800 MHz Rebanding: An Overview

1. 800 MHz Rebanding:An Overview David Furth Associate Bureau Chief Public Safety and Homeland Security Bureau March 21, 2007

2. Outline • How Did We Get Here? • The Interference Problem • The Rulemaking • The Transition • What’s Next?

3. History of the 800 MHz Band • Established in the 1970s for land mobile use (reallocated from UHF-TV) • Intended to relieve crowding of lower band land mobile frequencies • Channels allocated for mixture of services • Public Safety • Business Radio • Industrial/Land Transportation (e.g., utilities) • Specialized Mobile Radio (commercial service)

4. 800 MHz -- Old Band Plan 806 824 849 851 762 764 747 746 B A A C D B A B 700 MHz Public Safety (24 MHz) 800 MHz Band Upper 700 MHz Commercial (30 MHz) Cellular (50 MHz) ATG 776 777 894 896 792 794 = 700 MHz Guard Band 806 809.75 816 821 824 Channels 1-120 SMR/General Category NPSPAC (Public Safety) SMR, B/ILT, Public Safety Interleaved ESMR 869 854.75 861 866 851 Interleaved Spectrum -12.5 MHz 250 Channels 80 SMR Channels (Licensed by EA, Some Incumbent Operators Remain) 70 Public Safety Channels 50 Business Channels 50 Industrial/Land Transportation Channels SMR/General Category -7.5 MHz 150 Channels Licensed by EA Blocks of 25 channels (SMR) Some Incumbent Operators Remain (includes Business, I/LT, and Public Safety) ESMR/Upper 200 – 10 MHz 200 Channels Licensed by EA A few non-EA incumbents remain; most were relocated or acquired in late 1990s. NPSPAC - 6 MHz 225 Channels @ 12.5 kHz spacing 5 Channels @ 25 kHz spacing 5 Mutual Aid Channels

5. Outline • How Did We Get Here? • The Interference Problem • The Rulemaking • The Transition • What’s Next?

6. Interference Problem • Mid-1990s – Nextel starts to deploy cellular-architecture “ESMR” in the 800 MHz band • Public safety also expands into 800 MHz as lower bands grow congested • Late 1990s -- 800 MHz public safety systems encounter increasing interference and “dead zones” • Problem traced to Nextel as well as cellular carriers operating in adjacent spectrum

7. Interference Problem • Caused by incompatible system architecture on adjacent channels • Public safety systems use “high-site” architecture -- small number of base stations with high antennas to maximize signal propagation • Commercial systems use “low-site” cellular architecture -- numerous cells with low antennas to allow frequency reuse • Interference occurs when a mobile user on a high-site system moves far from its own base station but near a low-site commercial base station • Interleaved band plan exacerbates problem

8. Near/Far Problem “Near/far” problem – First responder is near the CMRS cell site and far from its own base station Public Safety BaseStation CMRSCellSite Strong signal from cell site 10 MILES Weak signal from public safety base station 2500 FEET Result: Signal from cell site overloads public safety handset

9. Public Safety Dead Spots + PUBLICSAFETYSTATION + Dead spots near CMRS cell sites – first responders cannot hear public safety communications + +

10. Outline • How Did We Get Here? • The Interference Problem • The Rulemaking • The Transition • What’s Next?

11. Early Proposals • Best Practices Guide (2000) -- voluntary measures to reduce interference • Nextel White Paper (2001) – proposes rebanding as a solution • 800 MHz NPRM (2002) – seeks comment on rebanding and non-rebanding alternatives • “Consensus Proposal” (2002) – Revised rebanding plan proposed by coalition of 800 MHz stakeholders, including Nextel and several public safety organizations

12. 800 MHz Report and Order • Adopted in July 2004 • Commission adopts a two-pronged solution to the interference problem • New rules for protection of public safety systems from interference by commercial systems • Rebanding to separate public safety and other high-site systems from cellular systems. • Commission’s rebanding plan incorporates some elements of the Consensus Proposal but also has new and additional elements

