Promoting Competition, Innovation, and Public Safety with Wireless Broadband May 2007

1 Overview: Policy Priorities Broadband: President’s goal of universal, affordable broadband access by Competition: More competition needed in U.S. wireless and broadband markets to promote IT investment. –“Virtuous cycle” - Competition drives increased innovation, which drives increased consumer demand for services, applications. President’s Spectrum Initiative: Focus on efficient ways to manage spectrum. “Keeping our competitive edge in the world economy requires focused policies that lay the groundwork for continued leadership in innovation, exploration and ingenuity.” American Competitiveness Initiative February 2007

2 Frontline proposal provides a market-based solution to critical telecom problems 1.Brings competition to telecom markets through wholesale independent wireless network, enabling pipes that deepen broadband penetration. 2.Brings Internet innovation to the walled garden wireless market by creating an open access platform, foster new services and applications. 3.Ensures nationwide solution for public safety interoperability with a state-of-the-art broadband network via a public-private partnership.

3 Public Safety Private Partnership Service Rule Proposals 1. Designate 10 MHz block of commercial spectrum next to public safety –Network sharing with public safety priority on commercial for emergencies –Build out requirements ensure service to nearly every American (>98%) –Commercial licensee obtains secondary access to unused PS capacity 2. Require “open IP” wholesale commercial service for this spectrum –Any device, with “no harm” rules (like Part 68) –Any service provider, different QOS for different needs –Roaming solution for rural and other carriers seeking to fill in holes Key Benefits “Free Buildout for PS” Double the spectrum available for emergencies Local unit level command and control National Interoperability and roaming Innovation from open device and application interconnect 3

4 Stakes are high: FCC decisions will shape the next generation of telecommunications Wholesale rule required to align incentives to create maximum competition Public-Private sharing rules required to realize efficiencies of sharing spectrum and infrastructure with public safety Open Access provision required to unleash Internet innovation in the wireless space DE credit required to enable new entrants rather than the same old faces Minimalist, market-based, non-invasive No legislation needed Uses only 10 out of 80 MHz allocated for commercial use in 700 MHz band, and less than 3% of all CMRS spectrum Benefits of Frontline E-Block proposal