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2 From modest beginnings as a small telephone exchange in Oak Ridge, Louisiana, serving fewer than 100 customers. CenturyTel has grown to become one of the leading providers of integrated communications services for homes and businesses.CenturyTel

3 Stock Information  Publicly traded on the new York stock exchange under the symbol CTL.  In 1999, CenturyTel was added to the S&P 500 index.

4 CenturyTel Overview  Focus on rural, suburban & smaller city markets  $5B market capitalization  $1.7B in operating revenue  8th largest local exchange  8th largest cellular company  3 million customers  21 states

5 CenturyTel offers:  Local  Wireless  Long Distance  Internet Services  High Speed Access – Local and Regional

6 CenturyTel Properties 2000

7 CenturyTel’s Growth Strategies  Continue strong internal revenue and customer growth in core businesses  Leverage customer base by bundling additional services  Utilize core competencies and network infrastructure to cultivate new revenue streams  Pursue acquisitions to expand market clusters - consolidator of rural telephony

8 Why LMDS ?  Opportunity to expand existing wireline & wireless market clusters  Opportunity to complement wireline and wireless markets with broadband wireless services  Technology to provide “fiber-like” broadband services  Technology to provide bundled services

9 LMDS A-Block LMDS B-Block k CenturyTel LMDS BTAs

10 LMDS and Fiber Overlay

11 LMDS Market Statistics  Market population comprised of 55% urban and 45% rural  Estimated number of businesses covered over 144,000  94% have less than 50 employees  Estimated voice & data services market for businesses = $2.0 billion

12 Key Market Trends  Rapidly expanding high speed internet access  Businesses want to minimize their communication suppliers  Expanding IP telephony  Aggressive competition for local access  Inability of the local exchange companies (RBOCs) to deliver timely service

13 LMDS Strategy  Leverage existing infrastructure  Offer value added services  Voice and Data  LAN to LAN, VPN, High Speed Internet, etc.  Complement existing services  Fiber networks  Cellular/PCS/Internet backhaul

14 LMDS Strategy  Utilize both point-to-point and point- to-multipoint technologies  Targeted hub build-outs  Concentrated business areas  Utilize existing cellular sites  Obtain roof right options  Build with our customers

15 LMDS Equipment Selection  Cost performance  Frequency division – FDMA  Time division – TDMA  Backhaul requirements  Service capabilities  DS-1, DS-3 &OC-X  10/100BaseT  QOS capable  Ease of deployment  Manufacturing capabilities  Supplier reputation

16 Why Ericsson?  System architecture  Cross hub traffic management  Radio link  ATM  TDMA  QOS capable  Equipment “look and feel”  Cost  Industry reputation

17 LMDS Status  Licenses obtained  Vendor equipment selection complete  Point-to-point system  Point-to-multipoint  One market in service  Additional markets being planned  Finding customers

18Challenges  Roof rights - $s  Competition  UNEs with Collocation  Other CLEC facilities  Utilization per site  Additional applications  10/100BaseT

19 Our Opportunity! CenturyTel Shreveport, Louisiana, USA

20 Web: Phone: (318) Fax: (318) Contact: Doug Bieniek Vice President – Application Development

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