Annual report: Powertel…All the Right Connections

Powertel…All the Right Connections

Using the world’s most advanced emerging technology to deliver wireless services with unsurpassed transmission, security and clarity.

It’s the dawn of a new era in wireless telecommunications. A major revolution in the United States is changing the way people communicate with each other. Delivering higher quality voice and data transmission, secure communication, sophisticated new services, increased ease and convenience, and lower costs. That’s the future being built today through Powertel, InterCel’s newest wireless offering.

Through the emerging power of PCS, a broad range of individualized telecommunications services allows people or devices to communicate independently of location. This technology is being hailed as the standard for all future wireless telecommunications. The Personal Communications Industry Association estimates that the number of cellular and PCS wireless services subscriptions are expected to reach 61.7 million by the year 2000. PCS subscriptions will account for approximately 14.8 million of those subscriptions.

InterCel intends to be a leader in making the PCS technology a reality in homes and businesses in much of the southeastern United States. The Company will offer all the right connections through Powertel: state-of-the-art technology and the know-how to provide a full range of high quality, fully mobile wireless telecommunications services for home, vehicle and business.

Working with world-class equipment vendors such as Ericsson, Powertel is targeting late 1996 for opening its doors for commercial business in its initial rollout service areas.

(outhead) The Powertel advantage

PCS and other emerging technologies are creating a new era in personalized telecommunications. Using these advanced capabilities, InterCel will be among the first to deliver the products of this new era to its service areas — creating the Powertel advantage.

What is PCS?

PCS is a broad range of individualized telecommunications services allowing people or devices to communicate independently of location. PCS can link the subscriber’s home, business, vehicle, portable and desktop computers, fax machine, pager and voice mail into a seamless communications system managed by personal choice.

The PCS technology InterCel selected is GSM (Global System for Mobile Communications). GSM is the most widely deployed digital wireless technology in the world. This proven protocol has already enhanced the personal telecommunications experience in more than 70 countries.

Providing unsurpassed capabilities

InterCel is harnessing this emerging technology through Powertel to introduce personalized communication capabilities that extend the individual’s reach with ease. Unlocking the future, Powertel can offer subscribers unsurpassed capabilities — more than cellular, a pager or a home phone:

• Clearer sound quality than current wireless analog technology. Cleaner, more reliable voice (and data) communications.
• Secure encrypted communication. No more eavesdropping on sensitive calls or phone numbers scanned for fraudulent use.
• Simultaneous voice and data communications. Through one number, at the same time: conduct a conversation and receive a short message.
• New levels of customer flexibility. A Subscriber Identity Module (SIM) card, the size of a credit card, permits use in any phone where compatible technology is used throughout the world.
• Billing status updates, anytime, anywhere. Customer-friendly access to current billing information.
• Sophisticated features. Offering the most extensive menu of individualized features such as caller ID, call diversion, hold, two-way paging, voice mail notification, fax and e-mail.

Using these advanced technological capabilities to provide easy, convenient and low-cost communication, PCS is propelling the world into communication for the 21st Century. And InterCel, through Powertel, expects to be one of the first companies in the southeastern U.S. to harness its power.

Multi-market opportunity

Consumers today buy wireless services for safety, convenience, time management and prestige, with safety the fastest-growing reason for purchase. These diverse market segments stand to receive the greatest benefits from PCS’s advanced wireless services:

• Individuals wanting greater safety and convenience.
• Businesses and individuals desiring full security in voice and data telecommunications.
• Current cellular customers interested in upgrading to PCS.
• Potential customers desiring the most advanced data technologies available.
• Businesses wanting to integrate their existing communication and wireless systems to achieve greater benefits.
• Residential cordless users needing additional range.
• Individuals who prefer to operate on a pre-paid account basis.

Tremendous growth potential

InterCel’s PCS properties represent one of the largest PCS footprints in the southeastern United States.

Through the acquisition of Powertel PCS Partners, L.P., InterCel is the owner of three PCS licenses to provide service in areas totaling 122,000 square miles and approximately 9.7 million people. The 1996 initial rollout will cover the major metropolitan areas of Memphis, Tennessee; Jackson, Mississippi; Florence, Huntsville, Anniston, Gadsden, Birmingham, Tuscaloosa, Montgomery and Dothan, Alabama; and Panama City, Tallahassee, Jacksonville and Gainesville, Florida.

In March 1996 InterCel entered into a definitive agreement to acquire the Atlanta, Georgia MTA license which is contiguous to the markets encompassed by its first three PCS licenses. This fourth license covers approximately 58,000 square miles and approximately 7 million people. This acquisition is expected to be competed in the second or third quarter of 1996. The initial service rollout in this market area is scheduled for late 1997 and will include the metropolitan areas of Atlanta, Savannah, Athens, Macon, Albany, Columbus and Augusta, Georgia; North Augusta, South Carolina; and Chattanooga, Tennessee. Additional cities and rural territories in parts of 10 southeastern states will be integrated into the system as expansion continues.

This service area presents Powertel with several advantages for tremendous market growth, including healthy population trends and growing income levels, favorable topography for rapid system build-out and access to fiber optic networks to accommodate high traffic while lowering cost.

Marketing customized service packages

To reach a broad market spectrum, Powertel is putting together the right combination of distribution channels. Retail stores, a direct sales force, a dealer network, mass merchandisers, agents and resellers, as well as telemarketing and direct mail, are expected to team up to market Powertel’s innovative products and services. The Company’s marketing strategy: to offer customized, easy-to-understand service packages, with the goal of exceeding customer value expectations.

Helping set the standard for the future

Powertel is a dynamic vehicle for change, dedicated to revolutionizing telecommunications in its southeastern service area. It combines valuable strategic relationships with powerful, cutting-edge technological capabilities and customer focus. The result: Powertel will provide its wireless service offerings at a fair price, along with unmatched customer support.

Setting the pace as one of the first PCS providers in the southeastern U.S., the Company will introduce a new set of personalized, state-of-the-art wireless services. Building all the right connections for the future, Powertel is helping define the standard in telecommunications in the 21st Century.