LightSquared 4G State of ND  Capabilities Update  Better “DCN wireless” idea?  Current Issues  Objectives  Strategy

Capabilities Update  FCC  New USF get support for DSL replacement  Own netowrk like DCN  PSST Support  PSST will support LTE technology  PSST  North Dakota Influence  We can meet Governors Staff  Proposal Development

No Duplicate Funding Issues  Duplicate funding rules Grant Programs  Public Safety only networks are middle Mile, not last mile  Coops can apply for last mile funding without duplication  apply as a group for a BTOP Public Safety waiver, circumventing the funding restrictions as defined by (Served, Un-served & Underserved)  Flows PS & Commercial, is considered Middle & Last mile  Governor establishes priority for BTOP Grants

Review Objective  Initial Objectives  Win the Grant & Prevent Flow from getting funds  Build network that we control  Service Public Safety initially  Eventually commercial in your territory

Problems with Initial objectives  Flow Mobile has achieved:  General Sprynczynatyk (Nat Guard) signed agreement with Flow  Governor has publicly supported Flow  NENA & APCO local chapters support Flow  General Sprynczynatyk filed a second waiver to the FCC  Demonstrated the 700 MHz to the Governor (Coops None)  Project cost estimated at $35 million (Coops $~50 Million)  Significant ND Governmental inertia  Coop Objections to Objective  Don’t want to compete with Verizon  Will request funds for own FTTH or Wireless projects  Don’t want to be subject to Duplicate Funding Rule

Revised Objectives  Oppose at PSST & FCC (Good Chance)  Beat the waiver for spectrum allocation (Narrow Band)  Beat the waiver for spectrum use (Commercial)  Beat the D block request  ND Governor  Get the Governor to publically agree to a beauty content  The beauty contest needs to go beyond the 14 th  Our individual ILEC submission must be in on the 14th

Strategy Discussion  Initial Proposal  Build a new network $50 Million, 141 towers  Alternative Proposal  Partner with Verizon  Pay for the Public Safety Radios and CPE on Verizon’s 4G network, at an estimated cost $12 million

Beauty Contest  Get the Governor to publicly agree to a beauty contest that will push us beyond the 14 th.  Verizon is credible  Coops are credible  Only Public Safety, Middle mile only  No adverse waivers needed, PSST will support  PSST Inter-Operable  $12 million, cheaper than either of other proposals.

Now What!  Fight the Waiver  Oppose at PSST  Delay the Governor’s support  What do we propose to the Governor?  Who is onboard ?

Proposal Comparison

Would Verizon Participate?  We would request early deployment of 4G  We would make it financially attractive  Why would Verizon consider it?  Would move the build forward, ahead of the ATT conversion of ALLTEL to GSM  Prevent the funding of a Verizon Competitor using Grant money  Guarantee the state broadband agreement worth $1.9 mm & bundle with voice agreement of similar value  City of Fargo uses ALLTEL, not Verizon  Growth of state subscribers would increased USF  Demonstrate a great model for them to duplicate