1. Telecommunication Services Stewart Hanlon Josh Hall

2. Sector Overview Communication by electronic or electric means, as through radio, telephone, television, computers, and portable communication devices 80% of Telecom’s market cap is contributed by AT&T and Verizon Comprised of four main subsectors

3. S&P 500 vs. S&P Telecom Index NASDAQ vs. NASDAQ Telecom Index

4. Subsectors of Telecom Cable and Satellite Services  Comcast, Direct TV, Newscorp Fixed Line Service Providers  Verizon, AT&T, Qwest, Sprint Telecommunications Infrastructure  American Tower Corp, SBA Communications, Crown Castle, Level 3 Wireless Communication Providers  Verizon Wireless, AT&T, Sprint

5. Investment Strategy Security Analysis (Long Term Strategy)  Strong ROA/ROE/ROI, EBITDA Margin/Expanding Margins, Debt to Equity, Liquidity Graham, Dodd Buffetology  Low leverage, understandable business models, share repurchasing rather than dividends Qualitative Factors  Barriers to entry, increased data transfer demand, strong economies of scale Economic Factors  Current macro and micro trends  Conservative/Defensive Porter’s Five Forces  Consolidated Industry, Customer Concentration, Supplier Advantages, Barriers to Entry, No Substitutes/Alternatives

6. Cable & Satellite Services Main competitors: Comcast, Direct TV, Newscorp Reasons to avoid:  Slow growth  Complex corporations with diverse products and services, i.e. Newscorp and Comcast  Many mergers and acquisitions causing high leverage and dilutive share values

7. Fixed Line Service Providers Main competitors: Verizon, AT&T, Qwest, and Sprint Reasons to Avoid:  Consumers switching from fixed home line to only wireless (subscriber growth = negative)  Strong competition, low margins,  Highly Invested in Obsolete Equipment

8. Wireless Communication Providers Main Competitors: Verizon Wireless, AT&T, and Sprint Reasons to Avoid:  Poor Revenue growth, Low & Diminishing margins,  Large Capital Expenditures due to Wireless Growth 3G & 4G Networks, Increased Wireless Network Range  Acquisitions & Strong competition Effects: Highly levered  Data Applications Very Expensive  Exclusive Product Contracts AT&T w/ iPhone  All Invested in Fixed Line Services

9. Telecommunications Infrastructure Main Competitors: American Tower Corp, SBA Communications, Crown Castle, Level 3 Reasons to Invest:  High Barriers to Entry/Growth Opportunities for Existing Firms  Increases in Lease Activity and Contracts Rates Increase Yearly (usually 3-5%)  Increasing Network growth for Carriers (requirement) = Revenue growth for Infrastructure Companies Increased Data Transfer Demand  International Growth Opportunities  Low risk, Non-Cyclical, Stable Businesses  Strong Fundamentals Increasing Margins

10. LEVEL 3 Highly Invested in Fixed Line and Cable line Infrastructure Highly Levered Extremely Volatile Stock Price (TTM Range of $.60-$1.77) Key Ratios:

11. Crown Castle Second largest tower company Strong revenue and subscriber growth 22,000 towers in operation with an average 0f 3.7 tenants per tower. High Growth Prospect, but as of today no positive earnings to date

12. SBA Communications Two main customers are T Mobile and Sprint, who are being forced to upgrade reliability capabilities through improved infrastructure 8,000 towers, with high growth upside Operate in the US, Puerto Rico, Canada, and the U.S Virgin Islands Smaller company, with Average Daily Trading below 2 million shares per day

13. American Tower Corp Largest tower company, outperforming peers AT&T, Verizon Wireless, and Sprint are main customers Directly benefit from 3G&4G network improvements and handheld devices (iPhone, iPad, Blackberry, Droid) Superior margins and low leverage Operates 26,000 towers in the US, Mexico, India and Brazil, with huge growth potential. Proponent of share repurchases and actively paying off debt

14. Comparable 5-Yr Growths 2005-2008/09

15. Comparative Ratios

16. Infrastructure Stocks vs. S&P Telecom Infrastructure Stocks vs. S&P 500

17. AMT vs. S&P, DJ Telecom Index

18. End of Slides Questions?

19. Appendices Index P/E Ratios and Trading Stats: Slide 18 AMT Growth Potential vs. Industry: Slide 19

20. Company Statistics