FOCUS TelecomTechnology and Services GroupU.S. CommunicationsService ProviderQuarterlyFall 2017 ReportVol. 7, No. 4In this IssueStrategic, Personal, Dedicated2 Introduction and Sub SectorDefinitions3 U.S. Summary Comments: PublicInvestment Banking and Advisory ServicesFOCUS Investment Banking LLC is a leadinginvestment bank with specialized telecom technologyand services expertise, concentrating on providinghighly tailored services to emerging middle market andlarger organizations in this sector:Mergers & Acquisition AdvisoryCorporate Development ConsultingStrategic Partnering & AlliancesCapital Financing, Debt & EquityCorporate ValuationsMarkets4 Public Market SummaryCharts 1-65 U.S. Summary Comments: M&AM&A Summary Charts 1-26 Announced Transactions8 Announced Transactions withRevenue Multiples9 Sub Sector Analysis: Large CapTelecom Charts 1-610 Sub Sector Analysis: AlternativeTelecom Charts 1-611 Sub Sector Analysis: Hosted andManaged Services Charts 1-612 Sub Sector Analysis: ILEC andDiversified ILEC Charts 1-613 Sub Sector Analysis: Cable andVideo Charts 1-614 FOCUS Telecom Technology andServices Atlanta Los Angeles Washington, DC

U.S. Communications Service Provider QuarterlyBy Richard Pierce, FOCUS Managing Director and Telecom Technology and Services Team LeaderFOCUS believes that the need for communications services has never been greater. Large enterprises, small andmedium sized businesses, and individuals have all come torely upon ubiquitous access to voice, video, and data services to run their day-to-day activities. Furthermore, theimportance of Communications Service Providers (CSPs)appears poised to increase further as they begin to enable avariety of new services ranging from hosted PBX and videoconferencing platforms to in-home security and energymanagement solutions. Has a breadth of knowledge that covers most segmentsof the telecom industry,Access to capital and the benefits of scale will mean thata small number of large companies will continue to dominate certain areas such as mobile wireless and video. However, FOCUS continues to see opportunities for middlemarket CSPs. While not as large as the industry giants,they continue to thrive by developing innovative businessmodels that share one or more characteristics such as capital efficiency, customer responsiveness, an advanced technology platform and a focus on an underserved industryvertical or geography. Leverages an experienced team of research professionals,and Has bankers with C-level operating experience in thetelecom industry, Has a proven transaction methodology for deliveringresults, Is equally comfortable with buy side and sell side M&A, Has a national presence with coverage of both east andwest coasts.Sub Sector DefinitionsLarge Cap: Large, diversified communications service providers that control a significant number of former RBOCaccess lines and/or have a nationwide wireless operation.Furthermore, it often is the middle market CSPs thatpoint the direction for the future of the industry. FOCUSis proud of its commitment to the CSP sector and we areexcited about the prospects for middle market companiesin this space.Alternative Telecom: Competitive carriers that primarily provide basic voice, data and transport services to businesses and other telecom service providers.Hosted and Managed Services: Companies that providehosted VoIP telecom services as well as additional hostedofferings such as audio and video conferencing.The FOCUS Telecom Technology and Services groupconsists of four professionals with a mix of backgroundsthat include both C-level operating expertise and experience at leading middle market investment banks. TheFOCUS Telecom team is uniquely qualified to help middle market clients reach their strategic objectives becausethe group:ILEC and Diversified ILEC: Non-RBOC incumbentcarriers, many of which have branched out into other sectors of communications services.Cable and Video: Incumbent cable service providers, satellite video providers, and competitive video providers whosecore business is providing video services to residential customers. Devotes significant senior level resources to executingtransactions for lower middle market clients, Atlanta Los Angeles Washington, DC2

