Proforma IS

Years ($ MM) 2007 2008 2009 2010

Operating Results
Service Revenue $3,679 $4,194 $4,782 $5,379
Plus - Equipment Sales $267 $315 $359 $403
Synergy Revenue $0 $0 $0 $0
Total Revenue $3,946 $4,509 $5,141 $5,782
Less - System Operating Expenses $717 $902 $1,028 $1,157
Less - Cost of Equipments Sold $640 $755 $861 $968
Less - Selling, General & Administrative $1,556 $1,804 $2,056 $2,313
Synergy Savings $0 $0 $0 $0
EBITDA $1,033 $1,048 $1,196 $1,345
Less - Depreciation & Amortization $582 $705 $804 $867
EBIT $451 $343 $392 $477
Less - Interest Expense $85 $199 $183 $166
Plus - Equity in Earnings of Affiliates $90 $0 $0 $0
Plus - Gains (Losses) on Investments $83 $0 $0 $0
Plus - Other Income $7 $0 $0 $0
EBT $546 $144 $209 $311
Less - Taxes $217 $57 $84 $125
Income Before Minority Interest $330 $86 $125 $187
Less - Minority Interest $15 $0 $0 $0
Net Income $315 $86 $125 $187
 2011 2012

$5,917 $6,331
$444 $475
$0 $0
$6,361 $6,806
$1,272 $1,361
$1,065 $1,140
$2,544 $2,722
$0 $0
$1,479 $1,582
$922 $953
$557 $630
$148 $128
$0 $0
$0 $0
$0 $0
$409 $501
$164 $201
$246 $301
$0 $0
$246 $301
Proforma BS

Years ($ MM) 2007 2008 2009 2010 2011 2012

Assets
Cash & Cash Equivalents 204.53 -186.49 -120.97 -161.05 -165.89 -2,314.03
Marketable Securities 16.35 16.35 16.35 16.35 16.35 16.35
Accounts Receivable 435.50 521.90 594.96 669.33 736.26 787.80
Inventory 100.99 134.97 153.86 173.10 190.41 203.73
Prepaid Expenses 41.59 46.91 53.48 60.17 66.19 70.82
Deferred Taxes 18.57 18.57 18.57 18.57 18.57 18.57
Other Current Assets 16.23 16.23 16.23 16.23 16.23 16.23
Total Current Assets 833.75 568.44 732.48 792.69 878.11 -1,200.53

Property, Plan & Equipment 2,595.10 2,521.14 2,436.83 2,436.83 2,484.54 2,586.64
Licenses 1,482.45 1,482.45 1,482.45 1,482.45 1,482.45 1,482.45
Customer Lists 15.38 15.38 15.38 15.38 15.38 15.38
Marketable Equity Securities - - - - - -
Investments in Affiliated Entities 157.69 157.69 157.69 157.69 157.69 157.69
Long Term Note Receivable 4.42 4.42 4.42 4.42 4.42 4.42
Goodwill 491.32 491.32 491.32 491.32 491.32 491.32
Other Long Term Assets 31.77 31.77 31.77 31.77 31.77 31.77
Total Assets 5,611.87 5,272.60 5,352.34 5,412.55 5,545.68 3,569.13

Liabilities & Owners' Equity:

Accounts Payable 260.79 335.42 382.38 430.18 473.20 506.32
Deferred Revenue & Deposits 143.45 132.26 150.77 169.62 186.58 199.64
Accrued Liabilities 59.22 64.61 73.65 82.86 91.15 97.53
Taxes Payable 43.11 43.11 43.11 43.11 43.11 43.11
Deferred Taxes - - - - - -
Note Payable - - - - - -
Forward Contract - - - - - -
Derivative Liability - - - - - -
Other Current Liabilities 97.68 97.68 97.68 97.68 97.68 97.68
Total Current Liabilities 604.24 673.07 747.59 823.44 891.71 944.27

Long Term Debt 1,002.29 3,467.62 3,161.35 2,837.80 2,495.99 -

Forward Contracts - - - - - -
Derivative Liability - - - - - -
Deferred Tax Liability 554.41 554.41 554.41 554.41 554.41 554.41
Asset Retirement Obligation 126.84 126.84 126.84 126.84 126.84 126.84
Other Deferred Liabilities 84.53 84.53 84.53 84.53 84.53 84.53

Minority Interest 43.40 43.40 43.40 43.40 43.40 43.40

Common Stock & Paid-In Capital 1,404.09

Retained Earnings 1,792.06
Total Equity 3,196.16 322.73 634.22 942.13 1,348.80 1,815.68
Total Liabilities & Owners' Equity 5,611.87 5,272.60 5,352.34 5,412.55 5,545.68 3,569.13
Proforma IS

Years ($ MM) 2007 2008 2009 2010 2011

Operating Results
Service Revenue $3,679 $4,194 $4,782 $5,379 $5,917
Plus - Equipment Sales $267 $315 $359 $403 $444
Synergy Revenue $0 $156 $269 $387 $570
Total Revenue $3,946 $4,665 $5,410 $6,169 $6,931
Less - System Operating Expenses $717 $933 $1,082 $1,234 $1,386
Less - Cost of Equipments Sold $640 $755 $861 $968 $1,065
Less - Selling, General & Administrative $1,556 $1,866 $2,164 $2,468 $2,772
Synergy Savings $0 $0 $13 $26 $53
EBITDA $1,033 $1,111 $1,317 $1,525 $1,760
Less - Depreciation & Amortization $582 $705 $804 $867 $922
EBIT $451 $405 $513 $658 $837
Less - Interest Expense $85 $199 $183 $166 $148
Plus - Equity in Earnings of Affiliates $90 $0 $0 $0 $0
Plus - Gains (Losses) on Investments $83 $0 $0 $0 $0
Plus - Other Income $7 $0 $0 $0 $0
EBT $546 $206 $330 $492 $690
Less - Taxes $217 $82 $132 $197 $276
Income Before Minority Interest $330 $124 $198 $295 $414
Less - Minority Interest $15 $0 $0 $0 $0
Net Income $315 $124 $198 $295 $414
 2012

