Proposed New ITFS/MMDS Band Plan Edwin N. Lavergne, Esq. Shook Hardy and Bacon, LLP Washington, DC National ITFS Association Annual Meeting Wyndham Harbor Island Hotel, Tampa, Florida February 18, 2003

The Process That Led To The White Paper n Teamwork n + Technical Expertise n + Adherence to Core Principles n + A Need to Compromise n = White Paper

Teamwork n In April 2002, the WCA established the Technical Rules Revision Task Force. n The Task Force included a diverse array of talented engineers who worked together to explore the technical feasibility of making significant changes to the 2.5 GHz band.

Technical Expertise n Members of the Task Force included representatives from the WCA, NIA, and CTN, as well as equipment vendors, engineers and consultants. n Over 50 conference calls and meetings were held over a 6-month period. n Thousands of hours were devoted to crafting proposals that would meet the needs of a diverse constituency.

Adoption of Core Principles n Once the technical analysis was complete, commercial operators and educators had to evaluate the legal and policy implications of a revised band plan and agree upon an appropriate regulatory framework. n This ultimately resulted in the adoption of eight core principles to guide the decisions of CTN and NIA.

Core Principles n 1.After the new rules are adopted, ITFS licensees must retain control over the same amount of spectrum in the 2.5 GHz band. n 2. After the new rules are adopted, ITFS licensees must be licensed on spectrum that will be used for all services that will be provided in the 2.5 GHz band.

Core Principles (Continued) n 3. If any spectrum in the 2.5 GHz band becomes “undesirable” after the new rules are adopted (e.g., guardband spectrum that is of little or no use to a licensee), ITFS licensees should not get a disproportionate share of such spectrum.

Core Principles (Continued) n 4. Adequate spectrum must be reserved for big stick downstream operations. n 5. All costs associated with implementing the new band plan must be paid for by commercial operators. n 6.Existing lease agreements must not be abrogated by the new rules.

Core Principles (Continued) n 7. The new rules must preserve the instructional purpose of the ITFS allocation and the national objective of providing schools with state-of-the-art communications technology. n 8. The new rules should not permit ITFS licensees to sell their spectrum to commercial interests.

Numerous Difficult Issues n Identifying Specific Costs to be Reimbursed by Commercial Proponents n Agreeing on New Interference Protection Criteria n Timing and Protection of Incumbent Rights During the Transition Process n Digitization Standards n Future Auctions and Build-Out Requirements n Involuntary modifications

A Need To Compromise n More efficient and flexible use of ITFS/MMDS spectrum will mean that licensees will have a better chance of keeping their spectrum in the long run. n Changes to the ITFS/MMDS band to permit mobile use will make the band more valuable.

Perhaps Not Perfect But a Reasonable Compromise n “The white paper represents a complex series of compromises among a variety of competing interests – TDD proponents vs. FDD proponents, emerging MDS broadband providers vs. legacy MDS video providers, ITFS licensees seeking to deploy portable and mobile data services, vs. ITFS licensees more interested in preserving existing video operations, rural interests vs. urban interests, etc.” WCA/NIA/CTN Reply Comments at 4.

Geographic Licensing Scheme Two Overlapping PSAs

Geographic Licensing Scheme Three Overlapping PSAs

Multiple PSAs

Build-Out and Operational Requirements n White paper proposed that the current BTA build-out requirement immediately be suspended. n White paper proposed a substantial service standard for renewals. u A licensee that has provided substantial service during the term should be entitled to renewal, even if not providing substantial service at the time of renewal.