1. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 1 Latin American Spectrum Conference 2012 Mexico City October 24-25, 2012 Session on The Possibilities of 700MHz October 25 th 15.00 – 17.30 Stephen A. Wilkus

2. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Sustaining the Revolution The potential of 700 MHz Spectrum Stephen A. Wilkus October 25, 2012

3. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 3 The Benefits of Wireless Broadband Social and Economic Benefits Currently, “there are over 6 billion mobile phone subscribers, 75% of the world’s population has access to a mobile phone, more than have access to a bank account, electricity or even clean water.” (World Bank 2012) ­ Developing countries are “more mobile” than developed, and are developing unique applications and services to empower local economies. ­ The world is increasingly “flat,” with the world’s information available to all. ­ Broadband growing faster in developing countries with over a 200% growth rate. A 2008 Deloitte & Touche study found that the mobile industry in 6 countries was responsible for 3.7% to 6.2% growth in GDP and 0.2% to 1.1% growth in employment A study by McKinsey & Company on Latin American countries stated that the combined GDP could increase by up to $70 billion, and add up to 1.7 million more jobs Enriching & Developing people with access to “Symmetrical information”

4. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 4 US Experience at 700 MHzearly 2009 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

5. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 5 US Experience at 700 MHzMid 2009 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

6. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 6 US Experience at 700 MHzearly 2010 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

7. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 7 US Experience at 700 MHzlate 2010 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

8. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 8 US Experience at 700 MHzearly 2011 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

9. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 9 US Experience at 700 MHzmid 2011 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

10. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 10 US Experience at 700 MHzmid 2011 Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

11. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 11 US Experience at 700 MHzcurrent Used with Permission; Jeff Engel, D. Roberson, of IIT with funds provided by the National Science Foundation LTE Movie available at: http:// www.youtube.com/watch?v=h-Ffq1kCvashttp:// www.youtube.com/watch?v=h-Ffq1kCvas

12. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 12 LTE Deployments now in the 700 MHz band NowEnd of 2012 Verizon371 cities400 cities AT&T75100 Sprint (not 700MHz) 24100 TOTALNearly 75% of US Population  One Tier 1 Operator reports that over 35% of the data traffic now goes over LTE in 700 MHz.  Over 75% of US population now has access to LTE service, overwhelmingly from the 700 MHz band.

13. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 13 Challenging interference issues near border Filter 1Filter 2 Filter 1Filter 2 Interference Substantial interference issues throughout the band requires careful coordination within 110km of US Mexican border. Particularly challenging for Public Safety (PS) with noise limited long-range systems on high towers. Only the worst cases of interference are highlighted.

14. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 14 LTE’s Carrier Aggregation Enabling Much More Flexible Use Of Spectrum  LTE-Advanced Rel-10 (first office applications in 2013) introduces Carrier Aggregation (CA).  CA of different size and numbers of carriers, inter-band and intra-band Component Carriers.  Downlink-only Carriers to be supported (such as Lower 700 MHz D&E blocks.)  This provides new opportunities for unleashing stranded bands such as AWS-3, WCS, and Lower-700 MHz A block, where uplinks have been problematic.  Methods are emerging for improving UL Spectral Efficiency, more so than DL SE.  But… there are CA combination restrictions, complications of radios and stresses on signaling channels. ABCDABCD Guard Band Downlink Uplink Traditional band plan AB CABBCD Guard Band Downlink Uplink With Carrier Aggregation C Another Band

15. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 15 Key TakeAways 9362 Enterprise Cell  Demand is outstripping spectrum supply  Need for DD  Creative use of Carrier Aggregation & Small cells require regulatory and community support  It’s not just spectrum any more.  Packing Broadcast TV unleashes spectrum for Mobile BB  Spectrum Considerations:  700 MHz APT band plan will provide good economies of scale  Learning curve suggests that doubling the cumulative quantity produced reduces costs by ~ 15%. 10X  50% FOR COMPONENT.  RF Front End Module costs less than about $3.  Border interference should be manageable at the low frequency end effectively. Without careful coordination, US Public Safety interference is more problematic. PS Terminals will cause interference to APT-700 terminals at high frequency end.  There is much more downlink traffic than uplink.  The benefits of mobile broadband are enormous, and fun!

16. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 16

17. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 17

18. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Incentive Auctions FCC released Incentive Auction NPRM from last Wednesday’s meeting: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf 1 st stage reverse auction: for full-power and Class A TV licensees and allows participants to ­(a) relinquish a 6 MHz license, ­(b) channel-share, or ­(c) move from a UHF to a VHF channel. Repacking broadcast licenses 2 nd stage forward auction of 5 MHz blocks without advance knowledge of which blocks. ­Separate up and down blocks clearing X downlink and Y uplink spectrum. Whitespace use in Channel 37, in the guard bands, and in two channels used by wireless microphones Expected Order in 2013 with auction in 2014.

19. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Incentive Auctions FCC released Incentive Auction NPRM from last Wednesday’s meeting: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf 1 st stage reverse auction: for full-power and Class A TV licensees and allows participants to ­(a) relinquish a 6 MHz license, ­(b) channel-share, or ­(c) move from a UHF to a VHF channel. Repacking broadcast licenses 2 nd stage forward auction of 5 MHz blocks without advance knowledge of which blocks. ­Separate up and down blocks clearing X downlink and Y uplink spectrum. Whitespace use in Channel 37, in the guard bands, and in two channels used by wireless microphones Expected Order in 2013 with auction in 2014.

20. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Incentive Auctions FCC released Incentive Auction NPRM from last Wednesday’s meeting: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-12-118A1.pdf 1 st stage reverse auction: for full-power and Class A TV licensees and allows participants to ­(a) relinquish a 6 MHz license, ­(b) channel-share, or ­(c) move from a UHF to a VHF channel. Repacking broadcast licenses 2 nd stage forward auction of 5 MHz blocks without advance knowledge of which blocks. ­Separate up and down blocks clearing X downlink and Y uplink spectrum. Whitespace use in Channel 37, in the guard bands, and in two channels used by wireless microphones Expected Order in 2013 with auction in 2014.