MOBILE INPUT/ WIRELESS UPSTREAM SERVICES EDGE/DOWNSTREAM SEGMENTS

SPECTRUM(Section VII.A.1)

TOWERS(Section VII.A.2)

NETWORK EQUIPMENT(Section VII.A.2)

BACKHAUL(Section VII.A.3)

INPUT/UPSTREAMSEGMENTS

EDGE/DOWNSTREAMSEGMENTS

MOBILE WIRELESSSERVICES(Sections III-VI)

DE

VIC

ES

OP

ER

ATI

NG

SYS

TEM

S APPS(Section VII.B.2)

CONTENT(Section VII.B.2)

MOBILECOMMERCE(Section VII.B.3)

VOICE

DATA

MESSAGING

(Section VII.B.1)

SPECTRUM(Section VII.A.1)

TOWERS(Section VII.A.2)

NETWORK EQUIPMENT(Section VII.A.2)

BACKHAUL(Section VII.A.3)

INPUT/UPSTREAMSEGMENTS

EDGE/DOWNSTREAMSEGMENTS

MOBILE WIRELESSSERVICES(Sections III-VI)

DE

VIC

ES

OP

ER

ATI

NG

SYS

TEM

S APPS(Section VII.B.2)

CONTENT(Section VII.B.2)

MOBILECOMMERCE(Section VII.B.3)

VOICE

DATA

MESSAGING

(Section VII.B.1)

Mobile Wireless Subscribers and Connections Year

Mobile Wireless

Connections Mobile

Telephone Subscribers

Mobile Internet

SubscribersNRUF CTIA Form 477

Form 477

Total Net

Adds TotalNet

Adds Total Net

Adds TotalNet

Adds2001 128.5 n/a 128.4 18.9 124.0 23.02002 141.8 13.3 140.9 12.4 138.9 14.92003 160.6 18.8 158.7 18 157.0 18.12004 184.7 24.1 182.1 23.4 181.1 24.12005 213.0 28.3 207.9 25.8 203.7 22.62006 241.8 28.8 233.0 25.1 229.6 25.92007 263.0 21.2 255.4 22.4 249.3 19.72008 279.6 16.6 270.3 14.9 261.3 12.0 26.52009 290.7 11.1 285.6 15.3 274.3 13.0 55.8 29.3

Average Voice MOUs Per Subscriber Per Month

623

708692

714734

769751

708735

696

0

100

200

300

400

500

600

700

800

900

Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09

Ave

rage

MO

Us

Per S

ubsc

riber

Pe

r Mon

th

2006 2009200820072005

Wireless Voice Revenue per Minute: 1993-2010 -35%

-30%

-25%

-20%

-15%

-10%

-5%

0%$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H2010

Rat

e of

Pric

e D

eclin

e

$ pe

r Voi

ce M

OU

$99.64$106.68 $111.89

$117.67 $118.28 $113.16

$1.32

$2.99

$5.67

$8.98$11.36

$3.28

$5.59

$9.54

$14.25$20.97

$41.51

$104.25

$115.26

$127.11

$140.90

$150.60 $154.67

$50

$80

$110

$140

$170

2004 2005 2006 2007 2008 2009Tota

l Ind

ustr

y R

even

ues

($ B

illio

n)

Voice Revenues Text Messaging Revenues Data Revenues

$47.23$44.17

$41.21$39.32

$36.98

$33.54

$0.63$1.24

$2.09$3.00

$3.55

$1.55$2.31 $3.52

$4.76$6.56

$12.30

$49.41$47.72 $46.82 $47.08 $47.09 $45.85

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

2004 2005 2006 2007 2008 2009

Mon

thly

Ave

rage

Rev

enue

Per

Use

r (A

RPU

)

Voice ARPU Text Messaging ARPU Data ARPUSource: CTIA & Analyst Data, FCC Voice ARPU Calculation incl. Toll