13. 800 MHz -- Old Band Plan 806 824 849 851 762 764 747 746 B A A C D B A B 700 MHz Public Safety (24 MHz) 800 MHz Band Upper 700 MHz Commercial (30 MHz) Cellular (50 MHz) ATG 776 777 894 896 792 794 = 700 MHz Guard Band 806 809.75 816 821 824 Channels 1-120 SMR/General Category NPSPAC (Public Safety) SMR, B/ILT, Public Safety Interleaved ESMR 869 854.75 861 866 851 Interleaved Spectrum -12.5 MHz 250 Channels 80 SMR Channels (Licensed by EA, Some Incumbent Operators Remain) 70 Public Safety Channels 50 Business Channels 50 Industrial/Land Transportation Channels SMR/General Category -7.5 MHz 150 Channels Licensed by EA Blocks of 25 channels (SMR) Some Incumbent Operators Remain (includes Business, I/LT, and Public Safety) ESMR/Upper 200 – 10 MHz 200 Channels Licensed by EA A few non-EA incumbents remain; most were relocated or acquired in late 1990s. NPSPAC - 6 MHz 225 Channels @ 12.5 kHz spacing 5 Channels @ 25 kHz spacing 5 Mutual Aid Channels

14. 800 MHz – New Band Plan 806 824 849 851 762 764 747 746 B A B A C D B A 800 MHz Band 700 MHz Public Safety Upper 700 MHz Commercial ATG Cellular 776 777 894 896 792 794 = 700 MHz Guard Band 824 806 809 815 816 817 866 NPSPAC (Public Safety) 866 869 Public Safety B/ILT Non-Cellular SMR 854 Expansion Band ESMR Guard Band 862 851 854 860 861 862 869 Nextel and other ESMRs occupy upper band segment, adjacent to Cellular band Public safety and other high-site systems occupy lower band segment, adjacent to 700 MHz public safety Guard Band and Expansion Band serve as buffers

15. Post-Rebanding – More Public Safety Spectrum NPSPAC (Public Safety) SMR, B/ILT, Public Safety Interleaved ESMR Expansion Band Guard Band Interleaved spectrum vacated by Nextel is available exclusively to public safety for 3 years After 3 years, vacated spectrum is also opened to Critical Infrastructure for an additional 2 years Other interleaved spectrum available on pool channel basis

16. 800 MHz Report and Order • Awards 10 MHz of spectrum in the 1.9 GHz band to Nextel • Spectrum is compensation for Nextel paying relocation costs and relinquishing a portion of its 800 MHz spectrum to benefit public safety. • Nextel must clear Broadcast Auxiliary Service (BAS) licensees from the 1.9 GHz band • Requires Nextel to make a “windfall” payment to the U.S. Treasury if value of the 1.9 GHz spectrum (calculated at $4.8 billion) is greater than: • Relocation costs paid by Nextel, plus • Value of Nextel’s relinquished 800 MHz spectrum

17. 800 MHz Report and Order • Requires Nextel to pay all relocation costs incurred by public safety and other 800 MHz incumbents • Costs must be reasonable, but no ceiling on total amount • Relocating licensees must receive “comparable facilities” • Provides for a 36-month transition to the new band plan • Provides for creation of the 800 MHz Transition Administrator (TA) to administer the transition and audit expenditures

18. Subsequent Orders • 800 MHz Supplemental Order (adopted December 2004) • Modified the 18-month benchmark requiring Nextel to relocate Channel 1-120 licensees • Increased the credit to Nextel for relinquishing 800 MHz spectrum • 800 MHz Reconsideration Order (adopted October 2005) • Modified eligibility rules for relocating to the ESMR band • Affirmed Commission’s authority to award the 1.9 GHz spectrum to Nextel

