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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;1. Description of Business and Basis of Presentation&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The accompanying condensed consolidated financial statements should be read in conjunction
   with the consolidated financial statements contained in our 2010 Annual Report on Form 10-K. In the
   opinion of management, all adjustments consisting of normal recurring accruals necessary for a fair
   presentation have been included. The results for the three months ended March&amp;#160;31, 2011 and 2010 do
   not necessarily indicate the results that may be expected for the full year.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We are a leading provider of 4G wireless broadband services. We build and operate next
   generation mobile broadband networks that provide high-speed mobile Internet and residential access
   services, as well as residential voice services, in communities throughout the country. Our 4G
   mobile broadband network provides a connection anywhere within our coverage area.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In 2011, we are focused on improving the operating performance of our business, continuing to
   grow our wholesale subscriber base, increasing the operating efficiencies related to our retail
   subscribers, reducing costs of our operations and seeking to raise additional capital to continue
   the expansion and development of our 4G mobile broadband network.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As of March&amp;#160;31, 2011, we offered our services in 88 markets in the United States covering an
   estimated 127.8&amp;#160;million people, including an estimated 125.6&amp;#160;million people covered by our 4G
   mobile broadband network in 71 markets. We ended the quarter with approximately 1.3&amp;#160;million retail
   and 4.8&amp;#160;million wholesale subscribers. We have deployed our mobile Worldwide Interoperability of
   Microwave Access, which we refer to as WiMAX, technology, based on the IEEE 802.16e standard, in
   our launched markets using 2.5 GHz Federal Communications Commission, which we refer to as FCC,
   licenses. As of March&amp;#160;31, 2011, the remaining 17 markets in the United States, covering an
   estimated 2.2&amp;#160;million people, continue to operate with a legacy network technology, which we refer
   to as Pre-4G, that is based on a proprietary set of technical standards offered by a subsidiary of
   Motorola Solutions, Inc., which we refer to as Motorola. Internationally, as of March&amp;#160;31, 2011, our
   networks covered an estimated 2.9&amp;#160;million people. We offer 4G mobile broadband services in Seville
   and Malaga, Spain and a Pre-4G network in Brussels and Ghent, Belgium.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As
   further discussed in Note 17, Subsequent Event, on April&amp;#160;18, 2011, we signed the a series of agreements with Sprint Nextel Corporation, which
   we refer to as Sprint, that substantially changed the terms upon which we sell 4G wireless broadband
   services to Sprint and purchase 3G wireless services from Sprint. Under those agreements, which we collectively refer to as the Sprint Wholesale Amendments,
   the parties agreed on a new usage-based pricing structure that applies to most 4G wireless broadband services purchased by Sprint, and Sprint agreed, subject to certain
   exceptions, to pay us a minimum of $300.0&amp;#160;million for our services in 2011 and $550.0&amp;#160;million in
   2012, and to prepay us another $175.0&amp;#160;million over a two-year period for services purchased beyond
   those covered by the minimum commitment and to pay us approximately $28.2
   million to settle outstanding disputes related to prior usage. Additionally, the Sprint Wholesale Amendments resolved a number
   of disputes related to wholesale pricing. Of these
   amounts, Sprint paid us approximately $181.5&amp;#160;million on April&amp;#160;27, 2011.
   &lt;/div&gt;
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 -Publisher AICPA
 -Name Statement of Position (SOP)
 -Number 94-6
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