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To: Dave who wrote (1228)	2/2/2002 10:13:50 PM
From: pcstel	Read Replies (2) \| Respond to of 2737

Dave: So we will breakout Airgate consolidated from the 1 month iPCS was owned by Airgate. Airgate added 69,315 net subscribers 235,025 for a total at the end of December of 304,340. Airgate claims ARPU is $60 304,340 * (60*3)=54,781,200 vs. reported service revenues of 55,849,000 So we know we are in the ball park here So to model Airgate with Cricket on a ARPU basis. We will deduct the Roaming Expenses from Airgate's Service Revenues. Cricket has no roaming expenses. Service Revenue $55,849 Roaming Expenses (17,100) Service Revenues minus Roaming Expenses $38,749,000 Now we use the formula $38,749,000 divided by 304,340 subscribers provides 127.32 in ARPU for 3 months. Or non roaming ARPU of $42.00 vs. $37 for Cricket. Now if we deduct Roaming Expenses from reported Cost of Service and roaming Operating expenses. This should give us Cost of Service expenses for a Non-Roaming Airgate customer. Cost of service and roaming $57,757,000 Roaming expense ($17,100,000) Adjusted Cost of Non-Roaming Service $40,657,000 Cost of service per user (per month) $44.53 per month. vs Crickets Cost of service per user (per month) of around $16 per user. So while Airgate may show a ARPU of $60 per month. Once you subtract the roaming expenses paid to SprintPCS its adjusted ARPU is only $42. And non-roaming Cost of Service expenses are $44. What do you like better? Airgate with an adjucted Cost of Serive Per User of $44 generating an ARPU of $42 with no spcectrum ownership and 7 million a month in Roaming Income from SprintPCS. Or Cricket with a Cost of Service Per User of $16 generating an ARPU of $37 with spectrum owneship that just generated 140 million in cash from the sale of 15Mhz of excess spectrum in Salt Lake City to Cingular? PCSTEL