AWS OverviewAWS Overview

October 9, 2007

Joe LawrenceVice President, Marketing

CDMA Development Group

2www.cdg.org

Advanced Wireless Services (AWS)Advanced Wireless Services (AWS)

AWS is the term coined by the FCC for new and innovative fixed and mobile terrestrial wireless applications using bandwidth sufficient for a wide

range of voice, data and broadband services over a variety of mobile and fixed networks.

AWS Auction 66 (AWS-1) represented the largest amount of spectrum suitable for deploying wireless broadband ever made available in a single

auction:

2 x 45 MHz of spectrum

Auction 66 nearly doubled the total revenue transferred to the U.S. Treasury from all previous auctions:

$13.9 billion for 1,087 licenses from 104 bidders in 2006

2www.cdg.org

Advanced Wireless Services (AWS)Advanced Wireless Services (AWS)

1710-1770 MHz (Mobile Tx) and 2110-2170 MHz (Base Tx)

AWS will include advanced 3G applicationsand next generation wireless services.

But, most of the AWS band needs to be vacated first.

1710 1755 2110 2155

AWS UL AWS DL

IMT-2000 UL IMT-2000 DL

1920 1980 2110 2170

U.S.

International

2www.cdg.org

Clearing AWS SpectrumClearing AWS SpectrumApril 21, 2006: FCC released a Ninth Report and Order• Published procedures by which new AWS licensees may relocate incumbent

Broadband Radio Service (BRS) and Fixed Microwave Service (FS) operations

• Effective date of these procedures was June 23, 2006*

August 9, 2006: Small Entity Compliance Guide for AWS Spectrum• Procedures designed to balance new entrant’s interest to quickly deploy new services

and minimize disruption to incumbents and their customers during transition

• Primary characteristics of the procedures are as follows:1. New entrant builds out its network, it will relocate incumbents;

2. New entrant does not begin operations in a particular geographic area before relocating the incumbents with which it would cause interference; and

3. New entrants and incumbents are allowed a period of time to negotiate the terms of the incumbents’ move to comparable facilities and, if the parties are unable to reach an agreement, the new entrant may involuntarily relocate the incumbent.

* Except for provisions requiring clearance by the Office of Management and Budget.

2www.cdg.org

Advanced Wireless Service (AWS) Band PlanAdvanced Wireless Service (AWS) Band Plan

U.S. Advanced Wireless Services (AWS-1) 1.7/2.1 GHz Band Plan

Reallocated 45MHzFrom Federal Operations

Under Trust Fund Legislation

Reallocated 45MHzFrom Non-Federal Operations

Under Emerging Technologies Policy

Notes: 1. FCC negotiated mandatory negotiation periods for Fixed Microwave Service (FS) incumbents in 2110-2150 MHz, 2160-2175 MHz,

and 2175-2180 MHz bands. Each FS negotiation is individually triggered and aligned with relocation procedures under Part 101 (Fixed microwave services) and Part 22 (Public mobile services) of FCC rules.

2. BRS operators must relocate on a system-by-system basis, not link-by-link as done in prior reallocations.

2www.cdg.org

U.S. Advanced Wireless Services (AWS-1) Band Plan Detail

Advanced Wireless Service (AWS) BlocksAdvanced Wireless Service (AWS) Blocks

90 MHz of spectrum

2www.cdg.org

1122 licenses were offered, covering the entire country:Cellular Market Area (CMA) – 2 x 10 MHz− Block A (1710-1720 MHz/2110-2120 MHz) – 734 licenses

Economic Area (EA) – 2 x 10 MHz and 2 x 5 MHz− Block B (1720-1730 MHz/2120-2130 MHz) – 176 licenses

− Block C (1730-1735 MHz/2130-2135 MHz) – 176 licenses

Regional Economic Area Grouping (REAG) – 2 x 5 MHz & 2 x 10 MHz− Block D (1735-1740 MHz/2135-2140 MHz) – 12 licenses

− Block E (1740-1745 MHz/2140-2145 MHz) – 12 licenses

− Block F (1745-1755 MHz/2145-2155 MHz) – 12 licenses

Advanced Wireless Service (AWSAdvanced Wireless Service (AWS--1) Auction1) Auction

2www.cdg.org

Cellular Market Areas (CMAs)Cellular Market Areas (CMAs)

Federal Communications Commission (FCC), Wireless Telecommunications Bureau, Auctions and Spectrum Division

Block ABlock A, 2 x 10 MHz, 734 licenses, 2 x 10 MHz, 734 licenses

2www.cdg.org

Economic Areas (EAs)Economic Areas (EAs)

Federal Communications Commission (FCC), Wireless Telecommunications Bureau, Auctions and Spectrum Division

Block BBlock B, 2 x 10 MHz, and , 2 x 10 MHz, and Block CBlock C, 2 x 5 MHz, 176 licenses each, 2 x 5 MHz, 176 licenses each

2www.cdg.org

Regional Economic Area Groupings (REAGs)Regional Economic Area Groupings (REAGs)

Federal Communications Commission (FCC), Wireless Telecommunications Bureau, Auctions and Spectrum Division

