Intel Confidential — Do Not Forward

International Experience of Frequency Re-

farming for Mobile BroadbandWorapat Patram

Director of Corporate Affairs – Thailand

Director of Communication Policy – Asia Pacific

Agenda

• Corporate Overview

• Growing Traffic Demand : Need for More Spectrum

• Spectrum Re-Farming : EU & US

• Incentive Auction

• Leading Manufacturer of Computer, Networking & Communications Products

• 185 Sites in 63 Countries

• $53.3B in Annual Revenues from Customers Worldwide

• 25+ Consecutive Years of Positive Net Income

• Over 105,000 Employees

• 82,400 technical roles, 9,200 Masters in Science, 5,300 PhD’s, 4,000 MBA’s

• One of the Top Ten Most Valuable Brands in the World for 12 Consecutive Years

• Ranked #42 on Fortune’s World’s Most Admired Companies

• Invests $100 Million Each Year in Education Across More than 100 Countries

• Largest Voluntary Purchaser of Green Power in the United States

• >5M Hours of Volunteer Service in Our Communities over the Past 5 Years

Intel Corporation:The World’s Largest Semiconductor Manufacturer

Agenda

• Corporate Overview

• Growing Traffic Demand : Need for More Spectrum

• Spectrum Re-Farming : EU & US

• Incentive Auction

Demand Of Traffic Is Growing

• ITU-R M2078 has

recommended that by 2020,

at least 1720 MHz of

Spectrum is needed to

accommodate the growing

demand of traffic.

Total spectrum

requirements for RATG 1

Total spectrum

requirements for RATG 2

Total spectrum

requirements RATGs 1 and 2

Lower user density settings 440 MHz 900 MHz 1 340 MHz

Higher user density settings 540 MHz 1 420 MHz 1 960 MHz

Working Party 5D

Where will the spectrum come from?

6

Source: Plum Consulting, London

Agenda

• Corporate Overview

• Growing Traffic Demand : Need for More Spectrum

• Spectrum Re-Farming : EU & US

• Incentive Auction

ITU

The efficient use of wireless requires government action in

the form of spectrum refarming, the clearing of frequencies

from low-value (by economic and/or social criteria) and

reassignment to high-value applications. This is a complex

and difficult task in that the occupants of the frequencies

to be reassigned are unlikely to be pleased by the change,

because of disruptions to their activities.

http://www.ictregulationtoolkit.org/en/toolkit/notes/PracticeNote/

2320

Spectrum Refarming

Generally speaking, refarming may be seen as process constituting

any basic change in conditions of frequency usage in a given part of

radio spectrum. Such basic changes might be:

Change of technical conditions for frequency assignments;

Change of application (particular radiocommunication system using the band);

Change of allocation to a different radiocommunication service.

Source: http://www.ictregulationtoolkit.org/5.2.4.9

Permit licensees to deploy newer technologies

Regulators repurpose frequency bands that have historically been

allocated for older technologies to newer technologies

Typically allows current licensees additional flexibility to deploy

newer technologies

European decisions to 2G (e.g. GSM) or 3G(e.g. UMTS) licensees permitted to deploy

4G technologies (e.g. LTE)

USA decision on service flexibility in 2.5 GHz band

European Union Decisions

In 2009, the European Union decided to update the “GSM directive to

permit “3G” technologies to use the 900 and 1800 MHz bands.

European Directive (2009/114/EC)1

Decision (2009/776/ED)2 on the 900 MHz and 1800 MHz bands

In 2011, it was updated to permit “4G” technologies to use the bands

2011 Commission Decision (2011/251/EC)3

In Nov. 2012, the European Commission gave member states until 30

June 2014 to refarm the 2 GHz spectrum band (1920-1980 MHz/

2110-2170 MHz) used by “3G UMTS” services for “4G LTE” services.

Commission implementing decision C(2012) 7697

1 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0025:0027:EN:PDF2 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:274:0032:0035:EN:PDF3 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:106:0009:0010:EN:PDF

4 https://ec.europa.eu/digital-agenda/en/news/commission-implementing-decision-c2012-7697

US 2.5 GHz

In July 2004, FCC issued new rules for 2496-2690

MHz

FCC goals were:

Encourage innovation by maximizing flexibility

Promote broadband deployments

Provide incumbents with reasonable opportunity to continue

current uses

Enable a quick transition to the new band plan.

