FiberTower Corporation

1
FiberTower Corporation

• JPMorgan 2006 Small/Mid Cap Conference
• November 15, 2006
• Mike Gallagher, President and CEO
• Tom Scott, Senior Vice President and CFO

2
Forward-Looking Statements

• This Presentation contains or may contain
  forward-looking statements within the meaning of
  Section 21E of the Securities Exchange Act of
  1934 and Section 27A of the Securities Act of
  1933. These forward-looking statements, as
  defined in Section 21E of the Securities Exchange
  Act of 1934 and Section 27A of the Securities Act
  of 1933, are identified by words such as may,
  will, would, could, likely, estimate,
  intend, plan, believe, expect, or
  anticipate and other similar words and are
  dependent on certain events, risks and
  uncertainties that may be outside of the
  Companys control. These forward-looking
  statements may include statements of managements
  plans, objectives and expectations for the
  Companys future operations and statements of
  future economic performance, the Companys
  capital budget and future capital requirements,
  and the Companys meeting its future capital
  needs. We do not guarantee that the transactions
  and events described in this Presentation will
  happen as described or that any positive trends
  noted in this Presentation will continue. Actual
  results and developments could differ materially
  from those expressed in or implied by such
  statements due to a number of factors, including,
  without limitation, those identified in our
  confidential offering memorandum relating to the
  offering or described in the context of such
  forward-looking statements. We will not update
  forward-looking statements even though our
  situation may change in the future.

3
Overview

• FiberTower designs multi-carrier backhaul
  networks that it owns and operates, and uses
  these networks to provide backhaul services to
  wireless carriers
• Currently own and operate networks in 12 markets
• Signed MSAs and customer commitments with five
  leading wireless carriers
• Nationwide spectrum footprint
• Access to high-quality tower sites through
  strategic relationships with Crown Castle and
  American Tower
• Network technology allows flexible network
  deployment in metro, suburban and rural markets
• Stable, recurring revenue model with significant
  incremental margin expansion as T1 equivalent
  capacity and/or customers are added to our
  networks

4
FiberTower First Avenue Networks Merger

• First Avenue Networks and FiberTower merged on
  August 29, 2006, to create FiberTower the
  largest alternative provider of backhaul services
  to wireless carriers
• All stock transaction
• Transaction combined First Avenues nationwide
  spectrum assets with FiberTowers operational
  expertise, customer contracts and relationships
  with leading tower companies
• Transaction increases speed-to-market, reduces
  business risk and enhances FiberTowers ability
  to serve wireless carriers
• Enables FiberTower to increase penetration in
  existing markets and to expand into new markets

5

• Market Opportunity

6
Backhaul The Achilles Heel of Wireless Networks
Fiber Ring
Verizon Wireless BTS
Fiber
BSC - MSC
Central Office
Copper
Cingular Wireless BTS
Backhaul
Carrier Challenges

• Backhaul Expense 15-25 of total carrier opex
  and growing
• Backhaul Expense Growth outstripping revenue
  growth significantly
• Reliability 50-80 cell site outages
  attributable to wired local loop
• Capacity Constraints Growth in voice and data
  traffic increasing required backhaul capacity
• Capacity Constraints 18 T1s per tower is the
  approximate capacity limit of existing copper
  (Source Stratsoft Research 2006)
• Technology Migration - Need to migrate from TDM
  (T1s) to Ethernet
• Scalability/Provisioning Time - Lengthy T-1
  provisioning times (4-12 weeks)

7
Network Upgrades Near Term Impact on Backhaul
T1s per Cell Site
W-CDMA Carriers
10-16 T1s
UTRAN _at_ 100 Mbps DL
HSDPA _at_ 14 Mbps DL
6-10 T1s
WCDMA _at_ 384 Kbps DL
4-6 T1s
GPRS _at_ 160 Kbps DL
2 T1s
CDMA Carriers
Rev B _at_ 73.5 Mbps DL
10-16 T1s
Rev A _at_ 3.1 Mbps DL, 1.8 Mbps UL
6-10 T1s
1xEV-DO Rev 0 _at_ 2.4 Mbps DL, 153 Kbps UL
4-6 T1s
CDMA 1x _at_ 153 Kbps DL
2 T1s
2008
2004
2010
2006
8
Projected Backhaul Growth
Service Revenues (billions)
5-Year CAGR 27.4
Source Wall Street Research, Industry Research
(Stratsoft) and Company estimates, Sep 2006.
9
Wireless Carriers Increasing Capital Expenditures

