CenturyTel LMDS

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CenturyTel

• From modest beginnings as a small telephone
  exchange in Oak Ridge, Louisiana, serving fewer
  than 100 customers. CenturyTel has grown to
  become one of the leading providers of integrated
  communications services for homes and businesses.

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Stock Information

• Publicly traded on the new York stock exchange
  under the symbol CTL.
• In 1999, CenturyTel was added to the SP 500
  index.

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CenturyTel Overview

• Focus on rural, suburban smaller city markets
• 5B market capitalization
• 1.7B in operating revenue
• 8th largest local exchange
• 8th largest cellular company
• 3 million customers
• 21 states

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CenturyTel offers

• Local
• Wireless
• Long Distance
• Internet Services
• High Speed Access Local and Regional

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CenturyTel Properties 2000
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CenturyTels Growth Strategies

• Continue strong internal revenue and customer
  growth in core businesses
• Leverage customer base by bundling additional
  services
• Utilize core competencies and network
  infrastructure to cultivate new revenue streams
• Pursue acquisitions to expand market clusters -
  consolidator of rural telephony

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Why LMDS ?

• Opportunity to expand existing wireline
  wireless market clusters
• Opportunity to complement wireline and wireless
  markets with broadband wireless services
• Technology to provide fiber-like broadband
  services
• Technology to provide bundled services

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CenturyTel LMDS BTAs
LMDS A-Block
LMDS B-Block
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LMDS and Fiber Overlay
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LMDS Market Statistics

• Market population comprised of 55 urban and 45
  rural
• Estimated number of businesses covered over
  144,000
• 94 have less than 50 employees
• Estimated voice data services market for
  businesses 2.0 billion

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Key Market Trends

• Rapidly expanding high speed internet access
• Businesses want to minimize their communication
  suppliers
• Expanding IP telephony
• Aggressive competition for local access
• Inability of the local exchange companies (RBOCs)
  to deliver timely service

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LMDS Strategy

• Leverage existing infrastructure
• Offer value added services
• Voice and Data
• LAN to LAN, VPN, High Speed Internet, etc.
• Complement existing services
• Fiber networks
• Cellular/PCS/Internet backhaul

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LMDS Strategy

• Utilize both point-to-point and
  point-to-multipoint technologies
• Targeted hub build-outs
• Concentrated business areas
• Utilize existing cellular sites
• Obtain roof right options
• Build with our customers

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LMDS Equipment Selection

• Cost performance
• Frequency division FDMA
• Time division TDMA
• Backhaul requirements
• Service capabilities
• DS-1, DS-3 OC-X
• 10/100BaseT
• QOS capable
• Ease of deployment
• Manufacturing capabilities
• Supplier reputation

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Why Ericsson?

• System architecture
• Cross hub traffic management
• Radio link
• ATM
• TDMA
• QOS capable
• Equipment look and feel
• Cost
• Industry reputation

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LMDS Status

• Licenses obtained
• Vendor equipment selection complete
• Point-to-point system
• Point-to-multipoint
• One market in service
• Additional markets being planned
• Finding customers

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Challenges

• Roof rights - s
• Competition
• UNEs with Collocation
• Other CLEC facilities
• Utilization per site
• Additional applications
• 10/100BaseT

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Our Opportunity!

• CenturyTel
• Shreveport, Louisiana, USA

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Web www.centurytel.com Phone (318)
388-9765 Fax [phone] Email
doug.bieniek_at_centurytel.com Contact Doug
Bieniek Vice President Application Development
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