Business Proposition for Push-to-Talk David J. Sinkula

Cellcom Markets Pops. Brown County (Green Bay)230K WI 4 (Shawano County)125K WI 10 (Door County)131K Wausau125K Appleton102K Total Pops. Served 713K

Demographics Wisconsin is a state that encourages small business and fosters an entrepreneurial climate Small Business Development supported by University of Wisconsin –Eleven SBDC throughout Wisconsin –Provide consulting services and management education Northeast Wisconsin heavy in paper industry –Service industry to support paper manufacturing –Small manufacturing innovation is prevalent Heavy service industry is within Cellcom geographies

Timing Cellcom business customers were asking about PTT feature for their wireless programs. Longstanding Cellcom customers began carrying two plans: –Cellcom CDMA voice –Nextel IDEN PTT 2003 market research showed a growing share of wireless market was moving to PTT Two way radios are a significant part of business communications market.

Target Market Brown County Homebuilders Association –Cellcom is official BCHA provider of wireless service –1,200 members Manufacturing support to paper industry Beverage distributors Cleaning companies College maintenance staffs HVAC service providers

Product Kodiak Networks Platform –PTT – One way, half duplex real-time voice application –Uses existing wireless voice networks –Fastest call set-up time (Non IDEN) –Lowest intra-call latency in the industry Kyocera 3250 –Bar phone –First phone available on Kodiak platform

Price Handset –Kyocera 3250 bar phone$99.95 Monthly Access –PTT 200$10.00 ( Additional calls $.15) –PTT Unlimited$20.00

Requirements for Success PTT service comparable to Nextel –Call setup latency of 1.5 seconds or less –Ease of programming PTT contacts –Handset that was perceived as rugged Pricing comparable to Nextel Handset price Promotion Sales/service support

Experience - - Year One 1,000 subscribers in BCMSA in first 6 months PTT Access Breakdown –200 calls / month 30% –Unlimited70% Incremental ARPU - - $17 per PTT user

Challenges - - Year One Handset – Kyocera 3250 Phantom –Durability in harsh environments –Chirp volume limitations: Did not know they were getting a call. –Market demand for clam shell form factor and more rugged Kyocera PTT Slider –Slow sell through due to small size SMSC –Did not have SMS roaming/roaming gateway –SMS traffic from text messaging & PTT SMS overloaded the SMSC. Inability to Roam – Could not sell to customers on fringe of Cellcom network – Could not sell to customers that covered large geographies Kyocera Slider

Year Two - - Relaunch Handsets –Kyocera 440 Phantom More Durable & Rugged Louder chirp –Clamshell form factor still a challenge Installed roaming gateway (now can originate PTT call off network) Launched SMS Roaming Switched to digitally optimized PRL – ubiquitous SMS coverage SMSC upgrades, includes redundancy and scale improvements.

Year Two – Projected Grow subscriber base 200% with new users Bring back subscribers lost to SMS and handset inadequacies Growth will continue based upon existing Kyocera bar phones Explore consumer proposition Anticipate decline in PTT ARPU due to competitive pressures