Summary CommentsPublic MarketsHosted and Managed ServicesThe FOCUS Communications Service Provider Index(CSPI) broke its string of two straight reporting periods innegative territory with a three month gain of 1.5%. Evenso, the CSPI still lagged the broader indices as the S&P500 gained 4.0% and the NASDAQ gained 5.8% duringthe corresponding time period. For the full year, the CSPIwas flat. This performance once again compares unfavorably to the S&P 500 and NASDAQ, both of whichenjoyed strong year-over-year gains. Sector multiples areup slightly compared to the prior year. The sector revenuemultiple increased from 2.4x to 2.5x, while the sectorEBITDA multiple went from 7.3x to 7.7x.Other than the Large Cap sub sector, the Hosted andManaged Services sub sector was the only other component of the CSPI that managed to turn in a positive returnfor the current reporting period. The sub sector gained1.3% in the past three months. RingCentral and Vonagewere the two-star performers, turning in gains of 14.2%and 24.5%, respectively. On the other end of the spectrum,j2 Global and Glowpoint both suffered double digit losses.The Hosted and Managed Services sub sector remains innegative territory for the full year with a drop of 6.5%. Thechief culprit for this substandard performance was Twilio,which has shed more than half of its value over the pastyear. One of the reasons for the sub sector’s decline in thepast year is that multiples have contracted. The sub sectorrevenue multiple fell from 3.8x a year ago to 3.4x currently,while the sub sector EBITDA multiple dropped from17.2x to 16.9x over the same time period.Large CapAfter a difficult summer reporting period, the Large Capsub sector bounced back in the fall to post a three monthgain of 6.0%. This was good enough to make it the topperforming sub sector for this reporting period. Verizonwas the sub sector’s top performer with a gain of 10.8%,while AT&T notched a 3.8% gain. CenturyLink andSprint did not fare as well, dropping 20.9% and 5.2%,respectively. The sub sector remains in negative territoryfor the year with a drop of 5.0%. Over this time frame,Sprint was the only company in the index in positive territory. Sub sector multiples closed out the period at 2.4xrevenue and 7.2x EBITDA. Both represent increases fromyear-ago multiples of 2.3x revenue and 6.8x EBITDA.ILEC and Diversified ILECThe ILEC and Diversified ILEC sub sector had yetanother difficult reporting period as it dropped 7.6% inthe past three months. Frontier continued to be the worstperforming stock in the index with a 32.2% drop for theperiod, but Consolidated Communications also dropped11.1%. The sub sector’s year-over-year performance alsowas dismal with a drop of nearly 40%. Sub sector multiplesare down steeply from this same time last year. Year-agomultiples for the sub sector were 2.3x revenue and 7.3xEBITDA. These have plummeted to 1.7x revenue and5.4x EBITDA at the end of the current reporting period.Alternative TelecomThe 7.7% drop in the Alternative Telecom sub sector overthe past three months made it the CSPI’s worst performing sub sector over this time period. Large drops at Level3 (down 10.1%), Uniti (down 41.7%), and Windstream(down 54.4%) served to drag down the index. Even so,there were still some bright spots this period as Boingo,Cogent Communications, and Zayo all experienced doubledigit gains. Over the past 12 months, the AlternativeTelecom sub sector is up 4.6%. Five of the seven stocksin the index had strong gains during this period, but onceagain steep losses at Windstream and Uniti had a negativeimpact on sub sector performance. Sub sector multiples areup slightly year-over-year. The sub sector revenue multipleended the period at 3.6x (up from 3.5x a year ago) whilethe sub sector EBITDA multiple was 10.0x (up from 9.4xa year ago).Cable and VideoThe Cable and Video sub sector also had a rough go of itin our fall reporting period as the sub sector dropped 4.1%.Altice, Dish Network, and WOW all suffered doubledigit declines. On the plus side, both Charter and General Communication delivered solid gains. Even after thisperiod’s losses, the sub sector remains in positive territoryfor the year with a gain of 12.9%. Multiples also are higher,with the sub sector revenue multiple increasing from 2.7xto 3.0x over the past year and the sub sector EBITDAmultiple increasing from 8.8x to 9.5x over the same Atlanta Los Angeles Washington, DC3

