Pes Myths Regarding DE Status

r ALPINE pes, Inc.

pes Myths Regarding DE Status

A Small Carrier's Dilemma RE. C-Block Reauction in Auction 35

1 I ALPINE pes, Inc. Myths Surrounding Auction 35

CD Large carriers need additional spectrum. ~ Only large carriers can build out the spectrum. ® The DE's are inactive and not building.

@ Acquisition ofthe C and F blocks by the large carriers will best serve the public interest. ® 10 MHz is sufficient for the small carriers.

2 ALPINE pes, Inc.

Large Carriers Are Trying to Grab Spectrum

• Sprint PCS • AT&T • SBC - Bell South • Verizon

3 ALPINE pes, Inc. Sprint pes

• Has spectrum in all areas ofthe USA - 33 MIAs in lower 48 - 129 BIAs in the lower 48 • Sprint reports using no more than 7.5 MHz in any market • Sprint is only building major metropolitan areas and corridors/highways between • Sprint is allocating spectrum to affiliates to build out their smaller markets

4 ALPINE pes, Inc. Sprint Holdings

Green - MTA's Red-BrA's Source- CTIA 5 ALPINE pes, Inc. S.pr.il1t~.~ Home Page within the Nationwide Sprint pes ' Network. When you trayel, incomin\il calls find you automatically. There's no need to tell us where you're going Or enter any specl.. 1codes. a..

o Current Cover8ge _ Future Coverage C Roaming Coverage ~:r]k~. ;;; 4l' -:;!::l' ~ - .... , •.>:, . ) ...... ~ i.... 'i ...... ''" ,.....'..__~,. .a!£......

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6 ALPINE pes, Inc.

Sprint Buildout in Northem Michigan

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7 ALPINE pes, Inc. Alpine Buildout in MI

pes Markets Existing Towers at ~/00 • Planned 1.9 GHz pes Towers

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.Y 8 ALPINE pes, Inc. Sprint Buildout in San Francisco

o Current Cover.ge L_, •Futu,e Coverage i('iY UIlOOln ' "-., • ! "-,. ,it; • Aubum r I , ''" , • '.•aj ~ .a.~.. :•. , 'c" RocIdin ~

~',(i~ -,'r",S.Ciament~ '''1 • . (li; • :!!t ~ Rancho • HMlcItb..... , Cthtoga~I Davis ,,~ 1~'I&'l.,·.1J.1tton ' St" I _ ,," ~",.I" .. /-"""~'"'" " ,"'tville SIInt. Rosa, c.:turg Ell; Grow l • \. ... J '"Pi • ~ ':.....PQI •11' "2t!"'-= ... l!t! .I.'" 7',$>- •• . Stmom-...... Fl "''''1>. ~/t., I"""";;"@ ~(ol)' .,.("'!" WOOdbridge,?, "\ .~,,'~".")~ "~-I.JJ~,', "l~'''''.J''....., , '.' .,,. ._:~~;<~-,'",-"., .•...•• ;,:,y""""._.,~. (4/" " Antfoob, ".,_ "',,~"" "f• '"ey • • ;; c.. "

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• Has spectrum in most areas ofthe lower 48 - 22 MTA's - 189 Physical BTAs (no double counting) - 150 Cellular Licenses • Using surrogates to build out rural markets

10 ALPINE pes, Inc. AT&T Wireless

Purple - MTA's Green- BTA's Blue - Cellular Source - CTIA

11 ALPINE pes, Inc. AT&T Home Page

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...... '" ,:"/"~<,\:,,:i,'!.:'" ~ ·• ••··•••..•.•••.••.• ·,,,.,,,:»tf i , ., ,..•-._-- ,~~ AT,-r • Canada Marin. Cov.rag.• • Wlr." Cov.rag. M and r.o.lve 001115 • Canada Wlr.I... Cov.rag. Servlo.. In Canada provided by • US Marine Coverage Cant.IIAT&T. • Canada Digital PCS •• • ••• AT&T Digital One Rat...",m Dlgltoll PCS t.oItur•• ..,. oIvalloible. with AT&T CanOlda Calling • AT&T Dlgl1al PCS •• • AT&T Digital On. Rat.o:m Digital PCS teatur..s are available. • Canada Digital PCS Digital PCS features are available. U.S. AT&T POIrtnership M,"ket S4lrvlc. In Canada provld.d by Digital PCS Cov.rag. Ar.a Cant..IIAT&T . •• M.xlco Wlr.le.. Cov.rag. This map Is a very general r..presentatlon of wire I ..... oov..rag... Cov.rage areas shown are appro)dmate. Actual cov.rag. may vary du. to customefo: .qulpm.nt, t.rraln. syst.m limitation. and w.ath.r condition•. 12 ALPINE pes, Inc. SBC