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-135A1.doc

US 2.5 GHz

3 year transition period (transition to new band plan)

Spectrum leasing (secondary market)

Technology neutral

Permitted mobility

Allows FDD or TDD operation

http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-135A1.doc

MMDS 2.5 GHz band

• 190 MHz given flexibility to move from high power

1-way video to low power 2-way data.

FCC approach:

• Changed service parameters

• Rebanded to create contiguous licenses

• Didn’t take back spectrum, nor charge fees

• Permitted long leases with non-profit neighbors

14

•Attracted 3.2 billion in

new capital

• Enabled new BWA

(high-speed)

competition

• Fostering Industry

Innovation

USA: Service Flexibility

US 2.5 GHz Band PlanNew band plan

Low power operation with high power operation in middle

16.5 MHz blocks, Any channel size

Regional licenses

Dual mask (block edge) (43+10Log(P) and if needed 67+10Log(P) - 3 MHz from channel

edge (operator negotiable)

47 dBuV/m @ 1.5 meter height at licensee boundary

A1B1

A2B2

A3B3

A4B4

C1D1

C2D2

C3D3

C4D4

E1F1

E2F2

E3F3

E4F4

G1H1

G2H2

G3H3

G4I

2500 MHz

CURRENT PLAN

A B C D

BRS1

ADOPTED PLAN

2496

2495 MHz

1 MHz GUARDBAND

6

2502 2518.5 2535 2551.5

2568

4(4) 16.5 MHz BLOCKS

CONSISTING OF (3) 5.5 MHz CHANNELS EACH

Flexible Use- “PCS like” rules

2572

A B C D G F E

BRS2

4

E F H G

(4) 16.5 MHz BLOCKS

CONSISTING OF (3) 5.5 MHz CHANNELS EACH

Flexible Use- “PCS Like” rules

2614

6

2572

2578

2584

2590

2596

2602

2608

2614

2618

2624

EBS

BRS

GUARD BANDS

BRS CHANNELS 1 & 2

2640.5 2657 2673.5

(7) 6 MHz BLOCKS

High Power Operations

A1B1

A2B2

A3B3

A4B4

C1D1

C2D2

C3D3

C4D4

E1F1

E2F2

E3F3

E4F4

G1H1

G2H2

G3H3

G4I

A1B1

A2B2

A3B3

A4B4

C1D1

C2D2

C3D3

C4D4

E1F1

E2F2

E3F3

E4F4

G1H1

G2H2

G3H3

G4I

2500 MHz

CURRENT PLAN

A B C D

BRS1

ADOPTED PLAN

2496

2495 MHz

1 MHz GUARDBAND

6

2502 2518.5 2535 2551.5

2568

4(4) 16.5 MHz BLOCKS

CONSISTING OF (3) 5.5 MHz CHANNELS EACH

Flexible Use- “PCS like” rules

2572

A B C D G F EA B C D G F E

BRS2

4

E F H G

(4) 16.5 MHz BLOCKS

CONSISTING OF (3) 5.5 MHz CHANNELS EACH

Flexible Use- “PCS Like” rules

2614

6

2572

2578

2584

2590

2596

2602

2608

2614

2618

2624

EBS

BRS

GUARD BANDS

BRS CHANNELS 1 & 2

2640.5 2657 2673.5

(7) 6 MHz BLOCKS

High Power Operations

Agenda

• Corporate Overview

• Growing Traffic Demand : Need for More Spectrum

• Spectrum Re-Farming : EU & US

• Incentive Auction (U.S.)

Change of allocation to a different

radiocommunication service.

Refarming spectrum from current service to new service,

US process of refarming broadcast spectrum for mobile broadband via incentive

auctions

US Incentive Auctions

Incentive auctions are a voluntary, market-based means of

repurposing spectrum

Introduced in the 2010 National Broadband Plan

In February 2012, Congress authorized the FCC to conduct incentive

auctions and directed that the FCC use this for auction of broadcast

television spectrum.

In September 2012, the FCC adopted a Notice of Proposed

Rulemaking

Source and further information:

http://www.fcc.gov/incentiveauctions

US Incentive Auctions

•2-step process

1) Incumbents (e.g. broadcasters) decide price at which they will give up license.

2) New users (e.g. mobile operators) decide price they would pay for cleared spectrum

•Benefits

Taxpayers

• New users’ price- incumbents’ price= $ to US Treasury

Incumbents/ new operators

• Entirely voluntary so spectrum reallocated only when the parties agree new use

more valuable than existing one

Consumers

• Lower prices, more minutes of use, less congestion and new more valuable services

would dwarf the gains to incumbents, broadband operators and taxpayers.

Intel Confidential — Do Not Forward