1. Accelerating a broadband future: Designing spectrum awards to meet mobile broadband requirements Peter Dunn – Cullen International © Cullen International SA 2012

2. shape market via: - award - licence One-off opportunity to shape market demand Clarify policy priorities: coverage, universality quality of service competition

3. © Cullen International SA 2012 what the market can take how mobile BB is used market understanding spectrum goes to existing operators market consolidation no new entry innovative conditions applied rural first coverage 12x more for 800 MHz scarcity, band properties low frequencies high value Trends

4. © Cullen International SA 2012 in award or including existing holdings different by spectrum band and assignment different if existing or new operator spectrum caps ensure all operators are sustainable assumes very good market knowledge moving towards market design? minimum packages less regulatory involvement in market design risk of strengthening dominance risk of non-sustainable operators let market decide Competition

5. © Cullen International SA 2012 Coverage obligations: population targeted rural first data rate spectrum network sharing costs awards refarming

6. Coverage obligations in Germany © Cullen International SA 2012 GSMUMTS

7. Coverage obligations in Germany © Cullen International SA 2012 GSMUMTSLTE

8. THANK YOU! peter.dunn@cullen-international.com © Cullen International SA 2012

9. Awards of 800 MHz and 2.6 GHz Date800 MHz2.6 GHz paired 2.6 GHz unpaired Coverage obligations Germany5/2010€3,576m€252m€85m800 MHz only Sweden3/2011€195m€216m€18m800 MHz only Spain7/2011€1,305m€173m€16m800 MHz only Italy9/2011€2,962m€432m€74mboth bands Portugal11/2011€270m€36m€3m800 MHz only France12/2011€2,639m€936m -both bands Switzerland2/2012€810m in total for all bands800 MHz only The only new market entry has been for unpaired 2.6 GHz and for regional 2.6 GHz licences in Spain Innovative coverage obligations have focused on 800 MHz band and provision of broadband to rural areas © Cullen International SA 2012

10. 800 MHz 12x higher value than 2.6 GHz SE awarded 2.6 GHz in May 2008 Average differential between 800 MHz and 2.6 GHz is 12x (€0.67 to €0.05) © Cullen International SA 2012