Transcript Sale of Upper 700 MHz A Block Spectrum

SALE OF UPPER 700 MHZ
A BLOCK SPECTRUM
A Common Spectrum Solution for Utilities and
Critical Infrastructure Enterprises
John Vislosky, Access Spectrum, LLC
September 2014
PURPOSE

Update on the Sale of the Upper A Block 700 MHz
Licensed Spectrum

Raise Understanding of:

the 700 MHz Spectrum’s Capabilities

the Spectrum Band’s Attributes

Licensing Rules

Applications

Coalition Document

Resources Available

Next Steps for Purchase

Contact Information
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UPPER 700 MHZ A BLOCK
• The A Block is licensed in 52 major Economic Areas
(MEAs) and covers al 50 States and US Territories – all
of which is available for acquisition
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UPPER 700 MHZ A BLOCK
•
The Upper 700 MHz A Block is a 2x1 MHz paired (2 MHz total) block of spectrum
licensed by the FCC in 52 geographic areas called Major Economic Areas (MEAs)
•
Upper 700 MHz licenses covering the entire United States and Gulf of Mexico are
controlled by Access Spectrum with 28 licenses & 2 other investment firms
(23 licenses & 1 license respectively)
•
Altogether the 2x1 MHz paired Upper 700 MHz A Licenses cover 313 million POPs
•
The Price of the Spectrum is .75c/MHz POP
•
Recent sale of 700 MHZ Spectrum by Verizon to T-Mobile received $1.89/MHz POP
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UPPER 700 MHZ A BLOCK
• A Block is 2x1 paired MHz block at 757-758 MHz and 787-788 MHz
• The 700 MHz band is often referred to as the spectrum equivalent of
“beach-front property” due to its superior propagation characteristics
o These propagation characteristics enable broader wireless
coverage at lower cost than in other spectrum bands
• In addition, the 700 MHz spectrum – formerly used for television analog
broadcast signals – is ideal for achieving in-building signal penetration
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UPPER 700 MHZ A BLOCK
• Favorable FCC Rules and Spectrum Attributes:
• No Build out requirements
• Rules call for Substantial Use
• Ease of renewal
• Is unencumbered/clear and licensed spectrum;
• Offers superior propagation characteristics (building penetration
and rural coverage) relative to other bands;
• Is governed by flexible service and technical rules which permit
a wide range of technologies and applications (Voice, SCADA,
Telemetry, and other Data applications);
• Base Station transmissions < 1000 watts ERP on the Higher
Frequency and < 30 watts ERP on the Lower Frequency, and the
Antenna < 305 meters HAAT.
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UPPER 700 MHZ A BLOCK
•
•
LCC International & AT4 Wireless completed a full field demonstration in
Herndon, Virginia using off-the-shelf TDD (WiMax 802.16) equipment
Demonstrated:
― Compliance with FCC rules
― No interference with adjacent operations
― Ability to pass data at ~700 kbps using 500 kHz TDD channel
• We Estimate that with customized equipment each 1 MHz channel would
pass data at > 1.5 Mbps
•
Great River Energy (GRE) has been a Leased Customer since 2005 on
the ASL Spectrum with a Point to Multipoint Solution.
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APPLICATIONS & SOLUTIONS