U.S. Communications Service Provider Sector: Public Market SummaryTwelve Month Index ReturnsSector and Sub Sector Returns150.0012 MonthCommunications Service ProviderLarge Cap100.00Alternative TelecomHosted and Managed Services50.00ILEC and Diversified ILECCable and Video0.003 %12.9%-4.1%S&P 50016.2%4.0%NASDAQ22.3%5.8%Communications Service ProviderS&P 500 IndexNASDAQ IndexRevenue Multiple TrendsSector and Sub Sector Revenue munications Service Provider2.5x2.4xLarge Cap2.4x2.3xAlternative Telecom3.6x3.5xHosted and Managed Services3.4x3.8xILEC and Diversified ILEC1.7x2.3xCable and Video3.0x2.7x0.5x0.0xEnterprise Value/RevenueEBITDA Multiple TrendsSector and Sub Sector EBITDA Multiples9/30/201710.0x8.0x6.0x4.0xCommunications Service Provider7.7x7.3xLarge Cap7.2x6.8xAlternative Telecom10.0x9.4xHosted and Managed Services16.9x17.2xILEC and Diversified ILEC5.4x7.3xCable and Video9.5x8.8x2.0x0.0xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, DC49/30/2016

U.S. Communications Service Provider Stocks: M&A SummaryM&AHosted and Managed ServicesAlternative TelecomILEC and Diversified ILECThe final M&A tally for the Communication ServiceProvider sector for our fall reporting period was a solid 20total transactions with a total announced transaction dollar volume of 9.9 billion. For year-to-date 2017, we count57 transactions with a total announced transaction dollarvalue of 23.8 billion. This puts 2017 on pace to be one ofour more active years in the last five in terms of the totalnumber of transactions. Conversely, the announced M&Atransaction dollar volume for 2017 is on pace to be one ofthe lower years in the last five.The Hosted and Managed Services sub sector also wasactive this reporting period with five total deals. Most ofthese transactions were for smaller hosted voice providersincluding the nexVortex acquisition of the hosted voicebusiness from Northwest VOX, the Packet Fusion acquisition of Advanced Call Processing, the Ntiva acquisitionof IN Communications, and the acquisition of VoIPTelCommunications by RMK Consulting. In addition, Intermedia acquired AnyMeeting, a provider of web and videoconferencing solutions.The pace of M&A activity in the Alternative Telecom subsector continued to increase as the sub sector had 10 transactions in the most recent three months. The blockbusterdeal in the sub sector, and also the single largest transaction this reporting period, was Crown Castle’s 7.1 billionacquisition of Lightower Fiber Networks. The move continues Crown Castle’s aggressive push into the fiber infrastructure space. Other significant deals in the fiber spaceinclude EQT Infrastructure’s acquisition of Spirit Communications, FirstLight Fiber’s acquisition of 186 Communications, and Verizon’s acquisition of fiber assets in theChicago region from WOW. On the asset light side of theledger, Fusion Communications announced its intention tomerge with Birch Communications in a transaction valuedat nearly 740 million.The only transaction in the ILEC and Diversified ILECsub sector this reporting period was Cincinnati Bell’sacquisition of Hawaiian Telecom. The enterprise value forthis transaction was just north of 650 million.Cable and VideoThe Cable and Video sub sector continued to be activewith four transactions for the period. The most visible ofthese was the acquisition of Metrocast by Cogeco Cablefor 1.4 billion. The remaining deals all were for smallerproperties. These were the acquisition by Block Communications of Ripley Video Cable Company in Mississippiand the acquisitions by Telephone and Data Systems ofboth K2 Communications and Crestview Communications operating out of Colorado and Central Oregon,respectively.continued on page 6U.S. Communication Service Provider Sector: M&A SummaryM&A Activity: Number of TransactionsM&A Activity ( Value of Transactions in Millions)10080 200,000.0747769 151,061.070 150,000.0 131,485.05760 100,000.040 46,335.1 50,000.020 23,806.7 6,686.5 Atlanta Los Angeles Washington, DC52016Through9/30/17

