3. In 1999, the $835 billion market for telecommunications services consisted of three segments based on the mode of transmission. Wireline communication systems utilized terrestrial cable and fiber-optic technology to transmit voice and data signals. In contrast, wireless and satellite systems used radio systems and satellites, respectively, for transmission, along with Wireline infrastructure to route calls. Exhibit 2 provides details on the size, historical growth rates, and expected future growth rates of each segment.1 1. Based on similar projections, and an assumed private market discount of 15%, to 20% (only 8.5% of Iridium's shares were publicly traded at the time), four out of five analysts surveyed had buy recommendations for Iridium: Salomon Smith Barney, CS First Boston, Merrill Lynch, and Lehman Brothers had price targets of $60, $67, $68 and $75, respectively, using free cash flow discount rates (i.e., weighted average costs of capital, WACCs) ranging from 17% to 25%. Only CIBC Oppenheimer had a hold recommendation. John Coates, the bullish analyst at Salmon Smith Barney, wrote: "Iridium presents a clear investment opportunity. ... Accordingly, we reiterate our buy rating, maintain our $60 price target, and offer 10 reasons to buy the stock immediately."!I