Operations
Power Delivery and Quality

Distribution and Substation
Automation

Data Analytics & Business Intelligence

Cyber & Physical Security

Fault and Protection Management

Network, Device & Asset Management

System Management

Workforce Management


Contractor Management
Forecasting and Demand
Response


Installation and Maintenance
Management
Advanced Metering Infrastructure

Emergency Push to Talk
Communications

Internet of Things Additional Revenue
Options- CII owns the Gateway to the
Home

Time Stamp

GPS

Control Channel to access Regional TV
White Space

Common Spectrum Platform for
Acquisitions

Customer Engagement


Energy Management
Unmanned Aircraft Systems for
Power Lines and Remote Sub
Stations
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UNMANNED AIRCRAFT SYSTEMS
• FAA and FCC working on standard and Whitepaper for Control and
operation of UAVs. Whitepaper due Q4 2014. Released after review in
January 2015
• Issue is Spectrum and Control
• No set frequencies to control spectrum
• Loss of Contact Return to Station or Immediate Land
• Three Entities are “Fast Tracked” for Application
• Hollywood
• Agriculture
• Critical infrastructure Industry (Utilities, Oil and Gas)
• Upper 700 MHz considered for use as:
• Primary Control Channel
• Secondary Emergency Control Channel
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UNMANNED AIRCRAFT SYSTEMS
• 5 Test Centers provide feedback and also commercialize DOD
Applications for industry (Texas, Nevada, North Dakota, Alaska and
Massachusetts)
• Nevada and Texas are looking to test exclusively on Upper 700
MHz A Block Spectrum
• Successful Test may mean Upper 700 MHz A Block wil be the standard
frequency for either Primary or Emergency Backup
• Utility/CII Applications:
• Fly the Lines (Distribution, Pipelines, Rural Sites)
• Substation and Overall Security
• Remote Sensing
• BOTTOM LINE As license holders Utilities would have the spectrum to
fly their own UAVs and/or serve as the Infrastructure Provider for
Nationwide UAVs
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COALITION DOCUMENT
Definition

Coalition answers the conundrum of availability of equipment in the Upper 700
MHz Band

CII concerns were that if they purchased the 700 MHz Spectrum as a “common
solution” that there would not be any equipment available in the 700 MHZ Spectrum.

Conversely, the Equipment/Infrastructure companies, asked if the CII would support
and purchase equipment if they made equipment in that frequency range.

In an effort to bridge this communication gap, The 700 MHz Licensees created
The Coalition Document which promotes Economies of Scale & Interoperability .

The Coalition Document is a non-financial, non-binding document that supports
the concept that the Upper A Block 700 MHz Spectrum is a viable solution for all
parties concerned. In addition to approaching the CII’s for signature, we seek
the endorsement of Equipment Manufacturers and Engineering Firms.
We encourage everyone to sign the Coalition Document
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KEY VENDORS
AGREED TO SUPPORT UPPER 700 MHZ
Signed Coalition Document
• Full Spectrum:
FullMAX 700 MHz
TDD
• 4RF: APRISA
• T3 Wireless
• Carlson Wireless
• IBM (endorsed)
Pending
• Convergence
Technologies, Inc.
• CISCO
• Motorola Solutions
• Silver Springs Networks
• You identify the
vendor and we can
jointly speak with them
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RESOURCES AVAILABLE
• UTC and UTC’s 700 MHz Whitepaper
• Studies of Estimated Infrastructure Costs for Major Economic Areas
(MEA); Major Service Areas (MSA) and Beacon Transmission;
• Assistance with Business Use Case Development for internal Budgeting;
• ASL’s Regulatory Attorney is available to provide clarity on license
transfer, procedure and verification of rules governing the
spectrum, etc.
• In-person presentations to internal decision making group
• Other assistance required- just ask
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NEXT STEPS FOR PURCHASE
1. The Licensees are in the process of “Parceling” their Upper 700 MHz
Licenses now to Individual CII and Utilities for Purchase
2. Contact Access Spectrum’s, John Vislosky, or Select Spectrum’s, Bob
Finch to set up an immediate meeting and/or for information and
Economic Area Map (EA) to determine the Licenses you wish to
purchase
3. We will confirm your Licensed Geographies and prepare a simple Term
Sheet to review terms and investment
4. If a proof of concept pilot is required we suggest it runs concurrently
with finalizing the purchase
5. Once the Term Sheet is fully executed and payment made Access
Spectrum and/or Beach Point Capital will coordinate with your
company and the FCC to transfer the licenses.
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CONTACT INFORMATION
John Vislosky, Access Spectrum, LLC
Email: [email protected]
Office: (301) 941-1110
Cell:
(240)-507-8816
Robert Finch, Select Spectrum/Beach Point Capital
Email: [email protected]
Office: (703) 635-2686
Cell:
(703) 906-0218
Brett Kilbourne, UTC VP, Gov't and Industry Affairs & Deputy GC
Email: [email protected]
(Office): (202) 872-0030
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