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

15.64% 15.64% 15.00% 14.50% 14.00%
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%

522 595 669 736 788

135 154 173 190 204
(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.

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AIRTHREAD ACQUISITION Licensing Agreemts

Total Consolidated Markets:

Region Population Customers Penetration
Central US 65,096 3,846 5.9%
Mid-Atlantic 11,677 1,180 10.1%
New England 2,830 518 18.3%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 82,371 6,122 7.4%

Total Operating Markets:

Region Population Customers Penetration
Central US 32,497 3,846 11.8%
Mid-Atlantic 7,346 1,180 16.1%
New England 2,344 518 22.1%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 44,955 6,122 13.6%
Harvard Business Publishing
AIRTHREAD ACQUISITION Customer Operating Data

Customer Data: 2005 2006 2007

Net Customer Additions 301 310 477
Cost Per Customer Addition 372 385 487
Cost of New Customer Additions 111,972 119,350 232,299

Cost of Equipment Sold/Equipment Revenue 251.3% 219.9% 239.8%

Monthly Churn Rate 2.1% 2.1% 1.7%

Revenue Per Minute 2005 2006 2007

Monthly ARPU 45.24 47.23 51.13
Customer Minutes Per Month 625 704 859
Revenue Per Minute 0.0724 0.0671 0.0595
Harvard Business Publishing
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
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

40
12
Harvard Business Publishing
AIRTHREAD ACQUISITION Balance Sheet

Assets: 2005 2006 2007

Cash & Cash Equivalents 29.0 32.9 204.5
Marketable Securities 0.0 249.0 16.4
Accounts Receivable 362.4 407.4 435.5
Inventory 92.7 117.2 101.0 working capital for 2007
Prepaid Expenses 32.1 35.0 41.6 115
Deferred Taxes 8.2 0.0 18.6
Other Current Assets 15.5 13.4 16.2
Total Current Assets 539.9 854.9 833.8

Property, Plan & Equipment 2,553.0 2,628.8 2,595.1

Licenses 1,362.3 1,494.3 1,482.4
Customer Lists 47.6 26.2 15.4
Marketable Equity Securities 225.4 4.9 0.0
Investments in Affiliated Entities 172.1 150.3 157.7
Long Term Note Receivable 4.7 4.5 4.4
Goodwill 481.2 485.5 491.3
Other Long Term Assets 30.0 31.1 31.8
Total Assets 5,416.2 5,680.6 5,611.9

Liabilities & Owners' Equity:

Accounts Payable 254.1 254.9 260.8
Deferred Revenue & Deposits 111.4 123.3 143.4
Accrued Liabilities 42.9 47.8 59.2
Taxes Payable 36.7 26.9 43.1
Deferred Taxes 0.0 26.3 0.0
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

Long Term Debt 1,001.4 1,001.8 1,002.3

Forward Contracts 159.9 0.0 0.0
Derivative Liability 25.8 0.0 0.0
Deferred Tax Liability 647.1 601.5 554.4
Asset Retirement Obligation 90.2 127.6 126.8
Other Deferred Liabilities 46.2 62.9 84.5

Minority Interest 41.9 36.7 43.4

Common Stock & Paid-In Capital 1,375.0 1,378.9 1,404.1
Retained Earnings 1,366.0 1,614.4 1,792.1
Total Liabilities & Owners' Equity 5,416.2 5,680.6 5,611.9
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115
AIRTHREAD ACQUISITION Amortization Schedule
Term Loan 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

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Harvard Business Publishing
AIRTHREAD ACQUISITION

Equity Net Debt/ Debt/ Equity Net

Comparable Companies: Market Value Debt Value Equity Beta Revenue EBIT EBITDA Income
Universal Mobile 118,497 69,130 36.8% 58.3% 0.86 43,882 11,795 16,949 3,794
Neuberger Wireless 189,470 79,351 29.5% 41.9% 0.89 42,684 7,020 14,099 4,103
Agile Connections 21,079 5,080 19.4% 24.1% 1.17 34,698 1,631 9,914 (30)
Big Country Communicatio 26,285 8,335 24.1% 31.7% 0.97 38,896 6,702 12,614 3,384
Rocky Mountain Wireless 7,360 3,268 30.7% 44.4% 1.13 4,064 510 1,028 240
Average 28.1% 40.1% 1.00

Bl= Bu(1+(1-t)D/V)

So
Bu=BL/(1+(1-t)D/V)
unleavered beta
0.637
0.711
1.022
0.815
0.892
0.82

Rf=4.25 Rpm=5
beta =.82

Re
8.350
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!
Revenue Projections: 2008 2009 2010 2011 2012
Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Equipment Revenue 314.8 358.8 403.7 444.1 475.2
Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4
Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6
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

522 595 669 736 788

135 154 173 190 204

EBIDTA 1,111.14 1,266.70 1,425.04 1,567.54 1,677.27

Dep and amortization 705.2 804.0 867.4 922.4 952.9
EBIT 405.91 462.74 557.60 645.16 724.36
tax rate 40.0% 40.0% 40.0% 40.0% 40.0%
EBIT(1-t) 243.5466490929 277.64318 334.55929 387.09887 434.6153

