Do We Still Have a 470-512 MHz Home?

1. Do We Still Have a 470-512 MHz Home? 2:00 p.m. – Wednesday, April 25, 2012 Enterprise Wireless Alliance Emmitsburg, Maryland Mclean, Virginia

2. Presenters Mark E. Crosby President/CEO Enterprise Wireless Alliance Elizabeth R. Sachs, Esq. EWA Regulatory Counsel Lucas, Nace, Gutierrez & Sachs, LLP

3. Middle Class Tax relief and Job Creation Act of 2012“The Spectrum Reform Bill” • 700 MHz commercial “D Block” reallocated for public safety • First Responder Network Authority (FirstNet) established within NTIA • $7B+ from broadcast spectrum auction provided FirstNet for nationwide system deployment and operation • FCC provided “incentive auction” authority • FCC directed to utilize reverse auctions

4. Middle Class Tax relief and Job Creation Act of 2012“The Spectrum Reform Bill” • Nine years after enactment (February 22, 2021) FCC shall reallocate the 470-512 MHz spectrum (T-Band) “currently used by public safety eligibles and auction this spectrum” • Auction proceeds will be available for NTIA to provide grants to cover public safety relocation costs Critical Observations • No mention of Industrial/Business (“I/B”) usage – but assume I/B systems will need to relocate as well • No mention of alternative comparable spectrum to accommodate either public safety or I/B relocated systems

5. FCC and Industry Responses • FCC appoints Incentive Auction Task Force - Ruth Milkman/Gary Epstein serve as Co-Chairpersons - Economic and auction experts retained to assist effort - 120 MHz of broadcast spectrum targeted for broadband • FCC establishes Technical Advisory Board for first responder interoperability • FCC issues PN seeking comment on transfer of PS broadband license from PSST to FirstNet

6. FCC and Industry Responses • APCO requests FCC to relieve PS T-Band licensees from obligation to narrowband • Chicago requests FCC for “Advisory Opinion” on which band(s) it should consider as available for relocation • LMCC appoints T-Band Working Group to assist FCC in its deliberations

7. FCC and Industry Responses • FCC announces that it will soon issue a blanket narrowbanding exemption for both PS and I/B T-Band systems • FCC announces that it will soon “freeze” both PS and I/B applications for new systems and applications from incumbent licensees seeking either additional spectrum or geographic coverage Critical Observations • FCC is responding very quickly to these legislative mandates • PS and I/B licensees treated the same (initially) • Responses are best made following a careful review of the actual written FCC notices

8. What’s at Stake • For I/B and PMRS carrier incumbents, there are … - 281 unique licensees operating - 910 unique call signs (systems) utilizing - 7,556 unique frequencies at - 431 unique sites • Eleven (not thirteen!) markets, specifically - Boston - Chicago - Dallas/Ft. Worth - Houston - Los Angeles - Miami - New York - Philadelphia - Pittsburgh - San Francisco - Balt/Washington

9. Near Term Issues • Narrowbanding Exemption - Those who already invested in narrowband may be able to recoup that cost (relocation reimbursement) - Current or planned initiatives perhaps should continue in order to gain spectrum efficiency and new device features - Need to interpret impact of forthcoming licensing freeze policy language • Licensing Freeze - Not a lot of spectrum or geographic capacity remaining - More capacity through digital transition – considered more spectrum? - Pending applications at FCC?

10. Long Term Alternatives • Would a future Congress change the law regarding repurposing the 470-512 MHz band? - Unlikely if "broadband at all costs” fervor continues unabated - 470-512 MHz spectrum and affected markets are considered beach front property - Auction revenues are always welcome - PS would rather gain 10 MHz than retain T-Band • Critical questions for I/B licensees - Is there comparable exclusive spectrum where I/B systems may migrate? (Unused PS spectrum?) - What is the source(s) of I/B system relocation funding? - Will the FCC pay attention to I/B licensee interests?

11. Long Term AlternativesAccommodating I/B Requirements • Overlay auctions - Mandated relocation by auction winner to comparable spectrum with full reimbursement or at set compensation levels - Voluntary relocation by auction winner subject to negotiations - Auction winner protects incumbent systems • Voluntary participation in T-Band auctions - Incentive auction - Reverse auction

12. Final Observations • The FCC admits that interpreting the provisions of the legislation is a challenging exercise • Rules and policies will be subject to public comments through regulatory proceedings – including how I/B incumbents are treated • In the past, the wireless capacity and financial needs of incumbents in repurposed bands have been reasonably accommodated • A percentage of I/B incumbents are pleased with this nine to eleven year exit strategy • EWA will be an advocate on behalf of I/B and commercial licensees throughout the process – comments and recommendations are always welcome!

13. Contacting EWA www.enterprisewireless.org 800.482.8282 703.797.5114 – Mark Crosby mark.crosby@enterprisewireless.org Membership membership@enterprisewireless.org Bi-Weekly Regulatory Calls, Insider E-newsletter, Special Bulletins

14. Thank you! Questions?