Intel Confidential — Do Not Forward

Intel Telecommunications Policy Peter Pitsch and John Roman

Global Public Policy

August 2013

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Agenda

Intel advocacy

Intel’s communications policies

BKMs

Spectrum below 1 GHz and white spaces

Summary

Intel Advocacy

Trusted advisor role

Globally consistent

Intel’s interests align well with consumers

Venues

National administrations

ITU study groups, GSR, CITEL, Broadband Commission,

Broadband and USF workshops

NGOs, Associations

Multi-nationals

Intel’s Communications Policy

Foster high quality, widespread and affordable broadband

Strong incentives for facilities investment

Competition with minimal government intervention

Targeted, competitively-neutral universal service funds—ex:

school and Rural Focus

Intel’s Communications Policy

Promote broadband adoption

National broadband plans with specific, time-bound goals

Subsidies to connected and equip the underserved

Demand-side programs

Digital literacy, E-government programs

Public private partnerships for first-time buyers

Tax policies

Intel’s Communications Policy

Reduce spectrum scarcity

Abundant, technology-neutral spectrum assignments with

flexibility for carriers

Aggregation subject to competitive review

Minimal technical regulation, harmonize to international

standards

Assignments by auction

Broadband Investment BKMs

U.S. adopts “new wires/ new rules” policies

Facilities-based competition policy promotes last mile fiber

“U.S. broadband companies have invested $250 billion in Internet upgrades since the recession began in 2008,” WSJ, August 5, 2013, p. A13

85% HH have access to >100 mbps broadband, Id.

Only Korea & US have new fiber, cable modem & LTE

90% HH can choose between two wired bb providers, Id.

In contrast, the EU has unbundling and copper loop & fiber price regulation undercuts investment incentives

Only 50% HH have access to >30 mbps, Id.

Comm’r Kroes recognizes EU has too little last mile fiber

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• 42.2 % of fixed broadband lines provide download speeds of at least 10 Mbps

• 88.0 % of fixed broadband lines are at least 2 Mbps download, but

• only 6.5 % of fixed broadband connections were at least 30 Mbps, and

• 0.9 % at least 100 Mbps download.

High Speed Internet access in the EU ? Status July 2011

Source: DG INFSO/C4, COCOM11-24, Brussels, 19 December 2011, COMMUNICATIONS COMMITTEE Working Document “Broadband access in the EU: situation at 1 July 2011”

Spectrum BKMs

U.S. market based spectrum polices, e.g., 190 MHz of MMDS repurposed w/o

delay & drives LTE

Contrast with Mexico/Brazil/Canada/EU

94% HHs have LTE, WSJ, August 5, 2013, p. A13

Deregulated mobile market rivalrous & performing well

Last 18 years RPM fell from $.40/minute to $.05/minute

2007-12 the top four carriers invested ~$20 billion/year

Significant entry has and continues to occur

Gerald R. Faulhaber, Robert W. Hahn, and Hal J. Singer, “Assessing Competition in U.S. Wireless

Markets: Review of the FCC’s Competition Reports,” 64 Federal Communications Law Journal

319 (March 2012).

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2.5 GHz

700 MHz

Spectrum Below 1 GHz

• Digital Dividend provides important spectrum for wireless broadband

• Countries identifying DD for mobile use, Africa and Middle East – target

2015

• US transitioned 104 MHz for licensed use, limited unlicensed

• White spaces, unlicensed use of gaps in allocations, such as TV stations

• Strict channel emission limits needed

• Equipment limited, QoS & build-out issues for wide area use

• Policy Guidelines

• Clear spectrum for use on an exclusive licensed basis.

• Share spectrum on a licensed basis.

• Share spectrum on an unlicensed basis.

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Broadband and Universal Service BKMs US national plan

Plan launched in 2010, broad targets for BB and spectrum availability, universal service reform, competition review

Good progress to date, US BB avail report: 2010-2012; 98% of Americans have access to 3 mbps, several bands identified for spectrum assignments, on track to most goals

http://benton.org/initiatives/national_broadband_plan#recommendations

Colombia

Live Digital plan in 2010, targets for deployment and adoption, demand creation now major focus

Tax eliminated on PCs in 2006, growth 2x versus rest of region, computers for education

71% increase in subscribers 2010-2011

http://www.mintic.gov.co/index.php/mn-english-news/216-english-news

Brazil

Broadband 2.0, sweeping tax reforms for devices and broadband

Assignment of 2.5 GHz spectrum

Intel’s 3rd Billion efforts

Pre-paid BB, low cost PC, targeted content

Segmenting is beneficial and profitable – 50+ global programs, millions of new first time subscribers

http://www.intel.com/content/dam/www/public/us/en/documents/corporate-information/reaching-the-third-billion-presentation.pdf

USF Programs

USF regulations have evolved from just basic connectivity to the inclusion of broadband, Services and devices

Centrally located Broadband centers with computers, digital literacy training, advertising – Point of presence

National Education programs, with support for local content – great societal benefit, Big political interest

Turkey BB, 650k teachers PC’s

Malaysia – BB, 1M student PC’s

India – BB, devices for students

Sustainability emerging focus – incentives: example from Pakistan, operator gets subsidy for connection after subscription

Demand Acceleration Programs

If you build it, they still wont come

• Digital training – E-gov programs

• low cost bundles of subscriptions, content and devices

• Tax reductions on equipment

Summary

• Broadband has great societal benefits

• Broadband plans with SMART goals are essential

• Deploy subsides such as Universal Service Funds (USF)

• Assign technology neutral spectrum for wireless broadband

• Government led demand creation, PPP

• Competition, even at facilities level

Q&A

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THANKS

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