Transactions with Announced Multiplesinfrastructures. In addition, the acquisition of Metrocastby Cogeco Cable also went for healthy multiples of 1.7xrevenue and 11.6x EBITDA. The lowest multiple transaction was for incumbent provider Hawaiian Telecom. Thistransaction was done at 1.7x revenue and 6.0x EBITDA.While low in comparison to our other sub sectors, the dealcertainly is in line with asset values we are seeing in theILEC and Diversified ILEC sub sector.We counted three transactions with announced multiples this reporting period. Not surprisingly, the highestmultiple was for fiber infrastructure provider LightowerNetworks. This transaction was done at 8.3x revenueand 13.7x EBITDA, which continues the trend of highmultiples for companies that have built out robust fiberM&A Announced Transactions (4/1/17 – ctorDescriptionPacket FusionAdvanced Call Processing9/26/17Hosted & ManagedServicesClarus CommunicationsInnovative TelecomConsultants9/21/17Alternative TelecomNAOffers telecommunications solutions through partnerships with more than 100service providers.Quant HouseVictory Networks9/21/17Alternative TelecomNADesigns, implements and manages high-speed networks for bulge-bracketbanks, boutique financial firms and hedge funds.Metro PartnersSkywire Networks9/14/17Alternative TelecomNAProvides fixed wireless broadband services in New York City.NAWeb and video conferencing and webinar services.NAOffers unified communications services and solutions.IntermediaAnyMeeting9/6/17Hosted & ManagedServicesBlock CommunicationsRipley Video CableCompany9/5/17Cable and VideoNAOffers digital cable television, Internet and digital phone service in Ripley,Mississippi.NtivaIN Communications9/5/17Alternative TelecomNATelecom provider specializing in business communications and collaborationsolutions.Telephone & DataSystemsK2 Communications9/5/17Cable and VideoNAProvider of broadband, video and voice products.FusionTelecommunicationsBirch Communications(Business Cloud andCommunications Assets)8/28/17Alternative Telecom 739.1Fixed-line telephone, wireless and broadband Internet as well as wholesaletelecom services for businesses in the U.S.nexVortexNorthwest Vox (HostedVoice Business)8/15/17Hosted & ManagedServicesNAProvider of hosted voice services.RMK ConsultingVoIPTel Communications8/12/17Hosted & ManagedServicesNAProvides telecommunications hosting services including enterprise class VoIP,SIP and cloud-based PBX.EQT InfrastructureSpirit Communications8/9/17Alternative TelecomNAProvider of fiber-based data and broadband services to enterprises,governments and wireless carriers in the Carolinas and Georgia.Telephone & DataSystemsCrestview CableCommunications8/4/17Cable and VideoNAProvides broadband internet, cable TV and wireline access for consumers andbusinesses in Central Oregon.Verizon CommunicationsWideOpenWest (ChicagoFiber Assets)8/1/17Alternative TelecomNAFiber network covering more than 500 macro-cell wireless sites and more than500 small-cell wireless sites in the Chicago area.ExteNet SystemsAxiom Fiber Networks7/26/17Alternative TelecomNAOperates a fiber network in the greater New York City metropolitan region.Crown CastleLightower Fiber Networks7/18/17Alternative Telecom 7,100.0Fiber networking solutions for offices, data centers, cloud providers and carriers.FirstLight Fiber186 Communications7/12/17Alternative TelecomNAOperates 1,900 route miles of fiber-optic bandwidth infrastructure inMassachusetts, New Hampshire and Vermont.NetForwardRRB Telecom7/11/17Hosted and ManagedTelecom ServicesNAProvides fully managed business phone systems, voice over Internet protocolservices and shared hosted phone services.Cincinnati BellHawaiian Telecom7/10/17Diversified ILEC 653.2Provides communications services and products to residential and businesscustomers in Hawaii.Cogeco CableMetrocast7/10/17Cable and Video 1,400.0Operates digital cable and communications networks that offer video,broadband Internet, digital phone and business ternative TelecomNASupplies internet and telephone services to business and residences.GTTPerseus6/1/17Alternative Telecom 40.5Provides high-speed network connectivity services focusing on financialservices and eCommerce companies.LOGIX CommunicationsAlpheus Communications5/30/17Alternative TelecomNAOperates a metro-regional fiber network in Texas with 2,800 route miles oflong-haul fiber and 1,900 route miles of metro fiber.ControlScanEchoSat CommunicationsGroup5/25/17Alternative TelecomNASecure data communication services for the convenience-store, petroleum,retail, utility and grocery markets in the United Atlanta Los Angeles Washington, DC6

