Management, page-15

Hi Daniel,

I fully agree with Adam and would add that on top of the structural industry challenges it appears that the board may not have identified the most appropriate skill set needed in the latest management change. The previous CEO, Thodey, made a number of tactical and strategic changes (Finalizing sale to Gov, ramping 4g early, big press on mobile, small acquisitions and partial acquisitions, exiting some areas, apparent keen focus on customers, etc etc.) While it was not perfect it was enough to stabilize the company and reward the shareholders.

When they chose a classic CFO to be the new CEO perhaps they missed an opportunity to find a strategic thinker to better position the company for long term success. Instead it appears to be a game of tactical cost cutting with multiple rounds.

Now I am not saying it is easy... far from it - just that it may have been better to choose a forward thinking strategist who could deliver value by better positioning the company over time. It is not apparent, at least to me, what strategic change is in the works to deliver durable revenue and earnings growth with the current assets and team. It just looks like a steady ramp down which is a scary place for a shareholder.