86

115.7

26.5

55.8

3

22

51

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009

Mill

ions

Mobile Wireless Devices in Use Capable of +200 kbps

Mobile Wireless Internet Access Subscribers

Mobile Wireless Connections

Mobile Market Cross Countries Country % POP Prepay%

Min/mo P Rev Data%

Receiving Party Pays USA 93% 19% 824 $0.04 $49.91 29.3%Canada 68% 20% 426 $0.09 $55.14 22.1%Singapore 144% 50% 380 $0.06 $33.01 31.0%Calling Party Pays UK 129% 59% 194 $0.11 $33.52 33.0%Germany 132% 56% 109 $0.16 $22.08 29.8%Italy 147% 87% 141 $0.15 $29.12 26.1%Sweden 131% 35% 211 $0.10 $31.11 25.3%France 96% 33% 237 $0.15 $48.40 23.7%Finland 144% 13% 218 $0.13 $33.52 20.5%Japan 88% 1% 137 $0.25 $58.06 44.5%S.Korea 99% 3% 311 $0.09 $33.63 19.1%Australia 115% 42% 222 $0.14 $47.27 36.1%

3,451

2,8482,717

2,6072,718

2,070

2,543 2,4982,407

0

1,000

2,000

3,000

4,000

0 - 100 100 - 200 200 - 300 300 - 400 400 - 500 500 - 600 600 - 700 700 - 800 800 - 900

Med

ian

HH

I of E

As

Population Density of EAs

Percent of Adults Using Wireless Internet Connections (Wi-Fi or Mobile)1

1 Id.

73%

61%

44%

17%

84%

69%

49%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18-29 30-49 50-64 65+

Age

Apr-09

May-10

Percentage Spectrum Holdings by Provider

Licensee

700 MHz

Cellular(850

MHz)

SMR (800/900

MHz)

PCS (1.9

GHz)

AWS (1.7/2.1 GHz)

BRS (2.5

GHz)

EBS Leases

(2.5 GHz)

Verizon Wireless 42.8% 47.7% 0.0% 15.1% 14.9% 0.0% 0.0%AT&T 24.4% 43.6% 0.0% 26.1% 7.9% 0.0% 0.0%Sprint Nextel 0.0% 0.0% 93.0% 26.8% 0.0% 0.0% 0.0%Clearwire 0.0% 0.0% 0.0% 0.0% 0.0% 86.3% 62.0%T-Mobile 0.0% 0.0% 0.0% 19.5% 27.4% 0.0% 0.0%MetroPCS 0.5% 0.0% 0.0% 2.6% 9.2% 0.0% 0.0%US Cellular 2.8% 4.4% 0.0% 1.8% 2.1% 0.0% 0.0%Leap 0.0% 0.0% 0.0% 2.2% 8.7% 0.0% 0.0%Other 29.5% 4.3% 7.0% 5.8% 29.8% 13.7% 38.0%

US MARKET CONSOLIDATION 1999 2004 2010

SBC AT&T

Vodafone Bell Atlantic

GTE Sprint

BellSouth Alltel Nextel USCell

PrimeCo Omnipoint

Voicestream Western

14.5 12.5 11.9 10.0 9.3 7.5 7.0 6.5 5.9 3.4 1.8 1.2 1.1 1.1

Verizon Cingular AT&T Sprint

T-Mobile Nextel Alltel

USCell Metro PCS

Top 3

24.8 15.9 14.5 10.5 8.7 8.5 5.3 2.9

1999: 39%

31.9

29.8 16.9 12.1

2.2 2.3

2010: 79% Prop: 91%

4.5%

13.7%

24.3%

36.2%

50.2%

63.6%

76.3%

27.1%

76.4%

89.6%

94.3%

97.2%

99.2%

99.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

7 or more

6 or more

5 or more

4 or more

3 or more

2 or more

1 or more

Mobile Wireless Voice Coverage (%)

Num

ber o

f Ser

vice

Pro

vide

rs w

ith C

over

age

Total U.S. Population Total U.S. Square Miles