M&A Announced Transactions (4/1/17 – 9/30/17) PriceDescriptionRCN CorporationWave Broadband5/23/17Cable and Video 2,365.0Provides video, Internet and phone services to customers in Washington, Oregonand California.Apollo GlobalManagementWest Corporation5/9/17Hosted & ManagedServices 4,950.0Telecommunications and hosted conference call and online messaging servicesand contact center services for businesses.Digerati TechnologiesT3 Communications5/9/17Hosted & ManagedServicesNACloud communication and broadband solutions in Southwest Florida.EATELCORPClear ChoiceCommunications4/24/17Cable and VideoNAHigh speed Internet, digital phone and video services in Plaquemine, Louisiana.ConvergeOneRockefeller GroupTechnology Solutions4/18/17Alternative TelecomNAOffers voice, data, cloud computing, cabling, broadband transport, wireless,mobility and unified communications solutions.Crown CastleWilcon Holdings4/17/17Alternative Telecom 600.0Owns and operates a network with 1,900 route miles of fiber, primarily in LosAngeles and San Diego.WindstreamBroadview Networks4/13/17Alternative Telecom 201.8Provides communications and information technology solutions to small andmedium sized business and enterprise customers.ScanSourceKingcom (ChannelBusiness)4/10/17Alternative TelecomNASells communication solutions through the Verizon Partner Program.UnitiSouthern Light4/10/17Alternative Telecom 699.1Designs, builds, operates and maintains fiber optic infrastructure throughout theGulf Coast region.Wave BroadbandCascadelink4/6/17Alternative TelecomNADelivers high-speed connectivity to customers in multi-unit residential andoffice buildings in the Seattle area.Liberty GlobalGeneral Communication4/4/17Cable and Video 3,061.7Wireless, data, video, voice and managed services to residential customers,businesses and government entities primarily in Alaska.BAI CommunicationsinMOTION Wireless4/3/17Alternative TelecomNADesigns, builds, owns and operates wireless infrastructure to enable Wi-Fi andtelecom services for Boston rail and ferry Atlanta Los Angeles Washington, DC7

M&A Announced Transactions with Revenue Multiples (10/1/16 – riceRevenueMultipleEBITDAMultipleCrown CastleLightower Fiber Networks7/18/17Alternative Telecom 7,100.08.3 x13.7 xCincinnati BellHawaiian Telecom7/10/17Diversified ILEC 653.21.7 x6.0 xCogeco CableMetrocast7/10/17Cable and Video 1,400.06.1 x11.6 xGTTGlobal Capacity6/26/17Alternative Telecom 160.00.8 xNAApollo GlobalManagementWest Corporation5/9/17Hosted & ManagedServices 4,950.02.2 x7.6 xWindstreamBroadview Networks4/13/17Alternative Telecom 201.80.7 x4.5 xUnitiSouthern Light4/10/17Alternative Telecom 699.18.3 x17.1 xLiberty GlobalGeneral Communication4/4/17Cable and Video 3,061.73.3 x11.2 xUnitiHunt Telecom2/23/17Alternative Telecom 170.04.9 x11.3 xEQT InfrastructureLumos Networks2/20/17Alternative Telecom 869.54.2 x10.3 xConsolidatedCommunicationsFairpoint Communications12/5/16Diversified ILEC 1,467.61.8 x3.2 xGTTReliance Globalcom(Ethernet BusinessDivision)11/18/16Alternative Telecom 28.00.7 xNAFusionTelecommunicationsApptix11/15/16Hosted & ManagedServices 28.01.1 xNAWindstreamEarthLink11/7/16Alternative Telecom 1,019.11.0 x5.1 xOnvoyInteliquent11/2/16Alternative Telecom 671.82.1 x9.8 xCenturyLinkLevel 3 Communications10/31/16Alternative Telecom 34,725.84.2 x13.1 xMidcontinentCommunicationsWOW (Lawrence, KSOperations)10/21/16Cable and Video 215.04.7 x9.2 xDescriptionFiber networking solutions for offices, data centers,cloud providers and carriers.Provides communications services and products toresidential and business customers in Hawaii.Operates digital cable and communications networksthat offer video, broadband Internet, digital phone andbusiness services.Provides network integration and network-basedmanaged services to telecommunication carriers andbusinesses.Telecommunications and hosted conference call andonline messaging services and contact center servicesfor businesses.Provides communications and information technologysolutions to small and medium sized business andenterprise customers.Designs, builds, operates and maintains fiber opticinfrastructure throughout the Gulf Coast region.Wireless, data, video, voice and managed services toresidential customers, businesses and governmententities primarily in Alaska.2,600 fiber route miles in Louisiana that provide datatransport to K-12 schools and government agencies.Provides fiber-based bandwidth infrastructure andservices in the Mid-Atlantic region.Communications services to business, wholesale andresidential customers in 17 states.Provides Ethernet connectivity services.Provider of hosted business communication,collaboration and IT solutions to businesses of allsizes.Managed network, security and cloud services tobusiness and residential customers.Provides voice telecommunications services on awholesale basis including local transit, long distance,switched access and toll-free.Facilities-based provider of communications servicesincluding Internet services, virtual private network andEthernet.Offers high-speed Internet, cable television, phone,business data, voice and cloud services to residentialand business Atlanta Los Angeles Washington, DC8

