1. ACMA Spectrum Strategies 2 March 2006 Optus Networks Perspective Wireless Spectrum Strategies 2006 Peter FERRIS General Manager, Technology and Planning 2 March 2006

2. ACMA Spectrum Strategies 2 March 2006 2 Future Spectrum Needs Wireless Access –2G & 3G –WiFi & WiMAX (+ proprietary versions eg. iBurst) –Satellite Mobile Television –Multi-media Broadcast / Multicast Service (MBMS) –Digital Video Broadcast – Handheld (DVB-H) –Digital Audio Broadcasting (DAB) –Digital Multimedia Broadcast - Terrestrial (DMB-T) –Satellite Digital Multimedia Broadcasting Satellite (DMB-S) –Terrestrial Integrated Services Digital Broadcasting (ISDB-T) –QUALCOMM – MediaFLO –Satellite Digital Multimedia Broadcasting (S-DMB) –Terrestrial Digital Multimedia Broadcasting (T-DMB)

3. ACMA Spectrum Strategies 2 March 2006 3 The current Australian licensing regime Spectrum Licences are auctioned and allow operation of a band over a geographic area This is a requirement for Carriers because it is simple, gives certainty to spectrum availability and provides a solid foundation for network planning. This also ensures that the Quality of Service requirements that are expected by Customers can be met without issues arising from interference in the spectrum. The licences are tradeable. Apparatus Licences are issued on a per site basis These allow for point to multipoint services subject to a fairly complex and restrictive set of legislation. Apparatus licences are generally not suitable for a national network because it is difficult or impossible to establish ubiquitous coverage on a site by site basis. New licences must not interfere with existing licences. They are in general issued for no more than five years, and can usually be renewed beyond that however this is not guaranteed. Class Licence Users of class licensed spectrum have no protection from interference from other users other than changing frequency. It is expected that class licensed spectrum can be used successfully for broadband wireless in regional and rural areas in the medium term. In the longer term the viability of this type of license to provide sufficient quality of service to reliably deliver telephony service is in doubt. It is expected that more users of this equipment will come on line and there will be substantial interference especially in metropolitan areas.

4. ACMA Spectrum Strategies 2 March 2006 4 Spectrum map 50010001500200025003000350040004500500055006000 Spectrum Licence Apparatus Class CDMA2G BWA 3G 3G-TDDAustar DRCS WiFiBWA

5. ACMA Spectrum Strategies 2 March 2006 5 CDMA 800 GSM 900 Spectrum SydMelBrisPerthAdelElsewhere AAPT0020202010 MHz Hutchison20200000 Telstra202020202030 + Telstra 50MHz

6. ACMA Spectrum Strategies 2 March 2006 6 2G Spectrum ownership 17001750180018501900 OPTUSTelstraVodaOneTel Telstra OneTelTelstraVodaHutch Metro Regional OPTUSTelstraVodaOneTel TelstraVodaHutch No unallocated spectrum but One.Tel still has 2x15MHz

7. ACMA Spectrum Strategies 2 March 2006 7 3G Spectrum ownership 190019502000205021002150 OPTUS Telstra Voda Hutch Metro TDD Metro FDD No unallocated spectrum but 3G Investments (Qualcomm) still has 2x10MHz 3G Investments Regional FDD

8. ACMA Spectrum Strategies 2 March 2006 8 WBB 2.3GHz Spectrum Unwired 98 MHz Austar 98 MHz

9. ACMA Spectrum Strategies 2 March 2006 9 3.4 GHz Licences Unwired 65 MHz Telstra 35 MHz Unwired 35 MHz Telstra Apparatus Licence (100’s of these)

10. ACMA Spectrum Strategies 2 March 2006 10 WBB 3.5GHz Spectrum Brisbane has 17.5 MHz free here and 3.5 MHz free here Unwired 100MHz Telstra 35MHz Embargo 125MHz Guard band 125 MHz has been embargoed and is expected to be put up for auction (no date yet) Austar 65MHz

11. ACMA Spectrum Strategies 2 March 2006 11 802.11a at 5 GHz Between 5.15 and 5.35 GHz Indoor use only 200mW EIRP 5700 5800 560055005400530052005100 802.11a Class Licence Between 5.725 and 5.85 GHz 4W EIRP Class Licence DECT

12. ACMA Spectrum Strategies 2 March 2006 12 802.11b and 802.11g Licensing Licensed under Radiocommunications (Low Interference Potential Devices) Class Licence 2000 Fixed use only 4W EIRP 240024202440 2460 2480 Radiocommunications (Low Interference Potential Devices) Class Licence 2000 2500 MHz

13. ACMA Spectrum Strategies 2 March 2006 13 WiMAX Frequency Bands

14. ACMA Spectrum Strategies 2 March 2006 14 Regulatory Frameworks Public Park – Spectrum Commons –Class Licences –PAN & LAN deployments Site Based – Command & Control –Apparatus Licence –Primarily point to point deployments –Not suitable for national WAS deployment, short duration Area Based – Private Spectrum –Spectrum Licence (national / major area, long term) –Commercial WAS with QoS guarantee Private Park – Carriers doing the regulators job ? –Commercial service QoS problems, cannot support primary line voice –First in, best service – more competition, less service –Prime, Low density / Remote, Remote – all competing out of the Cities

15. ACMA Spectrum Strategies 2 March 2006 15 Optus Position Protection of Existing Investments –Commercial WAS with QoS guarantee to existing Customers –Extensive existing investment terms to provide commercial return Protection of International Satellite Links –Coordination of frequencies internationally –Adherence to ITU standards Commercial Viability of Equipment –Provision of Scale by adhering to ITU standards in Worldwide Markets for both network and customer equipment Customers Expectation of Roaming –Customers expect services (and CPE / Terminal Equipment) to operate nationally and internationally Commercial Viability of Future Spectrum Investments –Requirement to provide a commercial return for specific Customer services –Investment to provide known commercial return for practical market penetration