WVU Opportunity 1,200 current wireless users (no guarantees) 24,000 students 5,536 faculty & staff Athletic Sponsorships 3-year contract w/two additional (1) year terms

Process Requirements RF Coverage at all campus locations –Morgantown, WV –Charleston, WV –Parkersburg, WV –Keyser, WV –Jackson Mills, WV –Montgomery, WV Response due on or before Thursday, June 19, 2003 at 4:00 P.M. Eastern Time. Must submit (1) original and (6) copies of proposal. Pre-bid conference is Wednesday, May 28, 2003 at 2:00 P.M. Section “Vendors are required to assume all existing wireless service agreements now in place between WVU and any vendor. Transition must occur in the first six months of any agreement” (poison pill??)

Proposal Requirement (4) calling plans –Local –Regional –National –International No limit on the number of minutes of use under any calling plan. Unlimited (Data) two-way and text messaging. Unlimited long distance and no roaming charges. No cost for basic telephone or accessories. –Basic equipment equals handset, charger, battery, ear-bud and belt clip. –Non-basic equipment will be paid on a monthly basis. Dedicated account manager(s). Must use Appendix-1 in response. Determine $$ amount for sponsorships.

Sponsorships CPM calculations difficult to use.

Pre-Bid Conference Questions Why is WVU issuing the RFP? What does WVU like about it’s current vendor? What would WVU like to have that current vendor does not provide? Can WVU provide current rate plans and usage patterns? How much national and international travel should a carrier see in a typical month? What percentage of total minutes is data? What is the average MOU per subscriber? What is the average overage per subscriber? How much does the current vendor pay for the sponsorship? Is it possible to bid on wireless service but not sponsorship?

Financial Analysis CCPU: –Billing/Care/etc = $52.00 p/billed customer p/mth. $0.069 cost per minute. –Activation = $15.00 per activation (one-time). –Network Cost: On-Network per minute = $0.04 per minute. Off-Network per minute = $0.20 per minute. CPGA: –CPGA = $403 p/activation (7-mth recovery). Average Handset Subsidy = $125 Revenue Assumptions (AirGate PCS 9/2003): –ARPU = $61.00 –Avg. MOU = 750 Minutes. –Per Min. Revenue Yield = $0.08 p/minute. –Churn = 3.4%

Rate Plans Special Pricing Available: 5% - 15% discount depending upon volume.

Why Horizon Passed On WVU? 1.Did not have input into RFP (not in preferred position). 2.Coverage problems at regional campus’ MHz doesn’t perform as well as 800 MHz in surrounding WV terrain. 3.Poor ROI potential. No roaming charges in questionable coverage. Current vendor low-price competitor…low margin Emphasis is voice and price. 4.Sponsorship too rich. Clearly a loss leader for current vendor. Less than desirable coverage around Morgantown, thus any marketing lift to recoup cost is minimized.

Why Do Companies Issue RFP’s? 1.Required by law. 2.Gain increased services. 3.Obtain lower cost for services. 4.Test the market against current vendor.