1. www.khlaw.com Washington, DC ● Brussels ● San Francisco ● Shanghai Wesley K. Wright Attorney Keller and Heckman LLP 1001 G Street NW Suite 500 West Washington, DC 20001 +1 202.434.4296 wright@khlaw.com Top Ten Spectrum Issues for Utilities October 3, 2012

2. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20122 Top Ten Spectrum Issues for Utilities

3. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20123 TEN

4. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20124 Number 10: 700 MHz Band  Middle Class Tax Relief and Job Creation Act of 2012 (passed Feb. 2012) Established First Responder Network Authority (“FirstNet”) Allocated 10 MHz of Spectrum to FirstNet –Public Safety Spectrum (763-768 MHz / 793-798 MHz) –D Block (758-763 MHz / 788-793 MHz) Provided $7 billion to assist Public Safety Network Buildout

5. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20125 Number 10: 700 MHz Band  FirstNet governed by 15-person Board of Directors Secretary of Homeland Security, Attorney General and Director of Office of Management and Budget 12 remaining appointees named in August –Samuel Ginn, Chairman –Tim Bryan, CEO of National Rural Telecommunications Cooperative NRTC members include rural power cooperatives and telecommunications operators.

6. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20126 Number 10: 700 MHz Band  Next Steps: FirstNet issues Request for Proposals Timetable for construction (factoring in rural buildout), coverage areas, service levels and performance criteria Provide Governor of each State –Planned buildout natiowide and in the State –Funding level for the State Within 90 days, State can –Participate in the Plan and accept funding, or –Opt out and conduct its own FCC-approved deployment

7. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20127 Number 10: 700 MHz Band  Utilities Wishing to Access 700 MHz Spectrum on shared basis with Public Safety Network planning, deployment and operation largely handled on local/State level Reach out to point(s) of contact within State

8. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20128 Nine

9. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 20129 Number 9: Microwave Audit  The Act required FCC and GAO to determine whether 11 GHz, 18 GHz and 23 GHz bands are being used efficiently Determine number of applications submitted by common carriers for frequency assignments that were not successfully coordinated and filed with FCC Used by critical infrastructure entities for point-to-point microwave systems

10. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201210 Number 9: Microwave Audit  FCC Public Notice June 20 Comments: –AT&T and Sprint: No problems; never required to modify an initial request for a link due to spectrum unavailability –Comsearch: Rejection rate is very small. They are able to accommodate most applicants (private and common carrier) and the bands are efficiently used.  GAO expected to issue report assessing whether Gov’t receives maximum revenue

11. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201211 Eight

12. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201212 Number 8: T-Band Licensing Freeze  The Act calls for the public safety T-Band spectrum (470-512 MHz) to be reclaimed and auctioned by the FCC in the next nine years Licensed to Public Safety and Critical Infrastructure entities in major metro areas  April 2012 T-Band Licensing Freeze

13. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201213 Number 8: T-Band Licensing Freeze  Affected Applications are those that would Increase the degree to which the band is currently licensed –Applications for new licenses –Applications seeking to add or change frequencies –Applications expand existing footprint  Not Impacted –Renewal applications –Deleting frequencies –Changing number of mobile units

14. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201214 Number 8: T-Band Licensing Freeze  If T-Band licensee seeks to modify existing system, seek waiver Extremely high bar to preserve spectral landscape knowing auction on horizon

15. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201215 Seven

16. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201216 Number 7: T-Band Narrowbanding  T-Band licensees not required to narrowband FCC has not determined how or when licenses will be reclaimed and auctioned

17. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201217 Six

18. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201218 Number 6: Narrowbanding  Affected Licensees Public Safety and Industrial/Business licensees in the 150-174 MHz (VHF) and 421- 470 MHz (UHF) bands  By January 1, 2013 Voice Systems: migrate from 25 kHz (wideband) channel to 12.5 kHz (narrowband) channel bandwidth Data Systems: employ technology achieving 4800 bps per 6.25 kHz used

19. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201219 Number 6: Narrowbanding  Data Equivalency Standard: 4800 bps per 6.25 kHz used Ex. Emission Designator 16k (16 kHz-wide channel). –Standard applies to channel used –Equipment must be capable of transmitting approximately 12,300 bps (12.3 kbps)

20. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201220 Number 6: Narrowbanding  FCC Will Not Extend Narrowbanding Deadline 1995: original rules adopted 1997: narrowbanding equipment available 2004: January 2013 deadline announced  No Filing Fees or Frequency Coordination required for wideband to narrowband modifications

21. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201221 Number 6: Narrowbanding  Importance of Narrowbanding Interference –After January 1, 2013, non-compliant wideband systems will not be protected –May interfere with narrowbanded systems Reliability –Coordinators might ignore noncompliant systems in first quarter of 2013 FCC Enforcement –Potentially thousands of dollars per day

22. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201222 Number 6: Narrowbanding  FCC Requested Waivers be filed by Dec. 2011, will be strictly reviewed  If necessary, waiver should address: –Steps taken to plan for, initiate and complete narrowbanding –System Size –Whether system equipment is narrowband capable –Funding sources –Whether schedule is impacted by other systems b/c interoperability –Plans to minimize impact to co- and adjacent-channel licensees –If licensee plans to migrate to non-VHF/UHF spectrum (ex. 800 MHz), will it relinquish VHF/UHF spectrum –Proposed timetable for completion

23. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201223 Number 6: Narrowbanding  The narrowbanding rules provide for the eventual migration from 12.5 kHz to 6.25 kHz bandwidth FCC has not set deadline for 6.25 kHz transition No deadline is expected for several years

24. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201224 Five

25. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201225 Number 5: 4.9 GHz Rulemaking  June 2012: Report and Order and NPRM To determine if critical infrastructure entities should hold primary licenses in 4.9 GHz band –Band currently allocated to public safety licensees –Critical infrastructure entities may access under sharing arrangements for operations in support of public safety FCC proposes to remove these restrictions

26. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201226 Number 5: 4.9 GHz Rulemaking  Complement 700 MHz Sharing FCC asks whether fixed, backhaul and mobile uses in the 4.9 GHz band could complement 700 MHz public safety broadband spectrum  Authorizing Operations FCC sought comment on a number of options, including coordination, database registration and regional planning

27. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201227 Number 5: 4.9 GHz Rulemaking  Comments Primary Access: Several groups filed in support of primary access to 4.9 GHz band for CII entities 700 MHz Sharing: Promoted FirstNet access to 4.9 GHz band to deploy 700 MHz public safety broadband network Authorizing: Urged fixed links and database registration or frequency coordination

28. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201228 Four

29. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201229 Number 4: Migratory Birds  2/19/08 - D.C. Circuit Court requires FCC to: Address Bird Conservancy request for EIS on towers Provide notice of pending tower applications (not just approvals)  4/14/09 - Bird Conservancy files Petition for RM Require additional environmental protections  4/30/09 - FCC requests comment (May 29) and replies (June 15)

30. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201230 Number 4: Migratory Birds  March 25, 2011 - FCC PN seeks comment on draft rules and interim procedures Local notice prior to obtaining an ASR FCC publish notice of ASR requests on website for 30 days and receive comment EAs required for each proposed tower more than 450 ft for affect on migratory birds (on interim basis)

31. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201231 Number 4: Migratory Birds  March 2012 –Programmatic Environmental Assessment  Evaluated three options No change to ASR program Change to FAA lighting scheme –Steady-burning red lights bad Require EAs for towers –All new towers and most mods –All towers near eagle nests or certain bird habitats –All towers over 450 feet

32. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201232 Number 4: Migratory Birds  5 million bird deaths from towers annually  But only.2 percent of bird deaths from towers  Found “No Significant Impact” at national level under all three options  But some significant local impacts may not be mitigated by first two options and option 3c  Rulemaking Proceeding Expected

33. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201233 Number 4: Migratory Birds  Interim Rules Effective June 18  New Procedure: Towers taller than 450 feet –Environmental Assessment Required Towers Requiring ASR, under 450 feet –Secure FAA Determination of No Hazard and Marking/Lighting Recommendation –Publish Notice in Local Newspaper –National Notice via FCC website for 30 days –After 40 days, receive ASR Number

34. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201234 Three

35. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201235 Number 3: Signal Boosters  April 2011 NPRM proposed rules to allow use of fixed and mobile signal boosters for use in conjunction with commercial cellular systems. Proposed allowing customers and building operators to install and operate boosters to extend wireless coverage.

36. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201236 Number 3: Signal Boosters  Verizon and T-Mobile Permit boosters if –Designed and certified to meet one of two technical safe harbors –Registered with the carrier prior to operation  AT&T proposal Permit boosters that are licensed and approved by carriers prior to operation –Similar to blanket licensing for mobile handsets

37. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201237 Two

38. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201238 Number 2: TV White Spaces  Channels 2-51 (except 3, 4, 37) Space between authorized TV stations Part 15 Unlicensed  Geolocation/database access  September 23, 2010 Order Removes sensing requirement

39. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201239 Number 2: TV White Spaces  November 2010 – Database managers selected: Comsearch, Frequency Finder Inc., Google Inc., KB Enterprises LLC and LS Telcom, Key Bridge Global LLC, Neustar Inc., Spectrum Bridge Inc., Telcordia Technologies, and WSdb LLC  Microsoft added 2011

40. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201240 Number 2: TV White Spaces  December 2011 – FCC begins to certify database administrators Spectrum Bridge, Telcordia certified Limited Operations authorized –Wilmington, NC  Apr 5, 2012 – FCC releases Order raising fixed station HAAT to 250 meters Made minor changes to emission mask

41. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201241 Number 2: TV White Spaces  Impacted by Incentive Auctions/Repacking Incentive Auctions would permit broadcasters to turn in portions of spectrum and share in proceeds of auction  FCC considering incentive auction rules Interest Groups advocating for the preservation of white spaces

42. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201242 One

43. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201243 Number 1: FCC Enforcement  Operation of an Expired License  Corporate Mergers and Acquisitions

44. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201244 Number 1: FCC Enforcement  Licensees must file renewal applications prior to the expiration of the FCC radio license.  The Wireless Bureau may refer any late filings to the Enforcement Bureau for investigation and potential penalties.

45. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201245 Number 1: FCC Enforcement  A utility in Minnesota held four FCC radio licenses and operated for 26 months after they expired.  Result: The Bureau issued a $20,800 Notice of Apparent Liability. Utility eventually paid $16,000 to settle the case.

46. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201246 Number 1: FCC Enforcement The Enforcement Bureau recently expressed increased concern regarding mergers and acquisitions of entities holding FCC authorizations. Section 310(d) of the Communications Act prohibits an FCC station license from being assigned or transferred as part of a corporate merger or acquisition without the prior consent of the FCC.

47. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201247 Number 1: FCC Enforcement Licensee held 168 Multiple Address Service and two Microwave Industrial/Business Pool licenses. Licensee’s assets were acquired by a third party. The acquisition resulted in a transfer of control of licensee for which the licensee did not secure the FCC’s prior consent.

48. │ www.khlaw.com │ K ELLER AND H ECKMAN LLP Copyright © 201248 Number 1: FCC Enforcement  The licensee entered into a consent decree with the Commission, agreeing to “voluntarily contribute” $35,000 to the U.S. Treasury and follow a compliance plan for apparent violations of Section 310(d) of the Communications Act

49. www.khlaw.com Washington, DC ● Brussels ● San Francisco ● Shanghai Wesley K Wright Attorney Keller and Heckman LLP 1001 G Street NW Suite 500 West Washington, DC 20001 +1 202.434.4296 wright@khlaw.com Thank you!!