Sub Sector Analysis: Large CapTwelve Month Index ReturnsCompany Returns12 Month150.00100.00Large Cap -5.2%Verizon-4.8%10.8%CenturyLink50.003 Month0.00Large CapRevenue Multiple TrendsCompany Revenue Multiples9/30/20173.0x2.0x1.0x9/30/2016Large Cap 1.9x1.8xVerizon2.6x2.4x0.0xEnterprise Value/RevenueEBITDA Multiple TrendsCompany EBITDA Multiples9/30/201710.0x8.0x6.0x4.0x2.0xLarge Cap 5.9x6.2xVerizon7.2x6.4x0.0xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, DC99/30/2016

Sub Sector Analysis: Alternative TelecomTwelve Month Index ReturnsCompany Returns12 Month150.00Alternative Telecom IndexBoingo100.0050.000.003 Month4.6%-7.7%107.9%42.8%Cogent Communications32.8%21.9%GTT34.5%0.0%Level %Zayo Group15.9%11.4%Alternative TelecomRevenue Multiple TrendsCompany Revenue Multiples9/30/20174.0x9/30/2016Alternative Telecom Index3.6x3.5x3.0xBoingo4.8x2.7xCogent Communications5.8x4.8x2.0xGTT3.7x2.6xLevel 33.4x3.2xUniti7.5x8.9xWindstream2.0x2.0xZayo Group6.3x6.0x1.0x0.0xEnterprise Value/RevenueEBITDA Multiple TrendsCompany EBITDA Multiples9/30/201715.0xAlternative Telecom .3xLevel 310.5x9.8x9.1x9.9xWindstream6.0x5.7xZayo Group13.9x13.3xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, DC109.4xCogent CommunicationsUniti0.0x10.0x9/30/2016

Sub Sector Analysis: Hosted and Managed ServicesTwelve Month Index ReturnsCompany Returns150.00Hosted & Managed Services Index8x8Glowpointj2 GlobalRingCentralTwilioVonageWest Corporation100.0050.0012 Month-6.5%-12.5%-10.6%10.9%76.5%-53.6%23.1%6.3%3 sted & Managed ServicesCompany Revenue MultiplesRevenue Multiple Trends4.0xHosted & Managed Services Index8x8Glowpointj2 GlobalRingCentralTwilioVonageWest 9x2.2x0.0xEnterprise Value/RevenueEBITDA Multiple TrendsCompany EBITDA MultiplesHosted & Managed Services Index8x8Glowpointj2 GlobalRingCentralTwilioVonageWest Corporation15.0x10.0x5.0x0.0xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, 01617.2x276.5x344.4x9.9xNMNM16.3x7.5x