Block DBlock D, 2 x 5 MHz, , 2 x 5 MHz, Block EBlock E, 2 x 5 MHz, and , 2 x 5 MHz, and Block FBlock F, 2 x 10 MHz, 2 x 10 MHz, 12 licenses each, 12 licenses each

2www.cdg.org

AWS Spectrum Assignment and AllocationAWS Spectrum Assignment and Allocation

FCC AWS Auction Results:Action began: August 9, 2006 − 161 rounds

− 104 bidders won

− 1,087 licenses were issued

• 35 licenses without winner biddersAction ended: September 18, 2006

Total revenue: $13.9 billion (Net revenue: $13.7 billion)

Average Price per POP: $0.53 per MHz POP− Spectrum values have historically ranged from a low of $0.15 per MHz per POP

(Auction 22 in 1999) to a high of $4.74 per MHz per POP for the 10 MHZ of spectrum in the New York city BTA that was sold by NextWave to Verizon Wireless

Top 14 bidders: Represent 99% of total dollars spent at the auction; each spent more than $20 million on licenses

Technology Neutrality

The FCC called it the The FCC called it the most successful auctionmost successful auction of the public airwaves in history of the public airwaves in history

2www.cdg.org

4,795,07430Cable One (Washington Post)13,313,26930Cavalier Wireless

7,663,365Cellular South Licenses7,045,5449Cincinnati Bell Wireless

23,266,51085American Cellular Corp.35,803,11015Atlantic Wireless, L.P.60,498,394154AWS Wireless Inc.41,601,17417Barat License, L.P. (US Cellular)58,178,3041Denali Spectrum License, LLC (Cricket)

117,802,83999Cricket Licensee198,768,19848Cingular AWS, LLC144,544,4028Metro PCS AWS, LLC267,387,437137Spectrum Co LLC192,047,61113Cellco Partnership dba Verizon Wireless474,718,308120T-Mobile License LLC

Population Covered

Provisionally Winning Bids

Bidder

Top 15 AWS License HoldersTop 15 AWS License Holders

Considering CDMA Considering GSM Undecided

US Population is ~298 Million (Source: www.cia.gov)

Several CDMA operators have licenses to operate in the AWS frequSeveral CDMA operators have licenses to operate in the AWS frequency bandency band

2www.cdg.org

TT--MobileMobile

Source: Phonescoop.com, 2006

Verizon WirelessVerizon Wireless

AWS LicensesAWS Licenses

2www.cdg.org

MetroPCSMetroPCS CingularCingular

AWS LicensesAWS Licenses

2www.cdg.orgSource: Phonescoop.com, 2006

CricketCricket Barat (U.S. Cellular)Barat (U.S. Cellular)

AWS LicensesAWS Licenses

2www.cdg.org

A Successful New Entrant: Spectrum Co.A Successful New Entrant: Spectrum Co.Economic Areas (EAs) owned by Spectrum Co. (a cable company consEconomic Areas (EAs) owned by Spectrum Co. (a cable company consortium)ortium)

Meanwhile, Wireless DBS (a satellite consortium) dropped out entirely

2www.cdg.org

FCC is considering rules for the Unpaired Spectrum in the 2155-2175 MHz band (20 MHz of bandwidth):

Band is currently used by microwave and BRS systemsBand has been reallocated for AWSIncumbents will have to be moved from spectrum (multi-year process)

FCC is considering three different possibilities on how to carve up this 20 MHz of spectrum:

1. Allow uplink and downlink throughout the band for TDD or half-duplex FDD (HFDD), which would make this spectrum suitable for OFDMA TDD systems;

2. Allow downlink only throughout the band, which the FCC says in a few spots would make this band suitable for broadcast-type services or suitable for additional downlink spectrum for the AWS licensees who own the adjacent spectrum; or,

3. Allowing only fixed or base station transmissions in the upper and lower 5 MHz and then TDD or HFDD only in the middle 10 MHz.

FCC Notice of Proposed Rule Making (NPRM)FCC Notice of Proposed Rule Making (NPRM)

2www.cdg.orgSource: Cellular Telecommunications & Internet Association; FCC

Growth of Mobile Telephone IndustryGrowth of Mobile Telephone IndustryCommercial AWS should further expand U.S. mobile industry growthCommercial AWS should further expand U.S. mobile industry growth

June 2005 to June 2006

2www.cdg.org

CDMA2000 EcosystemCDMA2000 EcosystemReady to expand its strength and success into the AWS frequency Ready to expand its strength and success into the AWS frequency bandband

Experienced global suppliersExperienced global suppliersNot all CDG members are shown. Excludes operator members.

2www.cdg.org

AWS Special Interest Group (SIG)AWS Special Interest Group (SIG)

An executive forum to:Expand the number of AWS license holders that will deploy CDMA2000® equipment, devices and services in the AWS band

Build a strong ecosystem

Generate economies of scale and a competitive selection of CDMA2000 devices

Support regulatory efforts to clear AWS spectrum

Chairman: Egil Gronstad, Director of Technology Planning, Cricket Communications

Collectively, we should focus our efforts on strengthening the AWS business opportunity

Working together to create valueWorking together to create value