Comptel/ASCENT February 17, 2005

Tom Sugrue Vice President Government Affairs T-Mobile

Why Wireless Is Important  Major Telecom Player  Wireless vs. Wireline: Million Subscribers vs. 180 Million Switched End User Lines - 1 Trillion Minutes of Use Annually vs. 432 Billion Interstate Switched Access Minutes Annually - $100 Billion Revenues vs. $100 Billion ILEC Revenues and $10-20 Billion CLEC Revenues

What’s Important to T-Mobile  Independent Wireless Carriers’ Intercarrier Compensation Reform Principles: - Should generate incentives for all carriers to become more efficient, cost effective and competitive - Should be based on a single, integrated scheme for all traffic – interstate, intrastate toll and local – and for all types of carriers - Should be non-discriminatory, technology-neutral and administratively simple

What’s Important to T-Mobile  Independent Wireless Carriers’ Intercarrier Compensation Reform Principles (cont.): - Should eliminate arbitrage opportunities - Should be based on true universal service considerations, not on “make whole” funds designed to replace existing revenue flows - Should focus on benefits to consumers, not on guaranteeing the revenues of incumbent carriers  Similar Principles Put Forth by CTIA

What These Principles Mean  Ultimately Reach Bill & Keep After a Reasonable Transition  Carriers Recover Costs from Their Own Customers  Universal Service Should Not Be Revenue Replacement