Wireless is a Competitor in the Broadband Marketplace

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National Spectrum Managers Association Industry
Round Table Christopher Guttman-McCabe Vice
President, Regulatory Affairs
CTIA The Wireless Association May 22, 2007
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233 Million U.S. Wireless Subscribers at
Year-End 2006
Source CTIA Semi-Annual Wireless Survey
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More Minutes of Use Overall 1.8 Trillion in 2006
Source CTIA Semi-Annual Wireless Survey
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Multiple Wireless Licensees Compete Nationwide
Source FCC 11th CMRS Competition Report
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Summarizing Growth and Innovation Over the Years

• 2006
• 98 digital nationwide networks
• 1.8 trillion MOU in 2006
• Avg. Data Rates up to 500 kbps
• Contribution to the economy
• Revenues of 125 billion annually
• 253,000 employees
• 223 billion cumulative capital investment
• In 1993 dollars, average monthly bill 35.34
• Nationwide coverage plans with no roaming
  charges
• No long distance charges
• Subscribers phones on 24/7

• 1993
• Service on local/regional analog networks
• 11 billion MOU
• Data Rates of 4.8 kbps
• Contribution to the economy
• Revenues of 8 billion annually
• 31,000 employees
• 12.75 billion cumulative capital investment
• Average monthly bill 67.31
  
• Local, long distance, roaming charges
  
• Landline surcharge

Minutes of use
Source CTIA Research
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High-Speed Line Growth
High Speed Net Adds by Type, Dec. 2005 June
2006

• In 1H06, total high-speed lines grew 26, from
  51.2 million to 64.6 million lines, and 59 of
  all adds were mobile wireless subscriptions.
• From June 2005 to June 2006
• ADSLs share of total broadband lines fell from
  38 to 35,
• Cable modems share fell from 56 to 44.
• Mobile wireless share of total broadband lines
  rose from 1 to 17 of total broadband lines.
• The share of other forms of broadband
  (including fixed wireless, satellite, fiber, and
  broadband over power line) remained at 4 of
  total broadband lines although their total line
  count grew 39.

Sources FCC Report on High-Speed Services for
Internet Access, Jan. 2007.
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Evolution of Wireless Technologies

CDMA
GSM
Other Technologies

Availability Now Now through Mid-2007 Now through Mid-2007 2009
Benefits Higher Speeds, Lower Costs, Greater Efficiencies Higher Speeds, Lower Costs, Greater Efficiencies Higher Speeds, Lower Costs, Greater Efficiencies Higher Speeds, Lower Costs, Greater Efficiencies
4G
3G
2G
OFDM MIMO
EV-DO Rev. 0
EV-DO Rev. A
1X RTT
UMB
EDGE
HSDPA
HSPA
LTE
WiMAX (802.16e)
New Entrants
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Wireless 3G Network Deployment

• Alltel AxcessSM Broadband service (EVDO)
  offers speeds of 400-700 kbps (more than 100
  cities, 44 million pops).
• Cingular/ATT Wireless BroadbandConnect (HSDPA)
  service offers speeds of 400-700 kbps (165
  cities, including 73 of the top 100 markets).
• Sprint Nextel EVDO service offers speeds of
  400-700 kbps (covers more than 200 million pops
  now, rising to 280 million by YE2008). EVDO Rev A
  network now covers more than 95 million people,
  and expansion of network upgrade continues. Rev A
  offers upload speeds of 350-500 kbps, and
  download speeds up to 600 kbps-1.4 Mbps.
• T-Mobile USA Offers mobile Internet access
  through its GPRS/EDGE network, with a typical
  EDGE download speed of 100 kbps, and operates a
  network of more than 8,000 wireless hotspots
  T-Mobile's HSDPA network is currently in
  deployment.
• Verizon Wireless EVDO-based broadband service
  offers speeds of 400-700 kbps (242 cities, 200
  million pops). Verizon is upgrading to EVDO Rev.
  A.

