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

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

Sprint’s Network Vision Initiative – Update

Presented to TFI

January 24, 2013

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 Sprint’s Goals for 2013 and Beyond II. Sprint s Goals for 2013 and Beyond

• III. Softbank and Clearwire (Dish)
• IV. Questions

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

Sprint’s Network Vision Initiative

SECTION I

Duff & Phelps 3

Sprint’s Network Vision Initiative

• Move to a single multi-standard converged mobile network

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

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

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

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

Sprint’s Progress During 2012

SECTION II

Duff & Phelps 8

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

Sprint’s Progress During 2012

• Sprint launched 4G LTE in 49 markets covering 150 million POPs

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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

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

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 S i t h i d 3G ll lit d d t d i

• Sprint has improved 3G coverage, call quality and data speeds in

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 S i h i d 3G ll li d d d i

• 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

Duff & Phelps 12

7

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

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 S i t h i d 3G ll lit d d t d i

• 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

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 S i t h i d 3G ll lit d d t d i

• 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 2nd and 3rd quarters

Duff & Phelps 14

8

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

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 2nd and 3rd quarters

• Sprint Launched 15 LTE and 3 Direct Connect devices in 2012

Duff & Phelps 15

Sprint’s Goals for 2013 and Beyond

SECTION III

Duff & Phelps 16

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

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

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

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

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

Softbank and Clearwire (Dish)

SECTION IV

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

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

Questions

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