Sale of Upper 700 MHz A Block Spectrum

1. Sale of Upper 700 MHz A Block Spectrum A Common Spectrum Solution for Utilities and Critical Infrastructure Enterprises John Vislosky, Access Spectrum, LLC September 2014

2. Update on the Sale of the Upper A Block 700 MHz Licensed Spectrum • Raise Understanding of: • the 700 MHz Spectrum’s Capabilities • the Spectrum Band’s Attributes • Licensing Rules • Applications • Coalition Document • Resources Available • Next Steps for Purchase • Contact Information PURPOSE

3. UPPER 700 MHz A BLOCK • The A Block is licensed in 52 major Economic Areas (MEAs) and covers al 50 States and US Territories – all of which is available for acquisition

5. The Upper 700 MHz A Block is a 2x1 MHz paired (2 MHz total) block of spectrum licensed by the FCC in 52 geographic areas called Major Economic Areas (MEAs) • Upper 700 MHz licenses covering the entire United States and Gulf of Mexico are controlled by Access Spectrum with 28 licenses & 2 other investment firms(23 licenses & 1 license respectively) • Altogether the 2x1 MHz paired Upper 700 MHz A Licenses cover 313 million POPs • The Price of the Spectrum is .75c/MHz POP • Recent sale of 700 MHZ Spectrum by Verizon to T-Mobile received $1.89/MHz POP UPPER 700 MHz A BLOCK

6. A Block is 2x1 paired MHz block at 757-758 MHz and 787-788 MHz • The 700 MHz band is often referred to as the spectrum equivalent of “beach-front property” due to its superior propagation characteristics • These propagation characteristics enable broader wireless coverage at lower cost than in other spectrum bands • In addition, the 700 MHz spectrum – formerly used for television analog broadcast signals – is ideal for achieving in-building signal penetration UPPER 700 MHz A BLOCK

7. Favorable FCC Rules and Spectrum Attributes: • No Build out requirements • Rules call for Substantial Use • Ease of renewal • Is unencumbered/clear and licensed spectrum; • Offers superior propagation characteristics (building penetration and rural coverage) relative to other bands; • Is governed by flexible service and technical rules which permit a wide range of technologies and applications (Voice, SCADA, Telemetry, and other Data applications); • Base Station transmissions < 1000 watts ERP on the Higher Frequency and < 30 watts ERP on the Lower Frequency, and the Antenna < 305 meters HAAT. UPPER 700 MHz A BLOCK

8. LCC International & AT4 Wireless completed a full field demonstration in Herndon, Virginia using off-the-shelf TDD (WiMax 802.16) equipment • Demonstrated: • ― Compliance with FCC rules • ― No interference with adjacent operations • ― Ability to pass data at ~700 kbps using 500 kHz TDD channel • • We Estimate that with customized equipment each 1 MHz channel would pass data at > 1.5 Mbps • Great River Energy (GRE) has been a Leased Customer since 2005 on the ASL Spectrum with a Point to Multipoint Solution. UPPER 700 MHz A BLOCK

9. Operations • Data Analytics & Business Intelligence • Cyber & Physical Security • Network, Device & Asset Management • Workforce Management • Contractor Management • Installation and Maintenance Management  • Internet of Things Additional Revenue Options- CII owns the Gateway to the Home • Time Stamp • GPS • Control Channel to access Regional TV White Space • Power Delivery and Quality • Distribution and Substation Automation • Fault and Protection Management • System Management • Forecasting and Demand Response • Advanced Metering Infrastructure • Emergency Push to Talk Communications  • Common Spectrum Platform for Acquisitions • Customer Engagement • Energy Management • Unmanned Aircraft Systems for Power Lines and Remote Sub Stations APPLICATIONS & SOLUTIONS

