National Spectrum Managers Association Spectrum Management 2005

1. National Spectrum Managers AssociationSpectrum Management 2005 Diane Cornell Vice President, Regulatory Policy CTIA - The Wireless Association™ May 25, 2005

2. CTIA- The Wireless Association™ • CTIA is the international organization of the wireless communications industry for both wireless carriers and manufacturers. Membership in the association covers Commercial Mobile Radio Service (“CMRS”) providers and manufacturers, including cellular, broadband PCS, ESMR, as well as providers and manufacturers of wireless data services and products. • CTIA is the voice of the wireless industry - representing its members in a constant dialogue with policy makers in the Executive Branch, the Federal Communications Commission, and in Congress. CTIA’s industry committees provide leadership in the area of taxation, roaming, safety, regulations, fraud, and technology.

3. Commercial Mobile Radio Service- Over 182 Million Subscribers Today. Wireless Subscribers

4. Wireless Delivers Digital Service Over 167 Million digital subscribers at year-end 2004

5. Over 1.1 Trillion Minutes-of-Use in 2004

6. 1993 2 providers per market “A regulated duopoly” Avg. monthly bill - $ 61.49 16 million consumers 5% penetration Service on local/regional analog networks Data Rates of 9.6 kbps Limited internet access Limited number of mobile data capable devices 2004 5 providers per market for 88% of consumers Avg. monthly bill – $ 38.74 (in 1993 $$s). 182 million consumers 61% penetration 97.8% digital nationwide networks Data Rates up to 500 kbps Full Internet Access Over 167 million mobile data capable devices CMRS Track Record for Customer Service and Innovation Hard to Match

7. Many Major Developments in Spectrum in Last Year • 800 MHz Order • Resolved 800 MHz Rebanding • Resolved G Block • MDS/ITFS Order • Secondary Markets Order • Streamlining for license transfers/assignments • Private commons – subject of Further Notice

8. Many Major Developments in Spectrum in Last Year • Rural Wireless Order • Measures to increase deployment of wireless to rural areas • Increased base station power limits for CMRS in rural areas • H & J Block Advanced Wireless Proceedings • Additional 20 MHz of spectrum for AWS • Service rule proceeding pending looking at interference protection • Spectrum Relocation Legislation • Facilitates relocation of USG incumbents

9. Many Major Developments in Spectrum in Last Year • Auction 58 • Nextwave saga draws to a close – FINALLY! • Wireless Broadband Access Task Force Report • Promote voluntary frequency coordination and “best practices” • Expedite the DTV transition in 700 MHz spectrum • Explore asymmetrical pairing of spectrum • National, deregulatory framework

10. Many Major Developments in Spectrum in Last Year • Air-Ground Order • Proposes rules for auction of 4 MHz of Air-Ground spectrum (No date) • Three possible configurations – determined by the results of the auction • Air-Ground NPRM • Considers removal of prohibition on airborne use of 800 MHz handsets • FAA ban also would have to be removed • Necessary to address protection against interference to ground-based CMRS

11. Major Upcoming Spectrum Issues • AWS Reconsideration • Geographic Areas • Small business/rural entry • AWS/MDS interference • H&J Block Service Rules • Issue is how to protect adjacent incumbent licensees in the A-F PCS bands from harmful interference • 2002 Biennial Review (Streamlining) Proceeding • Modifications to PCS and AWS base station EIRP (power) limits to enable carriers to deploy wideband technologies more efficiently • 2 GHz MSS Licenses Returned • Do the two remaining licensees need the entire 40 MHz?

12. Major Upcoming Spectrum Issues • Spectrum Needs of Emergency Responders – Report to Congress • Public Safety needs ability to use spectrum more efficiently • Public Safety should use commercial services where possible • DTV Transition/700 MHz • CTIA supports a “hard date” for DTV transition • Draft legislation in House • Hearing on Thursday • Auction Authority Reauthorization • Relevant to budget process • Presents rare opportunity to consider spectrum issues legislatively

13. Major Pending Spectrum Issues Whose Time May Not Come • Interference Temperature • One of the most lop-sided records ever • Unlicensed Operations in TV Bands • Always hard to take on the broadcasters

14. Spectrum Management Reform • The FCC and NTIA should avoid creation of unlicensed spectrum “underlays,” which could create seriousinterference problems for licensed users • Supportive of unlicensed in separately allocated spectrum when demand is demonstrated • Any spectrum or network reliability planning relating to Homeland Security or public readiness needs to be performed at the Federal level to ensure an uniform, national response during terrorist attacks or natural disasters

15. Spectrum Management Reform – Ideas for the Future • Consider Better Ways to Clear Spectrum • Expand Relocation Fund approach • Spectrum clearinghouse • Two-sided auction • Create an “independent review” mechanism similar to the Base Realignment and Closure Commission (BRAC) • Better Define License Rights • Consider whether any Federal Spectrum should be reallocated or leased • Develop a “rolling” long-term spectrum planning process

16. Licensed Services Increasingly Offering Broadband Mobile Access • EV-DO already widely deployed in cities • Speeds comparable to DSL and Cable Modem • Rides on existing CMRS infrastructure • Other broadband, high-speed licensed technologies are on the way • Licensed Uses Should be a Higher Priority for Most New Spectrum Allocations than Unlicensed Uses • Licenses provide certainty of spectrum environment needed to stimulate investment and innovation

17. Questions? Diane Cornell Vice President, Regulatory Policy DCornell@CTIA.org 202-736-3216