1. San Antonio: Striking the Balance FCC DAS/Small Cell Workshop May 3, 2016 Ron Nirenberg San Antonio City Councilmember Member, FCC-IAC

2. Identifying the Problem Improve Wireless Data Signal Wireless carriers need to increase data network coverage capacity. Current network capacity is spotty – red areas on map signify poor coverage due to heavy consumer data demand.  Poor coverage areas may change over time.  Network capacity needs vary by provider. Small cells and DAS antennas get closer to consumers. Wireless towers may not be best solution due to limitation on available sites. Wireless Signal Heat Map

3. Solution – Integration of Small Cells Integration of macro and small cell solutions into one network.  Tower Installations  Outdoor Small Cells  Enterprise Small Cells  Customer Micro Cells Small cell deployment requires access to:  Buildings  Poles  Rights-of-Way (ROW)

4. Opportunity for Partnership Carrier RequirementsCity Assets City-wide installation sites Access to poles Electricity connections Fiber backhaul Predictable city procedures Predictable ROW permitting Speed-of-deployment ROW throughout city City owns traffic light poles Traffic infrastructure has electricity connections Fiber lines run along ROW Control of ROW outside zoning process ROW permitting process exists Working with one landlord

5. Small Cell Business Models Carrier Small CellsDAS Outdoor System Individual small cells Carrier-owned equipment Private RF to reach customer Carrier licenses ROW use Targets areas of poor coverage Requires backhaul service Carrier has direct relationship with City (landlord) Greater flexibility to relocate equipment to meet evolving broadband needs System of interconnected antenna nodes via fiber DAS provider-owned system Private RF to reach customer Carrier leases space on DAS DAS provider sublicenses ROW Targets region of poor coverage Converts RF to optical signal in order to provide backhaul DAS has relationship with City

6. Framework for Win-Win Negotiations Goal should be License Agreement that benefits both parties. Develop expectation of honest and open communications: –Need to understand impact of business plan on city operations. –May lead to develop relationship of trust. –Confidentiality agreement promotes information sharing. City is entitled to receive fair compensation for use of ROW. Provider should be respectful of City’s: –Historic & cultural resources –Local regulations & processes City should be sensitive to company’s: –Business plan –Network architecture requirements

7. What’s Happening Now State of deployment, Master License Agreement Master License Agreement Terms –Grant of License –Define Scope of Permitted Uses –ROW Rental Fee –Protection of City Resources –Contract Term –Each Installation Subject to Its Own Sublicense –Application Approval Process –General Provisions Deployment in San Antonio –DAS slows, small cells proliferate

8. Summary Conclusion The deployment of small cell technology offers local governments an opportunity to partner with industry. Cooperation should lead to agreement that benefits both parties. Sharing information is key in reaching a win-win agreement. Lack of knowledge on either side leads that party to take the most conservative position to protect its interests. The appropriate rent takes many factors into account. Developing predictable procedures benefits both parties. Texas PUC will soon rule on pending DAS cases providing guidance to cities and the industry. License agreement should include provision protecting confidentiality of governmental critical infrastructure data.