10. FAA and FCC working on standard and Whitepaper for Control and operation of UAVs. Whitepaper due Q4 2014. Released after review in January 2015 • Issue is Spectrum and Control • No set frequencies to control spectrum • Loss of Contact Return to Station or Immediate Land • Three Entities are “Fast Tracked” for Application • Hollywood • Agriculture • Critical infrastructure Industry (Utilities, Oil and Gas) • Upper 700 MHz considered for use as: • Primary Control Channel • Secondary Emergency Control Channel Unmanned AIrCraft Systems

11. 5 Test Centers provide feedback and also commercialize DOD Applications for industry (Texas, Nevada, North Dakota, Alaska and Massachusetts) • Nevada and Texas are looking to test exclusively on Upper 700 MHz A Block Spectrum • Successful Test may mean Upper 700 MHz A Block wil be the standard frequency for either Primary or Emergency Backup • Utility/CII Applications: • Fly the Lines (Distribution, Pipelines, Rural Sites) • Substation and Overall Security • Remote Sensing • BOTTOM LINE As license holders Utilities would have the spectrum to fly their own UAVs and/or serve as the Infrastructure Provider for Nationwide UAVs Unmanned Aircraft Systems

12. Definition • Coalition answers the conundrum of availability of equipment in the Upper 700 MHz Band • CII concerns were that if they purchased the 700 MHz Spectrum as a “common solution” that there would not be any equipment available in the 700 MHZ Spectrum. • Conversely, the Equipment/Infrastructure companies, asked if the CII would support and purchase equipment if they made equipment in that frequency range. • In an effort to bridge this communication gap, The 700 MHz Licensees created The Coalition Document which promotes Economies of Scale & Interoperability . • The Coalition Document is a non-financial, non-binding documentthat supports the concept that the Upper A Block 700 MHz Spectrum is a viable solution for all parties concerned. In addition to approaching the CII’s for signature, we seek the endorsement of Equipment Manufacturers and Engineering Firms. COALITION DocuMent We encourage everyone to sign the Coalition Document

13. Signed Coalition Document Pending • Full Spectrum: FullMAX 700 MHz TDD • 4RF: APRISA • T3 Wireless • Carlson Wireless • IBM (endorsed) • Convergence Technologies, Inc. • CISCO • Motorola Solutions • Silver Springs Networks • You identify the vendor and we can jointly speak with them KEY VendorsAgreed to Support Upper 700 MHz

14. UTC and UTC’s 700 MHz Whitepaper • Studies of Estimated Infrastructure Costs for Major Economic Areas (MEA); Major Service Areas (MSA) and Beacon Transmission; • Assistance with Business Use Case Development for internal Budgeting; • ASL’s Regulatory Attorney is available to provide clarity on license transfer, procedure and verification of rules governing the spectrum, etc. • In-person presentations to internal decision making group • Other assistance required- just ask Resources Available

15. The Licensees are in the process of “Parceling” their Upper 700 MHz Licenses now to Individual CII and Utilities for Purchase Contact Access Spectrum’s, John Vislosky, or Select Spectrum’s, Bob Finch to set up an immediate meeting and/or for information and Economic Area Map (EA) to determine the Licenses you wish to purchase We will confirm your Licensed Geographies and prepare a simple Term Sheet to review terms and investment If a proof of concept pilot is required we suggest it runs concurrently with finalizing the purchase Once the Term Sheet is fully executed and payment made Access Spectrum and/or Beach Point Capital will coordinate with your company and the FCC to transfer the licenses. Next Steps for Purchase

17. John Vislosky, Access Spectrum, LLC Email: John.Vislosky@AccessSpectrum.comOffice: (301) 941-1110 Cell: (240)-507-8816 Robert Finch, Select Spectrum/Beach Point Capital Email: Rfinch@SelectSpectrum.com Office: (703) 635-2686 Cell: (703) 906-0218 Brett Kilbourne, UTC VP, Gov't and Industry Affairs & Deputy GC Email: brett.kilbourne@utc.org (Office): (202) 872-0030 Contact Information