2. Operator Metrics Iain Gillott (512) 263-5682 iain@iGR-Inc.com

3. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com North American Subscribers by Technology, 2007 - 2012 Causes of Churn 1.Network Quality/Coverage 2.Customer Service 3.Price

4. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com North American ARPU, 2007 - 2012 % Wireless Data Users Cost per gross add: $320 up Cash cost per month: $28 - $35

5. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Current Cell Phone Use & Type Postpaid consumers aged 25 - 65 70% Consumers say they will buy a Smartphone next time…

6. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Cellular Phone Prices Considered Postpaid consumers aged 25 - 65 Early adopters - Higher ARPU - Higher data spending - Subscribers operators die for Price-driven consumers - Lower ARPU - Lower data spending

7. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Consumer Spending Postpaid consumers aged 25 - 65 ARPU Text messaging ARPU Unlimited rate plans appeal

8. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Text messaging rate plan Postpaid consumers aged 25 - 65 Increases in next 24 months Decreases in next 24 months

9. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Consumers under contract Postpaid consumers aged 25 - 65 currently under contract Remaining length of contract Expected action at the end of the contract 1Q2008 Survey: 78% under contract

10. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Family Rate Plans Postpaid consumers aged 25 - 65 Use of Family Rate Plan? Number of Lines

11. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com True Cost of Family Rate Plans Additional lines to family rates are marketed at ~$10 per month Not all postpaid plans allow multiple lines Usually have to upgrade to higher rate plan to add lines Need additional minutes to support multiple lines Need additional SMS/data to support additional lines Average industry ARPU $53.20 57 percent of survey parents use family rate plans Average lines 2.86 (including parent)

12. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Parent ARPU U.S., 2007 $41.15 Parents “Supersize” by moving up to the next tier, with more expensive minutes, costing $41.15 before accounting for the additional line fees

13. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com True Cost of Family Rate Plans Average ARPU for Parent with Family Rate Plan Lines fees for additional lines (assumes 1.86 addtl lines) Addtl ARPU for Parent with Family Rate Plan Cost per family plan line: 126.34/2.86= $44.18 Incremental cost per addtl kid line: $65.29/1.86 = $35.10 Total: $126.34 Total: $65.29

14. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com CSR Activities Industry Averages Multiple screens focused around functions Customer Account Payment Dispute Collections Shop-Quote-Order Usage and Bills User & Agent CSR Handles 25 - 35 subscribers per day Average call length ~6 mins CSR Tasks Add interaction note ~40 per day Bill inquiry ~35 per day Order service for new customer 15 per day Payment ~10 per day Avg cost per minute for live CSR: ~$2 - $2.50

15. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Customer Care Cost Factors Voice/Data Data products are new and inherently more complex Multiple reasons why an application will not run Content and Media As range of content increases, costs increase Problems downloading content lead to calls to customer care Handset/Smartphone More complex handsets generate more calls to customer care Average smartphone customer care call 4 times longer than conventional handset Post/Prepaid Prepaid customers call to replenish accounts Usually handled by IVR Complexity of IVR IVR use is high IVR must be easy to use to be effective Verizon Wireless redesigning interface Sprint redesigned last year Sophistication More aggressive operators are likely to push IVR and Web customer care more Not a factor of size but of attitude Age Younger subscribers will use self-help more Younger subscribers more demanding and more likely to churn ARPU Higher ARPU subscribers call customer care more often and are more demanding

16. Source: iGillottResearch Inc, 2008 Insight and analysis for the changing wireless world www.iGR-inc.com Winners & Losers Winners AMDOCS, Convergys, BPO Directly drive costs Customer care critical Verizon Wireless, AT&T Driving down churn rates ‘Own’ image for network quality/coverage Leap, Metro PCS Unlimited business approach validated by major operators Losers Sprint’s churn rate is still climbing High cost distribution channels Not just distribution cost… …impact on churn through poor service