Over 160,000 new cell sites are projected to be
built due to new spectrum initiatives - Source
Bear Stearns U.S. Spectrum Trends and Impact on
Tower Business 9/06
Source Selected Wireless Carrier press
releases.(1) Includes Leaps 82.5 owned
subsidiary Denali.
10
FiberTower Backhaul Characteristics
11
FiberTower Backhaul Network
FiberTower Site (tower or rooftop)
Point-to-Multipoint (PMP)
T-Mobile
Customer Location (tenant site)
Verizon
Sprint
T-Mobile Verizon
PTP / PMP radios and SONET fiber
Point-to-Point (PTP)
FTWR Fiber Exchange Point (FEP)
Customer MSC
Sprint Verizon
T-Mobile
Cingular MetroPCS
End-to-End (BTS-to-MSC) Solution
12
Point-to-Point Existing Market
Point-to-Point
13
Point-to-Point Market Point-to-Multipoint Design
PMP overlay of existing PTP network enables
FiberTower to capture/serve more carrier sites
PMP Network Overlay
14
FiberTower Markets and Nationwide Spectrum
Current
FiberTower Markets
Developing
39 GHz
FiberTower Spectrum
24 GHz
Detroit
Boston
Pittsburgh
NY/NJ
Chicago
Cleveland
Washington DC
Denver
Carolinas
Dallas/ Fort Worth
Atlanta
Houston
San Antonio/ Austin/Waco
Tampa
15

• Financials and Operating Success

16
Financials
Does not reflect net proceeds of 390 million
from recent sale of convertible notes
17
Year-over-Year Operational Success
Customer Locations Billing
Also referred to as cell sites, which are
located at cell towers and rooftop sites
Cumulative Customer Locations Billing
T1 Equivalents Billing
Cumulative T1s Billing
18
Year-over-Year Operational Success
FiberTower Sites Deployed
Could be a tower or rooftop site
Cumulative Sites Deployed
FiberTower Sites Billing
Could be a tower or rooftop site
Cumulative Sites Billing
19
Recent Capital Raise

• 402.5 million private placement closed on
  November 9 net proceeds of 390 million
• 69 million to be used for first two years of
  interest expense, leaving us with approximately
  321 million to fund network expansion in the 12
  existing markets and to selectively open up new
  markets, as well as for general corporate
  purposes
• De-risks the company and gives us the capital we
  need to deploy our networks and execute on our
  business model
• Accruing 9 interest annually, payable
  semi-annually
• To mature on November 15, 2012
• Initial conversion price of 8.29, a 15 premium
  over Oct. 26 closing price
• Conversion price may be reduced if certain
  conditions are not met
• Secured by nearly all of FiberTowers assets

20
Site Level Economics

• Capex for single tenant site is approximately
  40,000
• Current T1 capacity per site is approximately
  21-28 T1s

21
Summary

• The backhaul market opportunity is estimated to
  grow from 3.8 billion in 2006 to 10.1 billion
  in 2010
• Market forces are leading to a perfect storm for
  microwave backhaul
• Recurring revenue from quality customers, low
  churn and high incremental contribution margin
  with each additional T1 equivalent and/or carrier
  added
• Through nationwide spectrum and strategic tower
  company relationships, FiberTower can rapidly
  deploy backhaul networks in metro, suburban and
  rural markets
• FiberTower is in a strong financial position to
  execute its plan
• FiberTower can provide a more scalable, reliable
  and cost-effective backhaul solution

22

• Thank You