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Dick LynchDick Lynch

MIT Sloan School of Management

October 1, 2003

MIT Sloan School of Management

October 1, 2003

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Wireless devices will be

the centerpiece of information

and services for customers

anytime, anywhere.

Wireless devices will be

the centerpiece of information

and services for customers

anytime, anywhere.

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Wireless EnvironmentWireless Environment

Growth

Consolidation

Pricing

Spectrum

Growth

Consolidation

Pricing

Spectrum

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Strategic ImperativesStrategic Imperatives

Subscriber Growth

Revenue Growth

OCF Growth

Results-focused culture

Subscriber Growth

Revenue Growth

OCF Growth

Results-focused culture

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Strong FundamentalsStrong Fundamentals

Quality of ...

Subscriber base

Network

Cost structure

Customer value proposition

Profitability

Quality of ...

Subscriber base

Network

Cost structure

Customer value proposition

Profitability

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Strong FundamentalsStrong Fundamentals

Quality of Base

Most subs in US (34.6 M)

Base: Primarily contract

Churn: 1.7% (2Q03)

ARPU accretion

Data Subs: 6.7 M

Quality of Base

Most subs in US (34.6 M)

Base: Primarily contract

Churn: 1.7% (2Q03)

ARPU accretion

Data Subs: 6.7 M

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Strong FundamentalsStrong Fundamentals

Quality of the Network

Capex: $4.4 $4.7B

Highly efficient: cost & capacity 100% POPs digital

Early provision of new products

Quality of the Network

Capex: $4.4 $4.7B

Highly efficient: cost & capacity

100% POPs digital

Early provision of new products

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Strong FundamentalsStrong Fundamentals

Low Cost Structure

Merger integration Systems conversions Procurement flexibility

National Company Branding Standardization

Distribution

Customer Service

Low Cost Structure

Merger integration Systems conversions Procurement flexibility

National Company Branding Standardization

Distribution

Customer Service

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Strong FundamentalsStrong Fundamentals

Value Proposition for the Customer

Pricing National, regional

Simplified

Products

Voice

Data

Loyalty

Value Proposition for the Customer

Pricing National, regional

Simplified

Products

Voice

Data

Loyalty

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Core

IP

Netwo

rk

CircuitS

witched

Netw

ork

Messaging

Telematics

Intl Roaming

Location Svcs

OTA

WIN

VPN

Compression

Products and Services

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Products and Services

Customer Applications

PC Connection Client

Corporate

Ethernet

Corporate

802.11

Public Hot

Spot (802.11)

VZW

1X EV-DO

(Future)

Enterprise Applications

VZW

1XRTT

Internet

Connectivity transparency is a must

Firewall

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Enterprise Service Platform

Wired Network

Wireless Network

Customer Prem

AAA Server

1XEVDO 1XRTT 802.11

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Consumer Service Platform

Voice Service

Push-to-Talk

SMS Messaging

IM

Video Clips

MP3 Downloads

Get It Now

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In wireless, the right technology

is the platform to success..