Accounts Receivable 521.8951262775 594.96044 669.3305 736.26355 787.802

Days Sales Equip. Rev. 134.967917493 153.86343 173.09635 190.40599 203.73441
Prepaid Expenses 46.9148279087 53.482904 60.168267 66.185093 70.81805
Accounts Payable 335.4213192245 382.3803 430.17784 473.19563 506.31932
Deferred Serv. Revenue 163.2542473617 186.10984 209.37357 230.31093 246.43269
Accrued Liabilities 64.6090398745 73.654305 82.861094 91.147203 97.527507

Working capital 140.4932652186 160.16232 180.18261 198.20087 212.07494

Change in WC 25.4932652186 19.669057 20.02029 18.018261 13.874061
Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Unleavered FCF 292.01 342.28 314.54 321.37 318.64
PV found by discounting at 8.35% 269.50 291.55941 247.27929 233.1802 213.38346 1,254.91
Interest Expense 199 183 166 148 128
Tax sheild 79.6 73.2 66.4 59.2 51.2
PV of tax sheild @ 5.5% 75.4502369668 65.766717 56.547147 47.787231 39.174879 284.72621

Total Value 1,539.63

Net Reinvestment 116

Growthrate 2.87
from exhibit 5 working capital of 2007 is
115

discount rate of 8.35 from exhibit 7

0.9229349
0.8518089
0.7861642
0.7255784
0.6696616

Interest Expense
199.000

r= 7.52

growth rat Reinvestment Rate*ROIC

Capex+Change in WC-Dep/(EBIT)*EBIT(1-t)/(d+e)

1068.5106
Assets: 2005 2006 2007 2008 2009 2010 2011 2012
Cash & Cash Equivalents 29.0 32.9 204.5 87.0 14.0 0.0 0.0 0.0
Marketable Securities 0.0 249.0 16.4 16.0 16.0 16.0 16.0 16.0
Accounts Receivable 362.4 407.4 435.5 522.0 594.0 670.0 736.0 787.0 <---- from sheet 1
Inventory 92.7 117.2 101.0 135.0 154.0 173.0 190.0 203.0
Prepaid Expenses 32.1 35.0 41.6 47.0 53.0 60.0 66.0 70.0
Deferred Taxes 8.2 0.0 18.6 19.0 19.0 19.0 19.0 19.0
Other Current Assets 15.5 13.4 16.2 16.0 16.0 16.0 16.0 16.0
Total Current Assets 539.9 854.9 833.8 842.0 866.0 954.0 1,043.0 1,111.0

Property, Plan & Equipment 2,553.0 2,628.8 2,595.1 2,521.096 2,436.096 2,436.096 2,484.096 2,587.096
Licenses 1,362.3 1,494.3 1,482.4 1,482.0 1,482.0 1,482.0 1,482.0 1,482.0
Customer Lists 47.6 26.2 15.4 15.0 15.0 15.0 15.0 15.0
Marketable Equity Securities 225.4 4.9 0.0 0.0 0.0 0.0 0.0 0.0
Investments in Affiliated Entities 172.1 150.3 157.7 158.0 158.0 158.0 158.0 158.0
Long Term Note Receivable 4.7 4.5 4.4 4.0 4.0 4.0 4.0 4.0
Goodwill 481.2 485.5 491.3 491.0 491.0 491.0 491.0 491.0
Other Long Term Assets 30.0 31.1 31.8 32.0 32.0 32.0 32.0 32.0
Total Assets 5,416.2 5,680.6 5,611.9 5,545.096 5,484.096 5,572.096 5,709.096 5,880.096

Liabilities & Owners' Equity:

Accounts Payable 254.1 254.9 260.8
Deferred Revenue & Deposits 111.4 123.3 143.4
Accrued Liabilities 42.9 47.8 59.2
Taxes Payable 36.7 26.9 43.1
Deferred Taxes 0.0 26.3 0.0
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

Long Term Debt 1,001.4 1,001.8 1,002.3

Forward Contracts 159.9 0.0 0.0
Derivative Liability 25.8 0.0 0.0
Deferred Tax Liability 647.1 601.5 554.4
Asset Retirement Obligation 90.2 127.6 126.8
Other Deferred Liabilities 46.2 62.9 84.5

Minority Interest 41.9 36.7 43.4

Common Stock & Paid-In Capital 1,375.0 1,378.9 1,404.1

Retained Earnings 1,366.0 1,614.4 1,792.1
Total Liabilities & Owners' Equity 5,416.2 5,680.6 5,611.9

Cash and cash equivalents of 2008 2009 2010 2011 2012

ending balance of 2007+fcf of 08-int-principal=interest tax sheild
86.5 14 -97 -207 -2462
<---- from sheet 1

PPE
PPE2007+CAPEX08-DEP08