in Backhaul: 1
Plus: Backhaul Synergy Savings 0.0 (13.4) (25.8) (52.5) (76.0) Include Synergy 1
Less: Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4 Exclude Synergy 2
Less: Selling, General & Administrative 1,866.2 2,163.6 2,468.1 2,772.5 3,004.4
EBITDA 1,205.0 1,441.3 1,683.3 1,962.1 2,175.9
Less: Depreciation & Amortization 729.7 846.0 925.5 1,005.0 1,051.5
EBIT 475.3 595.3 757.7 957.0 1,124.4
Less: Interest Expense 199.4 183.1 165.8 147.5 128.3
EBT 275.9 412.2 591.9 809.5 996.1
Less: Taxes 110.4 164.9 236.8 323.8 398.4
Net Income 165.5 247.3 355.2 485.7 597.7

Un-Levered Free Cash Flow:

NOPAT 285.2 357.2 454.6 574.2 674.6
Plus: Depreciation & Amortization 729.7 846.0 925.5 1,005.0 1,051.5
Less: Changes in Working Capital 50.2 26.5 27.4 26.9 19.9
Less: Capital Expenditures 653.2 757.3 925.5 1,057.0 1,164.2
Un-Levered Free Cash Flow 311.5 419.4 427.3 495.4 542.1

Operating Margins:
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%
Equipment Sales/Service Revenue 7.5% 7.5% 7.5% 7.5% 7.5%
Total Revenue Growth 18.2% 15.9% 14.1% 12.3% 8.4%
Wireless Service Gross Profit Margin 80.0% 80.0% 80.0% 80.0% 80.0%
Equipment Sales Gross Profit -140.0% -140.0% -140.0% -140.0% -140.0%
Selling, General & Administrative 40.0% 40.0% 40.0% 40.0% 40.0%
EBITDA 25.8% 26.6% 27.3% 28.3% 29.0%
Depreciation & Amortization 15.6% 15.6% 15.0% 14.5% 14.0%
EBIT 10.2% 11.0% 12.3% 13.8% 15.0%
Effective Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%
Cap-x/Revenue 14.0% 14.0% 15.0% 15.3% 15.5%
AIRTHREAD ACQUISITION Projected Cash Flows
Projected Balance Sheets

Assets: 2007 2008 2009 2010 2011 2012 Inventory Multiple Prepaid Expenses 2007
Cash & Cash Equivalents 204.5 106.4 109.7 114.0 179.0 0.0 57 0.014
Marketable Securities 16.4 16.4 16.4 16.4 16.4 16.4
Accounts Receivable 435.5 540.0 626.1 714.2 802.2 869.3 119
Inventory 101.0 119.2 135.8 152.8 168.1 179.9
Prepaid Expenses 41.6 47.8 55.2 62.7 70.1 75.8
Deferred Taxes 18.6 18.6 18.6 18.6 18.6 18.6
Other Current Assets 16.2 16.2 16.2 16.2 16.2 16.2
Total Current Assets 833.8 864.5 977.9 1,094.8 1,270.6 1,176.1

Property, Plan & Equipment 2,595.1 2,518.6 2,429.9 2,429.9 2,481.8 2,594.5
Licenses 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4
Customer Lists 15.4 15.4 15.4 15.4 15.4 15.4
Investments in Affiliated Entities 157.7 157.7 157.7 157.7 157.7 157.7
Long Term Note Receivable 4.4 4.4 4.4 4.4 4.4 4.4
Goodwill 491.3 491.3 491.3 491.3 491.3 491.3
Other Long Term Assets 31.8 31.8 31.8 31.8 31.8 31.8
Total Assets 5,611.9 5,566.1 5,590.8 5,707.7 5,935.4 5,953.7
1,851.9
Liabilities & Owners' Equity:
Accounts Payable 260.8 341.6 394.3 448.0 500.9 541.6 Operating Expense as base
Deferred Revenue & Deposits 143.4 134.7 155.5 176.7 197.5 213.6
Accrued Liabilities 59.2 65.8 76.0 86.3 96.5 104.3
Taxes Payable 43.1 43.1 43.1 43.1 43.1 43.1
Other Current Liabilities 97.7 97.7 97.7 97.7 97.7 97.7
Total Current Liabilities 604.2 682.9 766.5 851.8 935.7 1,000.3

Long Term Debt 1,002.3 3,467.6 3,161.3 2,837.8 2,496.0 0.0

Deferred Tax Liability 554.4 554.4 554.4 554.4 554.4 554.4
Asset Retirement Obligation 126.8 126.8 126.8 126.8 126.8 126.8
Other Deferred Liabilities 84.5 84.5 84.5 84.5 84.5 84.5

