1. 2:00 P.M. – WEDNESDAY, APRIL 25, 2012 ENTERPRISE WIRELESS ALLIANCE EMMITSBURG, MARYLAND MCLEAN, VIRGINIA Do We Still Have a 470-512 MHz Home?

2. Presenters Mark E. Crosby President/CEO Enterprise Wireless Alliance Elizabeth R. Sachs, Esq. EWA Regulatory Counsel Lucas, Nace, Gutierrez & Sachs, LLP 2

3. Middle Class Tax relief and Job Creation Act of 2012 “The Spectrum Reform Bill”  700 MHz commercial “D Block” reallocated for public safety  First Responder Network Authority (FirstNet) established within NTIA  $7B+ from broadcast spectrum auction provided FirstNet for nationwide system deployment and operation  FCC provided “incentive auction” authority  FCC directed to utilize reverse auctions 3

4. Middle Class Tax relief and Job Creation Act of 2012 “The Spectrum Reform Bill”  Nine years after enactment (February 22, 2021) FCC shall reallocate the 470-512 MHz spectrum (T-Band) “currently used by public safety eligibles and auction this spectrum”  Auction proceeds will be available for NTIA to provide grants to cover public safety relocation costs Critical Observations  No mention of Industrial/Business (“I/B”) usage – but assume I/B systems will need to relocate as well  No mention of alternative comparable spectrum to accommodate either public safety or I/B relocated systems 4

5. FCC and Industry Responses  FCC appoints Incentive Auction Task Force -Ruth Milkman/Gary Epstein serve as Co-Chairpersons -Economic and auction experts retained to assist effort -120 MHz of broadcast spectrum targeted for broadband  FCC establishes Technical Advisory Board for first responder interoperability  FCC issues PN seeking comment on transfer of PS broadband license from PSST to FirstNet 5

6. FCC and Industry Responses  APCO requests FCC to relieve PS T-Band licensees from obligation to narrowband  Chicago requests FCC for “Advisory Opinion” on which band(s) it should consider as available for relocation  LMCC appoints T-Band Working Group to assist FCC in its deliberations 6

7. FCC and Industry Responses  FCC announces that it will soon issue a blanket narrowbanding exemption for both PS and I/B T-Band systems  FCC announces that it will soon “freeze” both PS and I/B applications for new systems and applications from incumbent licensees seeking either additional spectrum or geographic coverage Critical Observations  FCC is responding very quickly to these legislative mandates  PS and I/B licensees treated the same (initially)  Responses are best made following a careful review of the actual written FCC notices 7

8. What’s at Stake  For I/B and PMRS carrier incumbents, there are … -281 unique licensees operating -910 unique call signs (systems) utilizing -7,556 unique frequencies at -431 unique sites  Eleven (not thirteen!) markets, specifically -Boston-Chicago -Dallas/Ft. Worth-Houston -Los Angeles-Miami -New York-Philadelphia -Pittsburgh-San Francisco -Balt/Washington 8

9. Near Term Issues  Narrowbanding Exemption -Those who already invested in narrowband may be able to recoup that cost (relocation reimbursement) -Current or planned initiatives perhaps should continue in order to gain spectrum efficiency and new device features -Need to interpret impact of forthcoming licensing freeze policy language  Licensing Freeze - Not a lot of spectrum or geographic capacity remaining -More capacity through digital transition – considered more spectrum? -Pending applications at FCC? 9

10. Long Term Alternatives  Would a future Congress change the law regarding repurposing the 470-512 MHz band? - Unlikely if "broadband at all costs” fervor continues unabated -470-512 MHz spectrum and affected markets are considered beach front property -Auction revenues are always welcome - PS would rather gain 10 MHz than retain T-Band  Critical questions for I/B licensees -Is there comparable exclusive spectrum where I/B systems may migrate? (Unused PS spectrum?) -What is the source(s) of I/B system relocation funding? -Will the FCC pay attention to I/B licensee interests? 10

11. Long Term Alternatives Accommodating I/B Requirements  Overlay auctions -Mandated relocation by auction winner to comparable spectrum with full reimbursement or at set compensation levels -Voluntary relocation by auction winner subject to negotiations -Auction winner protects incumbent systems  Voluntary participation in T-Band auctions -Incentive auction -Reverse auction 11

12. Final Observations  The FCC admits that interpreting the provisions of the legislation is a challenging exercise  Rules and policies will be subject to public comments through regulatory proceedings – including how I/B incumbents are treated  In the past, the wireless capacity and financial needs of incumbents in repurposed bands have been reasonably accommodated  A percentage of I/B incumbents are pleased with thisnine to eleven year exit strategy  EWA will be an advocate on behalf of I/B and commercial licensees throughout the process – comments and recommendations are always welcome! 12

13. Contacting EWA www.enterprisewireless.org 800.482.8282 703.797.5114 – Mark Crosby mark.crosby@enterprisewireless.org Membership membership@enterprisewireless.org Bi-Weekly Regulatory Calls, Insider E-newsletter, Special Bulletins 13

14. Thank you! Questions? 14