0 TracFone Wireless, Inc. NARUC Presentation February 2015

1 TracFone Wireless, Inc. Who We Are Handset Based technology – you actually “track” your minutes 5 th Largest Wireless provider in the US Based in Miami full time employees We’ve Grown to over 25 million customers in 17 years TracFone Wireless Inc. is the largest no-contract cell phone provider in the US, and has been since its inception 17 years ago. We have over 2x as many customers as the nearest competitor brand What We Stand For TracFone believes cell phone ownership is a need, not a privilege, and is committed to making cell phones available to everyone Our seven brands deliver unparalleled access for the underserved

2 SafeLink Wireless ® Requested ETC approval upon invitation by the FCC Approved as an ETC in 2008 Pioneered free service Has always requested last 4 SSN and DOB Has always had a 60 day nonusage policy Has always had annual verification of entire subscriber base

3 SafeLink Wireless ® Lifeline program disbursements began dropping immediately after Lifeline Reform Order went into effect. Overall, program disbursements were more than $450 million lower in 2014 than 2012.

4 SafeLink Wireless ® As the Nation’s Leading Lifeline Provider, TracFone is Committed to Meaningful Program Reforms which Address and Prevent Fraud and has Submitted Several Important Fraud Prevention Measures which Remain Pending  Require Lifeline providers to retain and make available for audit eligibility documentation provided by applicants. (petition filed in May 2012).  Prohibit in-person handset distribution, a practice which has been the source of many program criticisms. (petition filed in May 2013).  Revise rule to allow texting to be considered usage for purposes of the deenrollment for 60 days’ non-usage rule (petition filed October 1, 2014).  Revise USAC household worksheet process to prevent households from receiving multiple Lifeline-supported services.

5 SafeLink Wireless ®

6 National Lifeline Accountability Database TracFone always operated on a one-per-address or one-per- household basis which has now been replaced with the USAC Household worksheet Intra-carrier duplication cannot be prevented without a database TracFone supported the development of a duplicates database Current Status: Fully Operational

7 SafeLink Wireless ® Broadband Pilot Lessons Learned  High level of consumer interest in affordable broadband  Increasingly seen as basic necessity  Both device and service cost major barrier