Minority Interest 43.4 43.4 43.4 43.4 43.4 43.4

Total Equity 3,196.2 606.4 853.8 1,208.9 1,694.6 2,292.3
Total Liabilities & Owners' Equity 5,611.9 5,566.1 5,590.8 5,707.7 5,935.4 4,101.8

Beginning Cash 204.5 106.4 109.7 114.0 179.0

Plus: Un-Levered Free Cash Flow 311.5 419.4 427.3 495.4 542.1
Less: After-Tax Interest Expense 119.7 109.8 99.5 88.5 77.0
Less: Principal Payments 289.9 306.3 323.6 341.8 2,496.0
Ending Cash 106.4 109.7 114.0 179.0 (1,851.9)
Equity Issuance 1,851.9
Final Cash Ending 0
Changes in Working Capital: 2007 2008 2009 2010 2011 2012
Accounts Receivable 435.5 540.0 626.1 714.2 802.2 869.3
Plus: Inventory 101.0 119.2 135.8 152.8 168.1 179.9
Plus: Prepaid Expenses 41.6 47.8 55.2 62.7 70.1 75.8
Less: Deferred Revenue 143.4 134.7 155.5 176.7 197.5 213.6
Less: Accounts Payable 260.8 341.6 394.3 448.0 500.9 541.6
Less: Accrued Liabilities 59.2 65.8 76.0 86.3 96.5 104.3
Net Working Capital 114.6 164.9 191.3 218.7 245.5 265.4
AIRTHREAD ACQUISITION Adjusted Present Value
Terminal Value With Lon-Term D/V of 28.1%

Un-Levered Free Cash Flows: 2008 2009 2010 2011 2012

NOPAT 285.2 357.2 454.6 574.2 674.6
Plus: Depreciation & Amortization 729.7 846.0 925.5 1,005.0 1,051.5
Less: Changes in Working Capital 50.2 26.5 27.4 26.9 19.9
Less: Capital Expenditures 653.2 757.3 925.5 1,057.0 1,164.2
Un-Levered Free Cash Flow 311.5 419.4 427.3 495.4 542.1

PV of FCF 8.33% 1,704.2 287.5 357.4 336.1 359.7 363.4

Interest Tax Shields 79.8 73.2 66.3 59.0 51.3

PV of Interest Tax Shields 284.8 75.6 65.8 56.5 47.6 39.3
Total Intermediate Term Value 1,988.9

TV Growth Rate 3.2%

TV WACC Cash Flow 7,866.7 11,591.2 Discount Rate for terminal Cashflows ?

Value of Operating Assets 9,855.6 PE Multiple 19.095 19.095

Value of Non-Operating Assets 1,719.2 Equity in Earning of Affilaites 90
Total Enterprise Value 11,574.8

PV without ACQ $ 6,585.90

Pv of Tax Shield $ 284.80
Total enterprise value with Debt $ 11,574.81
Value of Synergies $ 4,704.11
AIRTHREAD ACQUISITION Growth Rate

Long-Term Growth Rate: 2012

NOPAT 674.6
Invested Capital 4,100.8 D+E-Minority Interest
ROC 16.5%

Reinvestment 132.6 Capx+Change in WC-Dep

NOPAT 674.6
Reinvestment Rate 19.7%

Est. EBIT Growth Rate 3.2% ROC*Net Reinvestment Rate

AIRTHREAD ACQUISITION Intermediate Tax Shields

Interest Tax Shields: 2008 2009 2010 2011 2012

Interest Expense 199.4 183.1 165.8 147.5 128.3
Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%
Tax Shield 79.8 73.2 66.3 59.0 51.3
Interest Rate 5.50%
PV of Intermediate Tax Shields 284.8 75.6 65.8 56.5 47.6 39.3
AIRTHREAD ACQUISITION Amortization Schedule
Term Loan A Amortization

