Spectrum Auctions and Opportunities National Spectrum Managers Association

Spectrum Auctions and Opportunities National Spectrum Managers Association May 23, 2007

Spectrum Policy Overview • • • Auction Results: AWS I Auctions Ahead: 700 MHz; AWS II Other Spectrum Opportunities Unlicensed Options Government Initiatives and Access 2

AWS-1 Auction • Began on August 9, 2006; ended September 18, 2006 • 90 MHz Nationwide: 1710 -1755/2110 -2155 MHz • 10 MHz and 20 MHz licenses – various license areas – License Term: 15 years – No mid-term construction requirement – “Substantial Service” must by provided by end of license term • Spectrum in many areas must be cleared before use • Simultaneous, multiple-round auction design (typical of past FCC auctions) • Transparent bidding • 104 Bidders won 1087 licenses, generating $13. 7 Billion in revenues 3

AWS-1 Band Plan BLOCK Block A: 20 MHz Block B: 20 MHz Block C: 10 MHz Block D: 10 MHz Block E: 10 MHz Block F: 20 MHz FREQUENCIES (MHz) SVC. AREA # of LICENSES 1710 -1720/2110 -2120 1720 -1730/2120 -2130 1730 -1735/2130 -2135 1735 -1740/2135 -2140 1740 -1745/2140 -2145 1745 -1755/2145 -2155 MSA/RSA EA EA REAG TOTAL BASE MOBILE 1710 1720 1730 734 licenses 176 licenses 12 licenses 1122 licenses 1735 1740 1745 1755 A B C D E F CMA EA EA REAG . . . 2110 2120 2135 2140 2145 2155 A B C D E F CMA EA EA REAG 4

Top 10 AWS-1 Auction Bidders • T-Mobile – $4, 182, 312, 000 • Cellco Partnership d/b/a Verizon Wireless – $2, 808, 599, 000 • Spectrum. Co LLC – $2, 377, 609, 000 • Metro. PCS AWS, LLC – $1, 391, 410, 000 • Cingular AWS, LLC – $1, 334, 610, 000 • Cricket Licensee (Reauction), Inc. – $710, 214, 000 • Denali Spectrum License, LLC – $365, 445, 000 • Barat Wireless, LP – $169, 520, 000 • AWS Wireless Inc – $115, 503, 000 • Atlantic Wireless, LP – $100, 392, 000 5

Auctions Ahead: 700 MHz • 108 MHz (698 -806 MHz) after Feb. 2009 DTV transition – 24 MHz to public safety – 24 MHz already licensed to commercial interests – 60 MHz to be auctioned no later than Jan. 2008 • Current Band Plan: • Much is in Play 6

April 27 Order & FNPRM • Order – Mixture of License Areas (REA, CMA) – Various Auction and Technical Issues – Guard Band Flexibility • FNPRM – Various Band Plans – Aggressive Geographic Build Out Requirements – Incumbent Eligibility Restrictions – Public Safety Spectrum Plan – Frontline – Open Access 7

Auctions Ahead: 700 MHz • Now Five NPRMs in Play – Commercial – license areas, spectrum block, build out rules – Guard Band – reallocation, eliminate service and technical restrictions – Public Safety #1 – convert wideband channels to broadband – Public Safety #2 – national interoperable, broadband network on 12 MHz in current public safety spectrum – April 27 FNPRM • Frontline – Auction a 10 MHz nationwide license and require: (1) build out of public safety broadband infrastructure; (2) open access, wholesale business plan on commercial spectrum • Cyren Call – Reallocate 30 MHz of commercial spectrum to public safety • Next Steps – Final order – likely June/July – Auction – by statute, auction no later than January 2008 and revenues to Treasury by June 2009 8

Mixture of License Areas 9

Other Auction Opportunities: AWS II • 40 MHz in total; auction timing likely no earlier than 2009 • H block (1915 -1920/1995 -2000 MHz) and J block (2020 -2025/2175 -2180 MHz) – Service rules pending (NPRM 2004) • 2155 -2175 MHz – To date, AWS allocation only, no service rules NPRM issued yet • M 2 Z proposal for 2155 -2175 MHz – Exclusive assignment in exchange for free broadband – Petitions to Deny and competing applications filed 10

Other Upcoming Auctions for Existing Services • 220 MHz – 94 licenses total – 93 EA licenses (including partial markets) – 100 k. Hz – 1 EAG license – 150 k. Hz • 218 -219 (formerly the IVDS service) – no auction details established at this time 11

Secondary Market Opportunities: Existing Bands in Flux • WCS – 2305 -2320/2345 -2360 MHz (4 license blocks, 52 MEAs and 12 REAGs) – AT&T, Comcast, Sprint, Nextwave, Horizon Wi-Com • BRS/EBS – 2496 -2690 MHz (multiple licensees) – Sprint, Clearwire, Nextwave • MSS/ATC options – L-Band, Big LEO Band, S-Band – MSV, Inmarsat, Globalstar, Iridium, ICO, Terrestar 12

Unlicensed Opportunities • “White Spaces” in TV Bands – Likely unlicensed – Likely fixed, at least to start (2009) • 3650 -3700 MHz – Non-exclusive licensing with novel interference protection rules – Encumbrances • New Options at 5 GHz – Additional 255 MHz – Complex Federal Government sharing 13

Federal Government Spectrum Reform • President’s "Spectrum Policy for the 21 st Century" initiative sets the following goals: – Economic growth; security; global leadership – Support for other vital U. S. needs in areas such as public safety, scientific research, Federal transportation infrastructure, and law enforcement. • Key component is to promote more efficient and beneficial use of spectrum without harmful interference to critical incumbent users • NTIA/FCC Spectrum Test Bed for new technology and sharing • Spectrum Management Advisory Committee 14

State & Local Government Innovation • Numerous test beds for blended or shared systems with commercial and state/local governments • Northrop Grumman Trial in New York • Bountiful opportunity for creative arrangements 15

Bryan Tramont btramont@wbklaw. com (202) 383 -3331 Wilkinson Barker Knauer, LLP 2300 N Street NW, Suite 700 Washington, DC 20037 www. wbklaw. com 16