• SBC never entered auctions - but acquired companies that did - Pac Bell - Ameritech • SBC and BellSouth are merging wireless properties to expand their footprint • SBC claims that they are spectrum constrained in Dallas - Yet they are selling spectrum inefficient analog phones for low end and prepaid service in Dallas and DC - Their need is primarily footprint not bandwidth in existing markets 13 ALPINE pes, Inc. SBC BellSouth

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MSA/RSAs: AmeMtech Cellular • BTAs: SBC Wireless D BTAs: BeIlSouth Mobility DCS • MSA/RSAs: SBC Wireless o MSA/RSAs: BeliSouth Corporetlon MTAs: Ameritech Cellular • MTAs: BellSouth Mobility DCS D MTAs: Pac~lc Bell Wireless D States

Source - CTIA 14 u• c -enII' a.U LLI Z -a. ... ~ C u =0 ~ 0 .t,.... N .,....u .~ ~ < Q) ~ Q) ~ > d ~ c.8ca ~< ~ ~ ~ 0 (]) ~ > ~ (j • • • ALPINE pes, Inc. Verizon

o MSAlRSAs: GTE Wireless o MSAlRSAs: Bel Atlantic Mobile MSAlRSAs: AirTouch Communications MTAs: AirTouch Communications MTAs: GTE Wireless ~ States

Includes Overlap Source - CTIA 16 ALPINE pes, Inc. Verizon

• As with SBC, why do they need spectrum ifthey continue to sell spectrum inefficient analog service? - Prepaid plans are analog* - Low end plans are analog • Answer: 1. They need footprint 2. To stifle competition in served markets *Prepaid is the fastest growing segment ofthe business

17 ALPINE pes, Inc. pes Truths

• The larger companies will use new spectrum to expand footprint and/or stifle competition • Using the C-Block is easier than developing new infrastructure for other bands like 700 MHz

18 ALPINE pes, Inc. pes Truths (cont'd)

• Larger companies lack the capital to build out the rural markets - Some ofthe larger companies are renting their spectrum to affiliates to build out secondary markets - Some ofthe larger companies are only building the corridors between their large markets

19 ALPINE pes, Inc. pes Truths (cont'd)

• True Designated Entities are actively building - AlpinePCS - Leap - Tern Wireless - Noverr - Omnipoint - Etc.

20 ALPINE pes, Inc. pes Truths (cont'd)

• The public interest is better served ifthe DEs are allowed to compete on equal terms with the large carrIers• - In major markets - With no less than 20 MHz ofspectrum - Using innovative service plans such as "all you can eat" - And the large carriers can't concentrate & warehouse spectrum and thereby prevent DEs from developing successful businesses

21 ALPINE PCS, Inc. pes Truths (cont'd)

• 10 MHz is insufficient to compete with 30+ MHz - Actually 5 MHz in each direction - Only supports three 1.25 MHz CDMA carriers - "all you can eat" service plans require very high network capacity and consumes all 3 CDMA carriers quickly - 10 MHz not sufficient to support "all you can eat" and have room for any other services - cdma2000 Phase 2 requires 5 MHz ofcontiguous spectrum - Sprint's & US West's petition/proposal is a ploy to put future competition in the major markets at a significant "spectrum starved" disadvantage, and thereby minimize the spread of "all you can eat" service plans

22 DE Needs ALPINE pes, Inc.

•C and F Blocks belong with the DE's (Ifthe DE spectrum is open to all bidders then the real DE's will be out bid) • There needs to be a healthy, functioning small business block so that there will be: - Roaming among DEs (e.g., Sprint discourages roaming outside their or affiliate's networks by charging roaming charges of$.39 to $.69 per minute when outside these networks but not when in "their" network) - Economies ofscale for purchasing (vendors charge at least 20% more to small carriers than they charge big carriers or affiliates ofbig carriers) - True competition to the big carriers

23 Ll!cent Technologies 0 Evolving cdmaOne Networks to cdma2000 (~'Cr"t'."' .

cdmaOne deployed Additional cdmaOne Microcells deployed for 3G services deployed with single 1.25Mhz carriers deployed for additional capacity, highways, with cdma2000 Radios carrier capacity and/or inbuilding services usfng available Spectrum

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