Spectrum Auctions and Opportunities National Spectrum Managers Association May 23, 2007

2 Spectrum Policy Overview Auction Results: AWS I Auctions Ahead: 700 MHz; AWS II Other Spectrum Opportunities Unlicensed Options Government Initiatives and Access

3 AWS-1 Auction Began on August 9, 2006; ended September 18, MHz Nationwide: / MHz 10 MHz and 20 MHz licenses – various license areas –License Term: 15 years –No mid-term construction requirement –“Substantial Service” must by provided by end of license term Spectrum in many areas must be cleared before use Simultaneous, multiple-round auction design (typical of past FCC auctions) Transparent bidding 104 Bidders won 1087 licenses, generating $13.7 Billion in revenues

4 BLOCK FREQUENCIES (MHz) SVC. # of AREA LICENSES Block A: 20 MHz / MSA/RSA 734 licenses Block B: 20 MHz / EA176 licenses Block C: 10 MHz / EA176 licenses Block D: 10 MHz / REAG 12 licenses Block E: 10 MHz / REAG 12 licenses Block F: 20 MHz / REAG 12 licenses TOTAL 1122 licenses AWS-1 Band Plan

5 Top 10 AWS-1 Auction Bidders T-Mobile – $4,182,312,000 Cellco Partnership d/b/a Verizon Wireless – $2,808,599,000 SpectrumCo LLC – $2,377,609,000 MetroPCS AWS, LLC – $1,391,410,000 Cingular AWS, LLC – $1,334,610,000 Cricket Licensee (Reauction), Inc. – $710,214,000 Denali Spectrum License, LLC – $365,445,000 Barat Wireless, LP – $169,520,000 AWS Wireless Inc – $115,503,000 Atlantic Wireless, LP – $100,392,000

6 Auctions Ahead: 700 MHz 108 MHz ( MHz) after Feb DTV transition –24 MHz to public safety –24 MHz already licensed to commercial interests –60 MHz to be auctioned no later than Jan Current Band Plan: Much is in Play

7 April 27 Order & FNPRM Order –Mixture of License Areas (REA, EA, CMA) –Various Auction and Technical Issues –Guard Band Flexibility FNPRM –Various Band Plans –Aggressive Geographic Build Out Requirements –Incumbent Eligibility Restrictions –Public Safety Spectrum Plan –Frontline –Open Access

8 Auctions Ahead: 700 MHz Now Five NPRMs in Play –Commercial – license areas, spectrum block, build out rules –Guard Band – reallocation, eliminate service and technical restrictions –Public Safety #1 – convert wideband channels to broadband –Public Safety #2 – national interoperable, broadband network on 12 MHz in current public safety spectrum –April 27 FNPRM Frontline –Auction a 10 MHz nationwide license and require: (1) build out of public safety broadband infrastructure; (2) open access, wholesale business plan on commercial spectrum Cyren Call –Reallocate 30 MHz of commercial spectrum to public safety Next Steps –Final order – likely June/July –Auction – by statute, auction no later than January 2008 and revenues to Treasury by June 2009

9 Mixture of License Areas

10 Other Auction Opportunities: AWS II 40 MHz in total; auction timing likely no earlier than 2009 H block ( / MHz) and J block ( / MHz) –Service rules pending (NPRM 2004) MHz –To date, AWS allocation only, no service rules NPRM issued yet M2Z proposal for MHz –Exclusive assignment in exchange for free broadband –Petitions to Deny and competing applications filed

11 Other Upcoming Auctions for Existing Services 220 MHz – 94 licenses total –93 EA licenses (including partial markets) – 100 kHz –1 EAG license – 150 kHz (formerly the IVDS service) – no auction details established at this time

12 Secondary Market Opportunities: Existing Bands in Flux WCS – / MHz (4 license blocks, 52 MEAs and 12 REAGs) –AT&T, Comcast, Sprint, Nextwave, Horizon Wi-Com BRS/EBS – MHz (multiple licensees) –Sprint, Clearwire, Nextwave MSS/ATC options –L-Band, Big LEO Band, S-Band –MSV, Inmarsat, Globalstar, Iridium, ICO, Terrestar

13 Unlicensed Opportunities “White Spaces” in TV Bands –Likely unlicensed –Likely fixed, at least to start (2009) MHz –Non-exclusive licensing with novel interference protection rules –Encumbrances New Options at 5 GHz –Additional 255 MHz –Complex Federal Government sharing

14 Federal Government Spectrum Reform President’s "Spectrum Policy for the 21st Century" initiative sets the following goals: –Economic growth; security; global leadership –Support for other vital U.S. needs in areas such as public safety, scientific research, Federal transportation infrastructure, and law enforcement. Key component is to promote more efficient and beneficial use of spectrum without harmful interference to critical incumbent users NTIA/FCC Spectrum Test Bed for new technology and sharing Spectrum Management Advisory Committee

15 State & Local Government Innovation Numerous test beds for blended or shared systems with commercial and state/local governments Northrop Grumman Trial in New York Bountiful opportunity for creative arrangements

16 Bryan Tramont (202) Wilkinson Barker Knauer, LLP 2300 N Street NW, Suite 700 Washington, DC