Presentation on the detrimental impacts of the Canadian regulatory regime on M&A activity and competitiveness in the Canadian telecommunications industry.

1. CANADIAN TELCO REGULATION, COMPETITION AND M&A

3. WIRELESS SUBSCRIBERS PER 100 INHABITANTS

5. 1. Global Trends

6. 1. Global Trends Source: An Investment Banking Perspective on Communications Sector M&A , Lehman Brothers (2007) # TELECOM DEALS VALUE % of TOTAL M&A VALUE 1998 1,100 $360 billion 14.3% 1999 1,500 $849 billion 26.5% 2000 2,000 $620 billion 18.3% 2005 1,100 $330 billion 12.2% 2006 1,200 $295 billion 8.3% 2007 900 $224 billion 6.5%

7. 2. Regulatory Impacts ENTERPRISE VALUE (Oct. 2007)

10. 2. Regulatory Impacts Source: An Investment Banking Perspective on Communications Sector M&A , Lehman Brothers (2007) COUNTRY/REGION EV/2007 EBITDA 2007-2009 EBITDA CAGR CURRENT DEBT/EBITDA US 7.2x 7.8% 1.5x Japan 5.0x 2.0% 0.9X China 7.8x 5.3% 0.9x India 16.9x 30.4% 1.6x Europe 6.5x 2.4% 2.1x Canada 8.2x 7.6% 1.9x

11. 2. Regulatory Impacts Source: Forbes online Company P/E (12 months normalized) AT&T 11.9x Verizon 14.0x Telus 7.3x BCE 8.4x