Sub Sector Analysis: ILEC and Diversified ILECCompany ReturnsTwelve Month Index Returns12 Month150.00ILEC & Diversified ILEC IndexAlaska Communications SystemsConsolidated Communications100.00Cincinnati BellFrontier50.00Lumos NetworksOtelcoTelephone & Data Systems0.003 1%-32.2%28.0%0.3%120.8%26.0%2.6%0.5%ILEC & Diversified ILECRevenue Multiple TrendsCompany Revenue Multiples9/30/20173.0x2.0x1.0x0.0x9/30/2016ILEC & Diversified ILEC Index1.7x2.3xAlaska Communications Systems1.3x1.1xConsolidated Communications3.9x3.5xCincinnati Bell1.7x1.8xFrontier1.9x2.8xLumos Networks4.0x3.5xOtelco1.6x1.4xTelephone & Data Systems1.1x1.0xEnterprise Value/RevenueEBITDA Multiple TrendsCompany EBITDA Multiples9/30/201710.0x8.0xILEC & Diversified ILEC Index5.4x7.3xAlaska Communications Systems5.2x4.7xConsolidated Communications6.0xCincinnati BellFrontier4.0xLumos Otelco4.1x3.6xTelephone & Data Systems5.7x5.3xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, DC129/30/2016

Sub Sector Analysis: Cable and VideoTwelve Month Index ReturnsCompany Returns12 Month150.00Cable & Video IndexAltice100.0012.9%-4.1%NA-15.8%Charter Communications34.6%9.3%Comcast16.0%-1.1%Dish Network50.003 MonthGeneral Cable & VideoCompany Revenue MultiplesRevenue Multiple Trends9/30/20174.0x9/30/2016Cable & Video Index3.0x2.7x3.0xAltice4.6xNACharter Communications4.1x6.9x2.0xComcast2.9x2.7xDish Network2.7x2.4x1.0xGeneral Communication3.2x2.1xWOW3.0xNA0.0xEnterprise Value/RevenueCompany EBITDA MultiplesEBITDA Multiple Trends12.0x9/30/2017Cable & Video Index10.0x8.0x9.5x8.8xAltice11.6xNACharter Communications11.4x18.0x8.8x8.3xDish Network13.3x11.5xGeneral 0.0xEnterprise Value/EBITDASource: Capital Atlanta Los Angeles Washington, DC139/30/2016

FOCUS Telecom Technology and Services TeamDavid FreelandRichard H. PierceManaging Director and TelecomTechnology and Services Team Leader,Washington, [email protected] Pierce has more than ten yearsof investment banking experienceadvising middle market clients on avariety of mergers and acquisitionsand capital raising transactions. During that time, Mr. Pierce’s primary emphasis has been onserving clients in the telecommunications industry including providers of network related hardware and softwareproducts, wireless, and wireline telecommunications serviceproviders and network engineering and construction companies.Principal, San Francisco, 837David Freeland, a FOCUS Principal,has more than fifteen years of experience providing investment bankingand management consulting servicesto a variety of corporate clients,ranging from the Fortune 500 tostart-up businesses. He has been aninvestment banker since 2003, advising clients on mergersand acquisitions and capital raising transactions. Mr. Freeland has broad experience in the telecom and technologyindustry and has significant experience with data centercompanies.John T. BradshawManaging Director, Washington, [email protected] Oganesoff has conducted overforty M&A, debt, and capital raisetransactions with an aggregate valueof over 300 million and has servedas the CEO or President of severalcompanies. Mr. Oganesoff has overtwenty years of senior executive levelexperience in leading businesses ranging from wirelesssolutions, software, and RFID services to manufacturing,industrial products, energy, and environmental productsand government contracting.Eric M. OganesoffPartner, Bend, hn Bradshaw has over 30 yearsexperience in sales, marketing,manufacturing, finance, and systems engineering with corporationsspecializing in technology-drivenbusiness products and services. Mr.Bradshaw has been a successfulsenior executive and manager in both large and small organizations, and has spent the last 15 years workingwith entrepreneurial companies. M

they continue to thrive by developing innovative business models that share one or more characteristics such as capi-tal efficiency, customer responsiveness, an advanced tech-nology platform and a focus on an underserved industry vertical or geogra