Exhibit 99.1
The information contained in this Exhibit 99.1, including excerpts from the 2005
vision statement below, is information that the Company plans to share with
interested parties in various forums, including presentations at investor and
industry conferences and one-on-one or group meetings with investors or other
interested parties.
- Estimated sites owned, leased, or managed as of 12/31/00 is approximately
11,000.
- Estimated new construction for the fourth quarter 2000 is approximately 450
towers.
- Estimated new construction for the year 2001 is approximately 2,000 towers.
The following are excerpts from the Company's vision statement for the year 2005
and other company presentations. The Company views the information contained in
this vision statement as long term goals. The Company believes that this vision
represents a possible scenario of what it may look like in the year 2005. The
statements are in the present tense, as if the Company were speaking in the year
2005. There can be no assurances that these goals will be attained.
o We are the number one owner and operator of wireless towers and broadcast
towers in the contiguous countries of North America with over 25,000 active
towers or sites.
o The vast majority of our structures are co-location ready and do not convey
revenue shares to anybody.
o Approximately 80% of our sites in the U.S. are located within the Top 100
BTAs (Basic Trading Areas) as ranked by population.
o Over 50% of the land underneath our towers is owned by us.
o On average we exceed three broadband equivalent tenants per tower.
o We have the highest organic growth rate among the top 3 tower companies.
o Our teleports operation, renamed as Verestar, has emerged as an
international leader in internet, voice and data communications via space.
o We have a market capitalization above $25 billion and a public float above
200 million shares.
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The following statements give the assumptions underlying some of the Company's
vision 2005 statements. By their nature, the assumptions are estimates and
subject to change. If the underlying assumptions change, the goals will also
change. There can be no assurances that the assumptions, and the goals based on
such assumptions, will materialize.
The following is one possible scenario that could lead the Company to meet its
goal of owning and operating at least 25,000 sites by 2005:
Sites as of 9/30/00 10,000
New Construction 9,000
Acquisitions 6,000
Total 25,000
The Company believes it could achieve a weighted average cost per tower of
$250,000 for a 25,000 site portfolio by creating a portfolio of the following
components:
Sites Average Cost Total Cost
New Construction 15,000 $180,000 $2,700,000,000
Carrier Acquisitions 4,000 $280,000 $1,120,000,000
Other Acquisitions 6,000 $400,000 $2,400,000,000
Weighted Average Cost $250,000
Total Investment $6,220,000,000
The Company believes that its Tower Return on Assets (ROA), defined as revenue
less operating cost divided by tower cost, for a typical single tower in five
years could exceed 20% under the following assumptions:
The Company achieves its weighted average cost per tower goal of
$250,000.
The industry standard assumption for a typical broadband rental
revenue rate in the year 2000 is $18,000 per year.
Typical rental rates escalate between 3% and 5% per year for the next
five years.
The Company achieves its average broadband equivalent tenant per tower
goal of three.
The industry standard assumption for typical site operating costs in
the year 2000 is $10,000 per year.
Typical operating costs escalate between 5% and 6% per year for the
next five years.
The Company believes that newly constructed towers built should produce an ROA
in excess of 20% based on the following assumptions:
The Company constructs towers at a typical construction cost of
$180,000 per tower.
The industry standard assumption for a typical broadband rental
revenue rate in the year 2000 is $18,000 per year.
Typical rental rates escalate between 3% and 5% per year for the next
five years.
The Company achieves its average broadband equivalent tenant per tower
goal of three.
The industry standard assumption for typical site operating costs in
the year 2000 is $10,000 per year.
Typical operating costs escalate between 5% and 6% per year for the
next five years.
Should the Company exceed its average broadband tenant per tower goal
and achieve an average of 3.75 broadband tenants per tower, the ROA could
exceed 30%.
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The Company believes that over time its operating margins for a single tower
will improve due to its ability to leverage operating costs and regional costs
over a larger revenue base. Under the following assumptions, the Company
believes that its operating margin could exceed 65% by year 5:
The Company achieves its tower acquisition and construction goals to
own, lease, or manage 25,000 sites by 2005.
The industry standard assumption for a typical broadband rental
revenue rate in the year 2000 is $18,000 per year.
Typical rental rates escalate between 3% and 5% per year for the next
five years.
The Company's tower portfolio has an average of at least 2.5 broadband
equivalent tenants per tower.
The industry standard assumption for typical site operating costs in
the year 2000 is $10,000 per year.
Typical operating costs escalate between 5% and 6% per year for the
next five years.
The Company believes that it could generate operating cash flow (defined as
operating revenue less operating expenses, excluding depreciation and
amortization and development expenses, and includes interest income, TV Azteca,
net) of $1,600,000,000 in the year 2005 under the following assumptions:
The Company achieves its tower acquisition and construction goals to
own and operate 25,000 sites by 2005.
The Company's tower portfolio has an average of at least 2.25
broadband equivalent tenants per tower.
The Company's Services group generates at least $160,000,000 in
operating cash flow.
The Company's Internet, voice, data and video transmission group
generates at least $160,000,000 in operating cash flow.
The Company achieves its goal of owning and operating towers in
selected foreign countries and these operations generate at least
$80,000,000 in operating cash flow.
