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March 20, 2008

9:06PM

OVER 917-907-2350

RAJ RAJARATNAM (917-907-2350) RAJIV GOEL (650-492-0885)

Unintelligible: UI

Inaudible: IA

Phonetic Spelling: PH

Voice Overlap: 1/

Hello.

Hey Rajiv, Raj.

Hello.

Yeah. Yeah.

Yeah (UI). My kids are making fun of me the way I talk to you.

(Noise)

What?

So I have (Chuckles) to now leave the house to talk to you. One minute. One mi. .. (Chuckles)

[Aside: Stay inside.] One minute Raj. [Stay in. (UI) please.]

What do you have? Bunch of hyenas there?

Huh? No, no, no. No, they are (Chuckles) laughing at the way I talk to you because I talk slo- ... slo- ... softly, huh? So ... yeah ... Accha listen.

Urn-hum.

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43 So, did you uh ... digest the information I gave you?

Yes, I see it very simple, right? I looked at it, right?

Yeah.

This is how I would analyze it. You guys put 600 million, right?

Yeah.

And then ... you put a billion. 1.6 billion, right?

Yeah. Uh ... 620 billion. Vh ...

What?

... 620 million. Anyway, pl- ... yeah, keep going.

(UI). And you get ten percent of the new entity. Right?

O.K.

So, at minimum, the new entity's value, because you're not putting in any strategic stuff, right?

Yeah.

At the minimum, the new entity should be valued at 16 billion dollars.

Hmm ...

Right?

Yes, you are right. It's around 16 to se- ... 18 billion.

Yeah. So let's say 16 to 18 billion ... But I'm just saying, minimum, right?

Yeah.

That means the shareholders of Clearwire, the current shareholders ...

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43 Hmm.

... right?

Hmm.

That is McCaw and Clearwire, right? Together (VI) ...

Keep going, keep going.

What?

Keep going. I'm listening.

Hmm, together own 16 plus five; 21 percent. .. right?

Vhm ... 21 percent... Hang on. No, I don't think so.

You said the public owns 16 percent and McCaw owns five percent.

Public will own 16 percent in the eventual entity

Yeah.

McCaw will own five percent...

(VI) ...

... we will own ten percent.

Right.

But there are other shareholders ... Yeah, O.K. So ... so ...

(VI) lets say the public ..

So 21,31.

Twenty one, right?

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Yeah.

Just the ... the current entity without. .. without Google and without, uhm ... Sprint and all that. ..

Comcast. Yeah.

And Comcast, owns 21 percent. Right?

Yeah.

So 21 percent ofuh ... 1601' 17 billion dollar corporation is 3.6 billion.

O.K.

So the current value of Clearwire is at ten dollars a share, , which is where it sat around.

Yeah. So... so the collar comes in between 17 to 20.

So let me (VI). Current value is ten dollars, right?

Yeah, yeah.

At one 1.7. So at 3.7 ...

Yeah, yeah, I'm ... I'm ahead of you, yeah. Yeah.

... it's 20 dollars, right.

Yeah. Yeah.

So you're putting a collar. .. So it all makes sense, right?

Yeah.

So that means this stock is going to trade somewhere between 16 and 20.

O.K.

Or 17 and 20.

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Yeah.

Right?

Yeah.

(Noise)

Now, the new entity will have 3 'l'2 billion dollars in cash, plus they have 1.2 billion in cash; so 4.7 in cash, with a debt of 1 billion, right?

Yeah

So that's the math.

(Noise)

And and also they will have Spectrum. If you ... if you look at it

now .

Yeah.

... they will have Spectrum worth se- ... several billion dollars,

Right

Right? Because Sprint will be transferring its Spectrum to this

h ... ht?

U ... new entity, 1'1g t.

Right.

So ... (Noise) what are you going to do?

So then ... so the thing is ... So what does it do, right? The first thing it says is because Time Warner and Comeast and somebody else you said, I forgot, you know (UI).

Yeah. Yeah, Let me tell you what the board is going to be like, because there are gonna be such heavyweights on the board, it's not even funny. So uh ... who is the uh .. , CEO of... Roberts, right? Corneast, right?

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43 RAJIVGOEL: Right.

And the ex CTO of, ah ... AT&T.

Uh huh. Who the Iranian guy?

What. .. Uh ... (UI) ... give me a few names, I'Il tell you.

(UII) or something. Some Iranian guy?

No. No, no. No, there's uh ... there's somebody else. The ex ... the ex CTO ofuh ... Cing- ... ofuh ... Cingular.

O.K.

Then there's uh, Otellini is going to be on the board of this company.

Hmm ... hmm.

Then you have McCaw, of course.

Hmm.

Uh ... Google, uh ... then Schmidt is gonna be on this co- ... on this company.

Wow,

Eric ... (Noise) Eric ...

Uhhuh,

... Schmidt.

Uh-huh.

So it's a pretty .. , And the- ... there is going to be 13 members ...

Wow,

... on the board.

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Are you gonna be on?

And ... Don't be silly yaar. So, uh ... point I'm trying to make is that it's a pretty heaving hitting board.

Right.

So I don't know if that has a bearing on valuation.

Uh-huh, Nobody gives a shit about valuation (UI).

(Laughs)

I mean, that's for you guys in the corporate world, you know that (UI).

(Noise)

(Laughs) Yeah.

I mean.

Yeah.

But, the issue is this, right?

Huh.

So then what it does is that it make Wimax a reality.

It makes ... (IA)

Hello? Yeah. Yeah, can you hear me?

No. Let me call you from my, uh ... home phone, yeah. This is garbage. (Noise) I'll call you,

O.K. Bye.

I'll call you

(Dog barks)

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