1

$267.2

$60.8

$291.2

$75.7

$322.2

$94.2

$356.6

$106.4

$395.0

$120.4

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

To

tal R

even

ues

in B

illio

ns

1994 1995 1996 1997 1998*

Communications Sector of the U.S. Economy

Communications Services Communications Equipment

* 1998 figures are estimates from the the 1998 Multimedia Telecom Market Review and from IAD.Sources: Census Bureau, Statistical Abstract of the U.S. and Annual Survey of Communications Services; 1998 Multimedia Telecom Market Review

2

$0.4 $0.5$0.9

$1.2

$3.1

$5.7

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Rev

enu

es in

Bill

ion

s

1993 1994 1995 1996 1997 1998*

Local Service Competitor Revenues

Revenues of New Local Service Competitors

* 1998 figure is an ALTS estimate.Source: IAD, Local Competition Report. Local service competitors refer those identifying themselves as CAPs and/or CLECs on their TRS Worksheets submitted to the FCC.

3

Charting the Growth in the Mobile Telephone Industry 1993 - 1998

UPUP380%380%

From From 16 Million 16 Million

Subscribers Subscribers in 1993in 1993

UPUP284%284%

From 39,775 From 39,775 Jobs in 1993Jobs in 1993

DOWNDOWN35%35%

From $61.48From $61.48per Month in per Month in

19931993

UPUP359%359% From $14 From $14

Billion as of Billion as of 19931993

DOWNDOWN68%68% From 24From 24

Months for Months for ComparativeComparative

HearingsHearings

Subscribers JobsCapital

Investment

AverageSubscriber

Bill

Wait forLicenses

60.8 MillionSubscribers in 1998

113,111 Jobs in1998

$50.2 BillionInvested as of 1998

$39.88 Dollars Per Month

in 1998

7.8 Months From Application to Grant

Source: CTIA June 1998 Survey; FCC Report to Congress on Spectrum Auctions, September 30, 1997.

4

13.5

5.8

13.2

5.5

12.4

5.4

12

5.1

11.5

4.6

10.2

4.2

0

2

4

6

8

10

12

14

Ave

rag

e P

rice

/Co

st p

er M

inu

te, i

n C

ents

1992 1993 1994 1995 1996 1997

LD Consumer Prices and Access Costs are Falling*

LD Consumer Prices Access Costs

* As measured in average cents per conversation minute. LD consumer prices are based on all interstate and international calls. Access costs include all interstate and international access costs paid by IXCs to the LECs.Source: IAD, Telecommunications Industry Revenue Report. Prices shown are per conversation minute. Year-end 1998 data is not avail.

5

Average Rate per Minute* for an International Call 1994-1997

$0.91$0.84

$0.70$0.64

1994 1995 1996 1997$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Source: FCC Section 43.61 data (excluding reorigination and country direct and beyond). Full-year 1998 data is not yet available.

* Consumers can obtain even lower per minute rates under some rate plans

6

DTH/DBS/C-Band GROWTH

3.47 Million

5.09 Million

7.25 Million

9.28 Million10.62 Million

June1995

June1996

June1997

June1998

December1998

From June, 1995 to December, 1998 satellite home subscribers grew 206% and now exceed 10.5 million.

Source: DBS Investor

(# of Subscribers)

7

DTV Build-Out Schedule

0

20

40

60

80

100

120

Dec-98 May-99 Nov-99 May-02 May-03

% o

f P

op

ula

tio

n w

ith

DT

V S

erv

ice

0

200

400

600

800

1000

1200

1400

1600

1800

Percent of Population with DTV Service Stations on AirNOTE: 38 of the first 40 stations scheduled for DTV have been granted construction permits