Kagan Media Appraisals: “Our assignment was to prepare an analysis of the financial capacity and competitive appetite of the wireless carriers, in particular AT&T and Verizon, to fully participate in back-to-back AWS-3 and 600 MHz Incentive auctions, assuming a 2016 start date for the 600 MHz Incentive Auction. This report is for informational purposes only and is not intended for use in any business plan nor does it constitute financial, legal, regulatory, tax or accounting advice. It is offered solely as an independent study of current events in the U.S. wireless industry as they might relate to the planned Incentive Auction to be held by the FCC in 2016 for 600 MHz spectrum currently licensed to U.S. television broadcasters and should not be considered a recommendation, opinion, or advice of any kind with respect to the Incentive Auction opportunities. Any estimates of value cited in this report are a result of our independent conclusions based on the assumptions, analyses and discussions contained in the following pages.”