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From modest From modest beginnings as a small beginnings as a small telephone exchange in telephone exchange in Oak Ridge, Louisiana, Oak Ridge, Louisiana, serving fewer than 100 serving fewer than 100 customers. CenturyTel customers. CenturyTel has grown to become has grown to become one of the leading one of the leading providers of integrated providers of integrated communications communications services for homes and services for homes and businesses.businesses.

CenturyTelCenturyTel

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Stock Stock InformationInformation Publicly traded on the new Publicly traded on the new

York stock exchange under York stock exchange under the symbol CTL.the symbol CTL.

In 1999, CenturyTel was In 1999, CenturyTel was added to the S&P 500 index. added to the S&P 500 index.

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CenturyTel CenturyTel OverviewOverview Focus on rural, suburban & smaller Focus on rural, suburban & smaller

city marketscity markets $5B market capitalization$5B market capitalization $1.7B in operating revenue$1.7B in operating revenue 8th largest local exchange8th largest local exchange 8th largest cellular company8th largest cellular company 3 million customers3 million customers 21 states21 states

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CenturyTel offers:CenturyTel offers:

LocalLocal WirelessWireless Long DistanceLong Distance Internet ServicesInternet Services High Speed Access High Speed Access

– Local and – Local and RegionalRegional

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CenturyTel Properties CenturyTel Properties 20002000

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CenturyTel’s Growth CenturyTel’s Growth StrategiesStrategies

Continue strong internal revenue Continue strong internal revenue and customer growth in core and customer growth in core businessesbusinesses

Leverage customer base by Leverage customer base by bundling additional servicesbundling additional services

Utilize core competencies and Utilize core competencies and network infrastructure to cultivate network infrastructure to cultivate new revenue streamsnew revenue streams

Pursue acquisitions to expand Pursue acquisitions to expand market clusters - consolidator of market clusters - consolidator of rural telephonyrural telephony

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Why LMDS ?Why LMDS ?

Opportunity to expand existing Opportunity to expand existing wireline & wireless market clusters wireline & wireless market clusters

Opportunity to complement Opportunity to complement wireline and wireless markets with wireline and wireless markets with broadband wireless servicesbroadband wireless services

Technology to provide “fiber-like” Technology to provide “fiber-like” broadband servicesbroadband services

Technology to provide bundled Technology to provide bundled services services

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LMDS A-BlockLMDS A-Block LMDS B-BlockLMDS B-Blockk

CenturyTel LMDS CenturyTel LMDS BTAsBTAs

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LMDS and Fiber LMDS and Fiber OverlayOverlay

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LMDS Market LMDS Market StatisticsStatistics

Market population comprised of Market population comprised of 55% urban and 45% rural55% urban and 45% rural

Estimated number of Estimated number of businesses covered over businesses covered over 144,000 144,000 94% have less than 50 employees94% have less than 50 employees

Estimated voice & data services Estimated voice & data services market for businesses = $2.0 market for businesses = $2.0 billionbillion

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Key Market Key Market TrendsTrends

Rapidly expanding high speed Rapidly expanding high speed internet accessinternet access

Businesses want to minimize Businesses want to minimize their communication supplierstheir communication suppliers

Expanding IP telephonyExpanding IP telephony Aggressive competition for Aggressive competition for

local accesslocal access Inability of the local exchange Inability of the local exchange

companies (RBOCs) to deliver companies (RBOCs) to deliver timely servicetimely service

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LMDS StrategyLMDS Strategy Leverage existing Leverage existing

infrastructureinfrastructure Offer value added services Offer value added services

Voice and DataVoice and Data LAN to LAN, VPN, High Speed LAN to LAN, VPN, High Speed

Internet, etc. Internet, etc. Complement existing services Complement existing services

Fiber networks Fiber networks Cellular/PCS/Internet backhaulCellular/PCS/Internet backhaul

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LMDS StrategyLMDS Strategy

Utilize both point-to-point and Utilize both point-to-point and point-to-multipoint technologiespoint-to-multipoint technologies

Targeted hub build-outsTargeted hub build-outs Concentrated business areas Concentrated business areas Utilize existing cellular sites Utilize existing cellular sites Obtain roof right optionsObtain roof right options

Build Build withwith our customers our customers

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LMDS Equipment LMDS Equipment SelectionSelection

Cost performanceCost performance Frequency division – FDMAFrequency division – FDMA Time division – TDMATime division – TDMA Backhaul requirementsBackhaul requirements

Service capabilitiesService capabilities DS-1, DS-3 &OC-XDS-1, DS-3 &OC-X 10/100BaseT10/100BaseT QOS capableQOS capable

Ease of deploymentEase of deployment Manufacturing capabilitiesManufacturing capabilities Supplier reputationSupplier reputation

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Why Ericsson?Why Ericsson?

System architectureSystem architecture Cross hub traffic managementCross hub traffic management Radio linkRadio link

ATMATM TDMATDMA

QOS capableQOS capable Equipment “look and feel”Equipment “look and feel” CostCost Industry reputationIndustry reputation

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LMDS Status LMDS Status Licenses obtainedLicenses obtained Vendor equipment selection Vendor equipment selection

completecomplete Point-to-point systemPoint-to-point system Point-to-multipointPoint-to-multipoint

One market in serviceOne market in service Additional markets being Additional markets being

plannedplanned Finding customersFinding customers

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ChallengesChallengesRoof rights - $sRoof rights - $sCompetitionCompetition

UNEs with CollocationUNEs with CollocationOther CLEC facilitiesOther CLEC facilities

Utilization per siteUtilization per siteAdditional applicationsAdditional applications

10/100BaseT10/100BaseT

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Our Opportunity!Our Opportunity!

CenturyTelCenturyTelShreveport, Louisiana, USAShreveport, Louisiana, USA

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Web: www.centurytel.comPhone: (318) 388-9765Fax: (318) 340-5353Email: doug.bieniek@centurytel.comContact: Doug Bieniek

Vice President – Application Development

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