$6,331
$475
$704
$7,510
$1,502
$1,140
$3,004
$76
$1,940
$953
$987
$128
$0
$0
$0
$859
$344
$515
$0
$515
Proforma BS

Years ($ MM) 2007 2008 2009 2010 2011

Assets:
Cash & Cash Equivalents $205 ($149) ($48) ($53) $2
Marketable Securities $16 $16 $16 $16 $16
Accounts Receivable $435 $522 $595 $669 $736
Inventory $101 $135 $154 $173 $190
Prepaid Expenses $42 $47 $53 $60 $66
Deferred Taxes $19 $19 $19 $19 $19
Other Current Assets $16 $16 $16 $16 $16
Total Current Assets $834 $606 $805 $901 $1,046

Property, Plan & Equipment $2,595 $2,521 $2,437 $2,437 $2,485

Licenses $1,482 $1,482 $1,482 $1,482 $1,482
Customer Lists $15 $15 $15 $15 $15
Marketable Equity Securities $0 $0 $0 $0 $0
Investments in Affiliated Entities $158 $158 $158 $158 $158
Long Term Note Receivable $4 $4 $4 $4 $4
Goodwill $491 $491 $491 $491 $491
Other Long Term Assets $32 $32 $32 $32 $32
Total Assets $5,612 $5,310 $5,425 $5,521 $5,714

Liabilities & Owners' Equity:

Accounts Payable $261 $335 $382 $430 $473
Deferred Revenue & Deposits $143 $132 $151 $170 $187
Accrued Liabilities $59 $65 $74 $83 $91
Taxes Payable $43 $43 $43 $43 $43
Deferred Taxes $0 $0 $0 $0 $0
Note Payable $0 $0 $0 $0 $0
Forward Contract $0 $0 $0 $0 $0
Derivative Liability $0 $0 $0 $0 $0
Other Current Liabilities $98 $98 $98 $98 $98
Total Current Liabilities $604 $673 $748 $823 $892

Long Term Debt $1,002 $3,468 $3,161 $2,838 $2,496

Forward Contracts $0 $0 $0 $0 $0
Derivative Liability $0 $0 $0 $0 $0
Deferred Tax Liability $554 $554 $554 $554 $554
Asset Retirement Obligation $127 $127 $127 $127 $127
Other Deferred Liabilities $85 $85 $85 $85 $85

Minority Interest $43 $43 $43 $43 $43

Common Stock & Paid-In Capital $1,404

Retained Earnings $1,792
Total Equity $3,196 $360 $707 $1,050 $1,517
Total Liabilities & Owners' Equity $5,612 $5,310 $5,425 $5,521 $5,714
 2012

($2,099)
$16
$788
$204
$71
$19
$16
($986)

$2,587
$1,482
$15
$0
$158
$4
$491
$32
$3,784

$506
$200
$98
$43
$0
$0
$0
$0
$98
$944

$0
$0
$0
$554
$127
$85

$43

$2,030
$3,784
Comparable Companies: D/E Equity Beta Unlevered Beta
Universal Mobile 0.58 0.86 0.64
Neuberger Wireless 0.42 0.89 0.71
Agile Connections 0.24 1.17 1.02
Big Country Communications 0.32 0.97 0.81
Rocky Mountain Wireless 0.44 1.13 0.89
Average 0.82

Cost of Debt, kd 0.06

Spread over Tresury Bond 0.01
Risk Free Rate 0.04
Market Premium 0.05 FCFF+TV 260.53
Cost of Unlevered Equity, ka 0.08 ITS 33.87
FCFF+TV+ITS 294.40
Effective Hurdle Rate (w/o Synergy) Firm Value 7,684.26
Effective Hurdle Rate (w Synegy) 0.08

NOPAT 592.52
Investment 4,198.45
RoI 0.14
Capex 1,055.01
Delta NWC 16.94
Dep 952.91
Reinvestment Rate 0.20
Terminal Growth Rate 0.03
367.75 370.34 432.74 9,338.34
79.77 73.23 66.32 59.02
447.53 443.57 499.06 9,397.36
Years ($ MM) 2008 2009 2010 2011 2012
PAT 123.79 197.61 295.30 413.92 515.56
Dep 705.23 803.96 867.44 922.38 952.91
Capex 631.27 719.65 867.44 970.09 1,055.01
Delta NWC 56.87 24.01 24.44 21.99 16.94
Debt Repaid 289.92 306.28 323.55 341.80 2,495.99
FCFE -149.05 -48.37 -52.69 2.41 -2,099.47

Unlevered Firm Value

Years ($ MM) 2008 2009 2010 2011 2012
EBIT(1-t) 243.45 307.45 394.78 502.45 592.52
Dep 705.23 803.96 867.44 922.38 952.91
Capex 631.27 719.65 867.44 970.09 1,055.01
Delta NWC 56.87 24.01 24.44 21.99 16.94
FCFF 260.53 367.75 370.34 432.74 473.48
TV 8,864.85
FCFF+TV 260.53 367.75 370.34 432.74 9,338.34
Unlevered Firm Value 7,419.43

Interest Tax Shields

ITS 33.87 79.77 73.23 66.32 59.02
PV of ITS 264.83

Total Firm Value 7,684.26