4G Mobile VenturesNetwork Investments

Jim Baker, Managing PartnerXenventure

Key U.S. 4G Network Investments

Largest holder of 2.5GHz spectrum in the United States

Raised over $3 billion in equity from major strategic investors

CLEAR™ 4G service currently live in 74 metropolitan markets

Launches in Q4 2010 include Los Angeles, NYC, San Francisco

Targeting coverage of >120 million people by end of 2010

Wholesale strategy with investors, and possibly T-Mobile

Currently testing 40MHz FDD LTE in Phoenix AZ yielding >20Mbps

Overview

Focus on building out network – must be top priority

Clear turns on a new base station in New York every 90 mins

Clear users consume 7GB/month; backhaul capacity is key

Monetize spectrum to raise capital to continue network build

Relationships with other carriers like T-Mobile is critical

Medium term move to LTE essential for network sharing

Challenges

Acquired ‘C Block’ spectrum in the 700MHz band for $4.74 billion

National spectrum footprint covering 298m people

Regional spectrum covering 171m, acquired for $4.89 billion

Launching LTE in up to 30 markets in 2010, covering 3G area by 2013

Average user speeds of 5-12Mbps down, 2-5Mbps up (like WiMAX)

Created $1.3 billion 4G Venture Forum to fund innovation in LTE

Alcatel-Lucent Ventures, Charles River Partners, New Venture Partners, North

Bridge Venture Partners, Norwest Venture Partners and Redpoint Ventures

Overview

10 + 10MHz implementation is better than 3G but…

Will be much slower than possible Clearwire 40MHz FDD LTE

European LTE offers >30Mbps down and >15Mbps up

Must replace legacy EV-DO Rev A swiftly to improve data offering

VoLTE versus dual-mode CDMA

Initial deployment will use CDMA for voice

Challenges

Created by Harbinger Capital Partners in mid 2010

Launching hybrid LTE/satellite wholesale network

59MHz of spectrum in various bands

40,000 terrestrial base stations, two satellites

Announced initial partnership for SmartGrid applications

Aims to cover 92% of U.S. population by 2015

Initial roll-out starting Q3 2011 in Las Vegas, Phoenix, Denver, Baltimore

Awarded $7 billion, 8 year contract to Nokia Siemens Networks for build

Secured $1.75 billion in initial funding, committed $3 billion in total

Overview

Transport Vertical

Funding

Analysts think network build could cost >$5 billion

40% of the Harbinger fund’s portfolio is tied up in LightSquared

UBS provided $850m debt funding in September 2010

Harbinger sold off 14% of Inmarsat to raise $650m

Create wholesale and vertical partnerships early on

Airspan for SmartGrid

Indian Health Service to provide communications to remote areas of

Native American reservations

Challenges