19. Preparation for Transition • Sept-Oct 2004 -- Transition Administrator selected • January 2005 -- TA develops region-by-region rebanding schedule • February 2005 -- Nextel accepts 800 MHz R&O conditions (Sprint affirms post-merger) • March 2005 – WTB approves schedule • June 2005 – Transition begins

20. Outline • How Did We Get Here? • The Interference Problem • The Rulemaking • The Transition • What’s Next?

21. Transition Process • The 800 MHz R&O established a 36-month transition process • The 36-month clock started on June 27, 2005, and ends on June 26, 2008 • Transition is divided into two stages • Stage 1 – Relocation of Channels 1-120 • Stage 2 – Relocation of NPSPAC • Transition is divided into four geographic waves

22. Rebanding – Stage 1 NPSPAC (Public Safety) Channels 1-120 -- SMR/General Category SMR, B/ILT, Public Safety Interleaved ESMR Expansion Band Guard Band Channel 1-120 Non-ESMR systems move to the Interleaved Band (Nextel vacates interleaved channels) Channel 1-120 ESMR Systems (non-Nextel) move to the ESMR Band Expansion and Guard Bands cleared Nextel can remain in the Non-ESMR spectrum until Phase II

23. Rebanding – Stage 2 NPSPAC (Public Safety) Channels 1-120 SMR/General Category SMR, B/ILT, Public Safety Interleaved ESMR Expansion Band Guard Band Nextel vacates Channels 1-120 NPSPAC licensees move down 15 megahertz to new NPSPAC Band Nextel moves into old NPSPAC Band Nextel vacates remaining channels in Interleaved Band

24. Transition Waves 1-4

25. Negotiations and Mediation • Nextel and each licensee must negotiate a Frequency Relocation Agreement (FRA) • Time period for negotiations • 3-month voluntary negotiation period • 3-month mandatory negotiation period • Mediation • If negotiations fail, Nextel and the licensee enter into a 30 working-day mediation period with a TA-designated mediator • Mediation can be extended under some circumstances • Referral to PSHSB • If the parties fail to reach a mediated agreement, the TA refers the case to PSHSB, which has delegated authority under the 800 MHz R&O to rule on disputed issues de novo

26. Negotiation Periods

27. Stage 1 (Channels 1-120) Relocation Progress • Substantial progress has been made in Waves 1-3 negotiations and mediations • Physical relocation of Channel 1-120 incumbents is now under way • Small number of cases remain open • Some licensees with both Channel 1-120 and NPSPAC systems want to relocate all in Stage 2

28. Stage 2 (NPSPAC) Relocation Progress • More complex and time-consuming than Stage 1 • NPSPAC has more large, complex public safety systems, more interoperability relationships among licensees • Significant time needed for relocation planning by NPSPAC licensees • Large number of cases in extended mediation

29. Wave 4 Border Issues

30. Wave 4 Border Issues • Rebanding in Wave 4 border regions must conform to cross-border spectrum agreements with Canada and Mexico • Existing bilateral agreements limit U.S. access to the 800 MHz band in border areas • Modifications to agreements are needed for Wave 4 band plan to be consistent with rest of U.S. • Commission staff is discussing possible changes to existing agreements with Canadian and Mexican regulators • Working in coordination with State Department • Bureau has extended Wave 4 timeline to allow time for international issues to be resolved

31. PSHSB Role in Rebanding • Rebanding implementation is a major priority for PSHSB • Bureau has delegated authority to rule on disputed issues de novo • Has issued five orders in individual cases to date • Has issued orders and PNs on issues affecting multiple cases (e.g., ability of public safety licensees to exchange information regarding negotiations with Nextel) • Bureau works closely with all major stakeholders to track progress and resolve issues informally

32. Outline • How Did We Get Here? • The Interference Problem • The Rulemaking • The Transition • What’s Next?

33. What’s Next • Pending Reconsideration Petitions • Stage 2 Scheduling Issues • Additional Mediation Cases • Negotiations with Canada and Mexico • Nextel Network Cost Issues • Post-Rebanding Licensing Issues