Sprints Network Vision January 24, 2013 Initiative Update - PDF document

Sprint’s Network Vision January 24, 2013 Initiative – Update Presented to TFI Presented to TFI By: Michael Heaton, Duff & Phelps LLC Table of Contents I. Sprint’s Network Vision Initiative I. Sprint’s Progress during 2012 II II. Sprint s Goals for 2013 and Beyond Sprint’s Goals for 2013 and Beyond III. Softbank and Clearwire (Dish) IV. Questions Duff & Phelps 2 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 1

SECTION I Sprint’s Network Vision Initiative Duff & Phelps 3 Sprint’s Network Vision Initiative  Move to a single multi-standard converged mobile network Duff & Phelps 4 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 2

Sprint’s Network Vision Initiative  Move to a single multi-standard converged mobile network  Reduce the number of cell sites in the system by 22,000 Duff & Phelps 5 Sprint’s Network Vision Initiative  Move to a single multi-standard converged mobile network  Reduce the number of cell sites in the system by 22,000  Enhance 3G CDMA as well as 4G LTE coverage to reduce roaming charges Duff & Phelps 6 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 3

Sprint’s Network Vision Initiative  Move to a single multi-standard converged mobile network  Reduce the number of cell sites in the system by 22,000  Enhance 3G CDMA as well as 4G LTE coverage to reduce roaming charges  Retire the iDEN network and move customers to the Sprint Direct Connect Service on the CDMA network Duff & Phelps 7 SECTION II Sprint’s Progress During 2012 Duff & Phelps 8 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 4

Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs Duff & Phelps 9 Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months Duff & Phelps 10 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 5

Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months  Sprint has improved 3G coverage, call quality and data speeds in S i t h i d 3G ll lit d d t d i more than 70 markets Duff & Phelps 11 Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months  Sprint has improved 3G coverage, call quality and data speeds in S i h i d 3G ll li d d d i more than 70 markets  Sprint has shut down 9,600 iDEN sites and still plans to shut down the iDEN network by June 30, 2013 Duff & Phelps 12 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 6

Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months  Sprint has improved 3G coverage, call quality and data speeds in S i t h i d 3G ll lit d d t d i more than 70 markets  Sprint has shut down 9,600 iDEN sites and still plans to shut down the iDEN network by June 30, 2013  Sprint surpassed the 1 million customer mark on its Sprint Direct Connect Service Duff & Phelps 13 Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months  Sprint has improved 3G coverage, call quality and data speeds in S i t h i d 3G ll lit d d t d i more than 70 markets  Sprint has shut down 9,600 iDEN sites and still plans to shut down the iDEN network by June 30, 2013  Sprint surpassed the 1 million customer mark on its Sprint Direct Connect Service  Approximately 60% of customers leaving iDEN went to the Sprint CDMA network in 2 nd and 3 rd quarters Duff & Phelps 14 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 7

Sprint’s Progress During 2012  Sprint launched 4G LTE in 49 markets covering 150 million POPs  Sprint has announced that nearly 150 markets will get Sprint 4G LTE in the coming months  Sprint has improved 3G coverage, call quality and data speeds in  Sprint has improved 3G coverage call quality and data speeds in more than 70 markets  Sprint has shut down 9,600 iDEN sites and still plans to shut down the iDEN network by June 30, 2013  Sprint surpassed the 1 million customer mark on its Sprint Direct Connect Service  Approximately 60% of customers leaving iDEN went to the Sprint CDMA network in 2 nd and 3 rd quarters  Sprint Launched 15 LTE and 3 Direct Connect devices in 2012 Duff & Phelps 15 SECTION III Sprint’s Goals for 2013 and Beyond Duff & Phelps 16 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 8

Sprint’s Goals for 2013 and Beyond  Sprints LTE coverage to be 250 million POPs by year end 2013 Duff & Phelps 17 Sprint’s Goals for 2013 and Beyond  Sprints LTE coverage to be 250 million POPs by year end 2013  To shut down the iDEN network by June 30, 2013 Duff & Phelps 18 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 9

Sprint’s Goals for 2013 and Beyond  Sprints LTE coverage to be 250 million POPs by year end 2013  To shut down the iDEN network by June 30, 2013  To close the purchase by Softbank by mid year Duff & Phelps 19 Sprint’s Goals for 2013 and Beyond  Sprints LTE coverage to be 250 million POPs by year end 2013  To shut down the iDEN network by June 30, 2013  To close the purchase by Softbank by mid year  To close the purchase of Clearwire after the Softbank stock purchase To close the purchase of Clearwire after the Softbank stock purchase takes place Duff & Phelps 20 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 10

SECTION IV Softbank and Clearwire (Dish) Duff & Phelps 21 Softbank and Clearwire (Dish)  Softbank will purchase a 70% ownership in Sprint for $20.1 billion. $12.1 billion will go to Sprint shareholders and the remaining $8 billion will go toward capital investment  Sprint has offered $2.97 per share (approximately $2.2 billion) to buy the p $ p ( pp y $ ) y 49% of Clearwire that it does not already own  Dish has offered to purchase Clearwire for approximately $3.30 per share. They want to obtain about 24% of Clearwire’s spectrum Duff & Phelps 22 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 11

Questions Duff & Phelps 23 Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Heaton or TFI regarding reproducing presentation material. 12