The Path to Broadband Connectivity: Arizona's Right-of-Way DAS Proposal

1. ARIZONA The Path to Broadband Connectivity RIGHT-OF-WAY DAS PROPOSAL by Newpath Networks ARIZONA

2. Arizona Telecom Providers and Stakeholders Request for Information Sponsored By Arizona County Supervisor’s Association League of Arizona Cities and Towns The Governor’s Council on Innovation and Technology 2005

3. As you look at our overall industry, we are going to approach 90% penetration this year. At the end of 2007, there were 263 million mobile telephone subscribers in the United States, up from 241.8 million at the end of 2006. The additional 21.2 million subscribers represent an increase of almost nine percent in 2007. The nationwide mobile penetration rate at year end 2007 rose to approximately 86 percent of the approximately 305.6 million people in the United States. Federal Communications Commission

4. Our Macro Cell Build-out Plan AT&T is enhancing it’s 3G network to deliver the best wireless broadband experience • Speed • AT&T is deploying HSPA 7.2Mbps, doubling the existing peak theoretical speed of the 3G network. • Nation-wide deployment will start in fall 2009 • In 2010 AT&T will commence trials on LTE, the next generation in wireless broadband • Commercial launch of LTE markets will begin in 2011, delivering the fastest combination of speed with 3G/LTE • Coverage • 850MHz radio frequency has been deployed in about 50% of the 3G network footprint –providing improved overall coverage and in-building reception • Additional deployment of 850MHz will continue through 2009 to increase coverage • AT&T is deploying about 2,100 new cell sites across the country, • 3G expansion will continue and cover over 20 additional major metro market areas in 2009 • 3G Microcell, which enhances in-building wireless coverage will begin trial this year • Capacity • AT&T is expanding bandwidth to cell sites through deployment of additional backhaul connections, including fiber-optic. • This work provides critical connections to the global IP backbone network, for higher broadband speeds, enabling both HSPA 7.2Mbps and LTE Capital investments for these projects fits into AT&T’s total capital expenditure for 2009, targeted at $17 - $18 billion Page 4

5. The 700Mhz Spectrum • The 700 MHz spectrum that AT&T acquired via the purchase of Aloha and from the recent national spectrum auctions provides not only additional spectrum for 4G, but the higher power limits permit flexibility for large-radius cells and innovative broadcast solutions, should AT&T so choose. • CEO Ralph de la Vega pointed out that the company has enough wireless spectrum to cover 87 percent of the total U.S. population and 100 percent of the nation’s top 200 cities. Also during the call, AT&T officials said the 4G LTE wireless broadband networks based on the 700 MHz spectrum will roll out in 2012. De la Vega said the company has a road map to push the 3G speeds quite high — up to 14.4 megabits per second.

6. Micro Cell Strategy DAS

14. ARIZONA The Path to Broadband Connectivity During the next few years Arizona will see: • AT&T ‘s wireless network moving to HSPA+ to enable the 7.2 network • Upgrades to add the 850mhz capability for voice & data • The beginning of the LTE build-out • Upgrades to the 700 mhz spectrum coupled with LTE to an 14.4 network • With Macro cell and Micro cell builds completed, Arizona will see up to 90% of the state covered by wireless broadband at 14mbs or higher throughput . Thank You