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“In the integrity and independence of the enlightened individual lies the hope of the nation” A.J Fletcher Founder Capitol Broadcasting Company CBC Proprietary.

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Presentation on theme: "“In the integrity and independence of the enlightened individual lies the hope of the nation” A.J Fletcher Founder Capitol Broadcasting Company CBC Proprietary."— Presentation transcript:

1 “In the integrity and independence of the enlightened individual lies the hope of the nation” A.J Fletcher Founder Capitol Broadcasting Company CBC Proprietary & Confidential

2 National Broadband Plan Spur Innovation More broadband access Faster speeds Connect rural America Create more competition Better prices CBC Proprietary & Confidential

3 “Spectrum Crisis” Numbers Cisco forecasts mobile video will account for 52.8% of all mobile data traffic in 2011. Mobile video will more than double every year between 2010 and 2015. Mobile video will account for 66% of all mobile data traffic by 2014. Cisco -- Visual Networking Index CBC Proprietary & Confidential

4 Current Broadband Plan 1)Reduces competition/expands power of “4 gatekeepers” 2)Creates an environment where the Government is picking winners and losers 3)Harms tens of millions of Americans who utilize OTA on one or more TV’s 4)Most Importantly – Short changes by billions spectrum value $$$ – Allows time for demand side to outgrow supply side – Creates a truly open and free market auction for 120 MHZ CBC Proprietary & Confidential The Economic Side

5 Not Good CBC Proprietary & Confidential Just four (4) companies control over 90% of all mobile connectivity in the United States. Chetan Sharma Consulting

6 Current Broadband Plan 1)Provides a short term solution to a long term problem 1)Does not fix the problem – it puts a band aid on it 2)Creates a 10 year revolving door spectrum crisis 3)Handcuffs our country in competition with other countries addressing the problem appropriately “Mobile data traffic is projected to increase 35X in the next few years, ten times faster than the rate of increase in spectrum coming online for mobile broadband” Chairman Julius Genachowski Federal Communications Commission NARUC (National Association of Regulatory Utilities Commissions) Annual Meeting Atlanta, GA November 15, 2010 CBC Proprietary & Confidential The Spectrum Side

7 Current Broadband Plan 2)Fails to identify and utilize fallow spectrum 3)Misses complementary aspects of broadcast and broadband for spectrum maximization 4)Does not contemplate international harmonization 5)It does not address mobile video as primary demand driver 6)Does not identify how local spectrum will remain local 7)Most Importantly – Does not leverage established broadcast infrastructure to help solve problem CBC Proprietary & Confidential The Spectrum Side (Continued)

8 Current Broadband Plan 1)Does not contemplate a flexible broadcast architecture for the future 2)Does not address double standard of “broadcast straightjacket” vs. wireless service providers 3)Fails to identify real world harm of “involuntary repacking” 4)Most Importantly: Does not address broadcast industry innovation CBC Proprietary & Confidential The Regulatory Side

9 Current Broadband Plan CBC Proprietary & Confidential The new Verizon logo clearly states the end game…

10 Broadcasting As Part of the “Spectrum Crisis” Solution CBC Proprietary & Confidential

11 Mobile Networks Are One-to-One

12 CBC Proprietary & Confidential 10Mbps per sector with 3 sectors per transmitter 30 Mbps total and 384 Kbps video bit rate NIST LTE Smart Grid 5Mhz Up and 5Mhz Down Configuration 4G Assumes no voice or other data usage on the network. 240 Users Per 4G Transmitter

13 CBC Proprietary & Confidential Raleigh-Durham Market – 2.78 Million People

14 CBC Proprietary & Confidential Everyone Can Connect

15 CBC Proprietary & Confidential Raleigh-Durham Market Ratio - 11,583 : 1

16 Don’t Take Our Word “We’re working with all of our infrastructure providers…to develop the technology to incorporate a broadcast capability. We think that will be a solution to this problem down the road…” Tony Melone, CTO, Verizon Wireless “We’re working with all of our infrastructure providers…to develop the technology to incorporate a broadcast capability. We think that will be a solution to this problem down the road…” Tony Melone, CTO, Verizon Wireless Open Mobile Summit – November 2010 CBC Proprietary & Confidential

17 A Better Broadband Plan CBC Proprietary & Confidential

18 The CBC Plan – Step 1 Timetable: Year 1 Launch Spectrum Inventory Analysis Launch Cross Industry Working Group –Identify immediate opportunities to offload wireless broadband bandwidth overload to broadcasters utilizing the current mDTV technology –Develop and implement broadcast and wireless broadband technology convergent evolution path Convergent Evolution: a process by which unrelated organisms independently acquire similar characteristics while evolving in separate ecosystems CBC Proprietary & Confidential

19 The CBC Plan – Step 2 Timetable: Years 2 - 4 Broadcast Technology Evolution –OFDM based system Eliminates adjacent channel interference problems! Enables 30Mbps-40Mbps throughput (vs. 19.4Mbps) Enables SFN layout for wireless broadband offload Fixed/Mobile integrated chipsets Built on software upgradable standards (LTE) Broadcast, Fixed, Mobile, VOD, Datacast CBC Proprietary & Confidential

20 Broadcast Evolution enables collaborative systems that shift content on the fly between broadcast and wireless broadband/unicast

21 The CBC Plan – Step 3 Timetable: Years 2 - 5 FCC Holds 380 MHZ of Spectrum Auction –Broadcast spectrum not included –5 year timeline for 330 MHZ met CBC Proprietary & Confidential

22 The CBC Plan – Step 4 Timetable: Years 5-10 Years Broadcast Technology Evolution Launched Broadcast Stations Repack FCC Holds 120MHZ Incentive Auction –Locally based spectrum licenses only –Higher value created with multiple bidders as you have created an opportunity for both local and national players CBC Proprietary & Confidential

23 The CBC Plan – Notes Public Interest Obligations Should Be Clear –Net neutrality on services we provide –Homeland Security and First Responders priority channels are established 5% Ancillary and Supplementary –Government earns revenue from all of the additional services = billions in revenue CBC Proprietary & Confidential

24 CBC Amended Broadband Plan Meets the 10 Year/500 MHZ goal Lowers capital outlay of wireless service providers = lower consumer prices Spurs competition by significantly lowering cost of entry Does not harm – actually HELPS – Over The Air viewers CBC Proprietary & Confidential

25 CBC Amended Broadband Plan Creates the path to solve the spectrum problem long term Drives maximum efficiency of broadcast spectrum band Creates a complimentary broadcast and broadband architecture vs. duplicate Addresses mobile video as primary spectrum crisis driver and utilizes the most established and efficient technology (broadcast) to solve problem CBC Proprietary & Confidential

26 CBC Amended Broadband Plan Identifies broadcasting as part of the future Creates new innovation opportunities for local broadcasters It helps broadcasting versus harming it Maximizes the value of the spectrum – Allows time for demand side to outgrow supply side – Creates a truly open and free market auction for 120 MHZ CBC Proprietary & Confidential

27 Discussion CBC Proprietary & Confidential


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