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Wireless licensees are deploying 4G networks

• Sprint Nextel will deploy a 4G broadband network,
  using mobile WiMAX technology with data rates of
  2 to 4 Mbps.
• Sprint Nextel intends to launch a mobile WiMAX
  broadband service capable of serving 100 million
  people by year-end 2008, using the 2.5 GHz band.
  Trial markets to be launched later this year
  include Washington, DC, Baltimore and Chicago.

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Key Wireless Spectrum Issues

• Additional Spectrum Needs
• AWS-1 Auction
• 700 MHz Auction
• Analog Transmission Sunset
• Illegal Repeaters/Jammers
• Skype/Carterfone
• PCS H-Block (1915-1920/1995-2000 MHz)
• PCS J-Block (2020-2025/2175-2180 MHz)
• 2155-2175 MHz

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Additional Spectrum Needs

• Industry continues to serve our more than 230
  million subscribers on less than 200 MHz of
  spectrum AWS auction just completed.
• The Advanced Wireless Service auctions
  including the 700 MHz auctions are the key to
  the continued success of the U.S. mobile wireless
  industry.
• U.S. mobile wireless industry is working to
  deploy mobile wireless broadband services that
  have the potential to break the cable modem and
  DSL duopoly. 
• The spectrum that is in the pipeline over the
  next two years will begin to put the United
  States on par with the rest of the world in terms
  of spectrum allocated for commercial mobile
  wireless uses.

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AWS-1 Auction

• Nearly 14 billion raised through the auction of
  1,087 licenses to 104 licensees.
• The auction effectively created three new
  nationwide licensees - Leap Wireless, MetroPCS,
  and SpectrumCo.
• Existing carriers gained valuable spectrum to
  continue expanding their service offerings.
• Clearing issues both commercial and government
  agency still remain.
• 1710-1755 MHz (government clearing) CTIA is
  facilitating meetings between new licensees and
  incumbents in the 1.7 GHz band.
• 2110-2155 MHz (commercial clearing) CTIA is a
  clearinghouse for the AWS spectrum and
  coordinates relocation reimbursements in the 2.1
  GHz band.

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700 MHz Auction

• Pursuant to the DTV transition, this valuable
  portion of the spectrum is scheduled to be
  licensed for commercial use.
• Key issues
• The spectrum must be brought to auction by the
  statutory deadline of January 2008.
• The auction must be free and open to all eligible
  bidders and should not limit the pool of eligible
  bidders to the detriment of consumers.
• Open access and Net Neutrality obligations on the
  spectrum must be avoided to allow the spectrum to
  be used to its fullest potential.
• Buildout obligations should be population-based.
• The proposal by Frontline Wireless to burden a
  block of spectrum with a number of public policy
  obligations should not be allowed to devalue the
  700 MHz spectrum.

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Additional Sources of Spectrum

• PCS H-Block (1915-1920/1995-2000 MHz)
• PCS J-Block (2020-2025/2175-2180 MHz)
• 2155-2175 MHz
• M2Z Networks proposal for a spectrum give-away in
  this band was rightly denied by the Commission.
• This spectrum should be auctioned to the highest
  bidder as they are most likely to put the
  spectrum to its highest and best use.

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Current Spectrum Issues

• Analog Transmission Sunset
• The Commission must maintain the analog
  transmission sunset date in the face of the alarm
  industrys request for an extension.
• Spectrum efficiency suffers on networks of
  carriers forced to maintain analog capacity.
  Most carriers have fewer than 1 of their
  subscribers using analog equipment.
• Some carriers are spending as much as 15,000 per
  subscriber per year to maintain analog capacity.
• Illegal Repeaters/Jammers
• Use of illegal repeaters and jammers by consumers
  causes interference to other handsets in the
  vicinity of the illegal equipment as well as the
  carriers network.

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Current Spectrum Issues

• Skype/Carterfone
• Carriers need to be able to control the spectral
  environment for their network in order to
  maximize efficiency.
• Proposals for technical standards and open access
  to carriers air interfaces will freeze innovation
  in spectral use and ultimately prevent the
  considerable gains in efficiency that are
  realized with each successive wireless standard.
• Wireless handsets are a crucial part of the
  spectral environment and as such must be
  carefully managed by carriers.