Annual Amortization Annual Amortization

Payment Interest Principal Balance Period Payment Interest Principal Balance Period
Date: 41 5.50% 3,758 120 Date: 41 5.50% 2,698 84
1/31/2008 41 17 24 3,734 1 6/30/2011 41 12 28 2,669 42
2/28/2008 41 17 24 3,710 2 7/31/2011 41 12 29 2,641 43
3/31/2008 41 17 24 3,687 3 8/31/2011 41 12 29 2,612 44
4/30/2008 41 17 24 3,663 4 9/30/2011 41 12 29 2,583 45
5/31/2008 41 17 24 3,639 5 10/31/2011 41 12 29 2,554 46
6/30/2008 41 17 24 3,615 6 11/30/2011 41 12 29 2,525 47
7/31/2008 41 17 24 3,590 7 12/31/2011 41 12 29 2,496 48
8/31/2008 41 16 24 3,566 8 1/31/2012 41 11 29 2,467 49
9/30/2008 41 16 24 3,542 9 2/28/2012 41 11 29 2,437 50
10/31/2008 41 16 25 3,517 10 3/31/2012 41 11 30 2,408 51
11/30/2008 41 16 25 3,492 11 4/30/2012 41 11 30 2,378 52
12/31/2008 41 16 25 3,468 12 5/31/2012 41 11 30 2,348 53
1/31/2009 41 16 25 3,443 13 6/30/2012 41 11 30 2,318 54
2/28/2009 41 16 25 3,418 14 7/31/2012 41 11 30 2,288 55
3/31/2009 41 16 25 3,393 15 8/31/2012 41 10 30 2,257 56
4/30/2009 41 16 25 3,367 16 9/30/2012 41 10 30 2,227 57
5/31/2009 41 15 25 3,342 17 10/31/2012 41 10 31 2,196 58
6/30/2009 41 15 25 3,317 18 11/30/2012 41 10 31 2,166 59
7/31/2009 41 15 26 3,291 19 12/31/2012 2,176 10 2,166 0 60
8/31/2009 41 15 26 3,265 20
9/30/2009 41 15 26 3,239 21
10/31/2009 41 15 26 3,214 22
11/30/2009 41 15 26 3,188 23
12/31/2009 41 15 26 3,161 24
1/31/2010 41 14 26 3,135 25
2/28/2010 41 14 26 3,109 26
3/31/2010 41 14 27 3,082 27
4/30/2010 41 14 27 3,055 28
5/31/2010 41 14 27 3,029 29
6/30/2010 41 14 27 3,002 30
7/31/2010 41 14 27 2,975 31
8/31/2010 41 14 27 2,948 32
9/30/2010 41 14 27 2,920 33
10/31/2010 41 13 27 2,893 34
11/30/2010 41 13 28 2,865 35
12/31/2010 41 13 28 2,838 36
1/31/2011 41 13 28 2,810 37
2/28/2011 41 13 28 2,782 38
3/31/2011 41 13 28 2,754 39
 4/30/2011 41 13 28 2,726 40
5/31/2011 41 12 28 2,698 41

AIRTHREAD ACQUISITION Amortization Schedule

Term Loan B Amortization
AIRTHREAD ACQUISITION Synergies

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
#REF!
AIRTHREAD ACQUISITION Debt Capacity

AirThread Debt Capacity:

Pre-Synergy Est. 2007 EBITDA 1,033 Total Borrowing 3,758
Interest Coverage Ratio 5.00x Amortization Period 10 Years
Maximum Interest Expense 207 Payments Per Year 12
Interest Rate 5.50% Monthly Payment 41
Est. Debt Capacity 3,758
Capacity
AIRTHREAD ACQUISITION Operating Assumptions

Revenue Projections: 2008 2009 2010 2011 2012

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1) 7.5% 7.5% 7.5% 7.5% 7.5%

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenue 20.0% 20.0% 20.0% 20.0% 20.0%

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

(1) Based on a 360-day year. Days Payable, Deferred Service Revenue, and Days Accrued Liabilities are
 based on total cash operating expenses.
(2) Includes investments in property, plant & equipment, as well as licenses and customer lists.
AIRTHREAD ACQUISITION Income Statement
Historical Operating Results

Operating Results: 2005 2006 2007

Service Revenue 2,827.0 3,214.4 3,679.2
Plus: Equipment Sales 203.7 258.7 267.0
Total Revenue 3,030.8 3,473.2 3,946.3
Less: System Operating Expenses 604.1 639.7 717.1
Less: Cost of Equipment Sold 511.9 568.9 640.2
Less: Selling, General & Administrative 1,217.7 1,399.6 1,555.6
EBITDA 697.0 865.0 1,033.3
Less: Depreciation & Amortization 490.1 555.5 582.3
EBIT 206.9 309.5 451.1
Less: Interest Expense 84.9 93.7 84.7
Plus: Equity in Earnings of Affiliates 66.7 93.1 90.0
Plus: Gains (Losses) on Investments 18.1 50.8 83.1 6
Plus: Other Income 54.5 (46.6) 7.0
EBT 261.3 313.1 546.5
Less: Taxes 95.9 120.6 216.7
Income Before Minority Interest 165.5 192.5 329.8
Less: Minority Interest 10.5 13.0 15.1
Net Income 155.0 179.5 314.7