Introduction to Crown Castle

When coverage or capacity gaps are identified by the wireless carriers, Crown Castle will either:– Provide a fix by easily & simply collocating on one of our towers,

– If we do not have a tower, we will identify another structure that will

solve the problem,

– If there are no towers or other suitable structures, we will build a tower

– If a tower can not be built due to zoning or other impediments, we will

build a distributed antenna system (DAS)

Our Mission is to deliver the highest level of service to our customers at all times – striving to be their critical partner as we assist them in growing efficient, ubiquitous wireless networks.

Our Mission is to deliver the highest level of service to our customers at all times – striving to be their critical partner as we assist them in growing efficient, ubiquitous wireless networks.

Wireless Demand

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2007 2008 2009 2010 2011

0

5

10

15

20

25

DS-1 Equivalents needed tohandle cell tow er backhaul

DS-1s per Tow er

Mobile Wireless Bandwidth DemandMobile Wireless Bandwidth Demand

(1) Swanson and Gilder, Estimating the Exaflood, Discovery Institute, January 2008.(2) Fortune, November 7, 2008.

Source: GeoResults, Inc.

Migration to 4G networks will drive bandwidth growth. 3G base stations have only 10 MB of

capacity.

4G base stations will have approximately 300 MB of capacity, or 100 MB per antenna. (2)

Verizon began testing its LTE 4G network in 2009

AT&T and Verizon have both targeted 2010 for their 4G network launch.

$19.4B wireless data revenue in 1H2009 = 31% increase over 1H2008

Wireless data revenue represents 25% of total wireless revenue and growing

1. Networks are moving to more data centric in nature2. LTE and advanced networks

A. LTE air interface brings first true broadband air interface with sufficient speed to justify fiber backbones

B. Network design requires additional sites to achieve advertised throughput levels

C. Carriers are looking to get better in building and in home penetration

3. Capacity ConstraintsA. Carriers are trying to get as much traffic as possible off the macro

networks thru in building systems and Wi-FiB. Proliferation of smart phones lead to massive growth in data

demand while voice traffic continues to grow as well

4

Trends in DAS

Agreements necessary to deploy DAS

Pole AttachmentsPole Attachments Right-of -WayRight-of -Way

Carrier AgreementsCarrier AgreementsHub SiteHub Site

Agreement required with each pole Agreement required with each pole owner (electric and telephone owner (electric and telephone companies)companies)

Pole owners require rent for each pole Pole owners require rent for each pole usedused

Locality cannot deny access for Locality cannot deny access for wireless facilitieswireless facilities

DAS provider pays reasonable fees DAS provider pays reasonable fees applied uniformly to all companiesapplied uniformly to all companies

Location needed for central network Location needed for central network equipment and carrier equipmentequipment and carrier equipment

Provider or Carrier must pay monthly Provider or Carrier must pay monthly rent for hub site on private landrent for hub site on private land

Development interest dependent on Development interest dependent on carrier willingness to participate in carrier willingness to participate in networknetwork

Carriers driven by economic Carriers driven by economic considerations and public demand for considerations and public demand for serviceservice

Local Regulation of DAS

Right-of-Way Regulation

• Federal law mandates access

• Crown subsidiary is a state-certified CLEC

• Municipality can administer the right-of-way and set safety rules

• Fees must be reasonable and competitively neutral

Zoning/Land use control

• Federal law preserves local discretion to review antenna siting

• Locality is concerned with visual impact and delivery of basic services

• DAS promotes wireless ordinance goals − low impact, shared facilities

• Equipment of the same size is routinely installed on poles without local review

Flexibility in DAS Solutions to Serve Local Goals

Hunter Mill, VA

Scottsdale, AZ

Stanford University, CAColonial Williamsburg, VA

Pelican Hill, CA