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Pes Myths Regarding DE Status

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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!£.. .... --,_ , .~. v· . -- -.. -,- •.' ""'F" " .. -- -. ...... .""'~_~_~..,'.'~':~'" ,,(,....".;;.. '......' '.. •.... ::;:'~_c=.,..,......_=-,--- ..... ~.. "\1 ~ DC L•• AooIooIoO . ; '.,.''.':*',II' .-"'-.'. ...",..~~, ..,_.*,,-- ""lIioto'" •......'<C.' . __.,.,.1loIIa ,~ ••£. ,,--,,--=t- .. -':' ~:. ~ -,. ~.J .... ' 1\ Iit*"~ \ "='---- .c~ \~ L T_ llIIoMo \ '-COrloD ft,.,..· E - ...,- ...... i--,\ ;;;;-'\ I ..' . l ---.".... I (:~~ \:./~--~ "'---~ 6 ALPINE pes, Inc. Sprint Buildout in Northem Michigan R4Ilcwld ~.S..-ch...... Pril'Il .... ~•.. 31'Jr i~~I~lp:IIs4~~~i~~~~~omIiearnl~how~eI;~~~P?;~~i._- ----~... • 1!~,.·.·.8~,.··"!l/.~ ··@!l··.....··e·~..,.·.:~·gf sno\IJn on the map above. ~ • I CMMDA WI IL 7 ALPINE pes, Inc. Alpine Buildout in MI pes Markets Existing Towers at ~/00 • Planned 1.9 GHz pes Towers i, i, ~- .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.. " .... • ~I'! ~ . O\~~.!!"Oftt "L':-'Atto ""~" 's.,*.,. \,;....• ~ .... L:eJ i, ". '~""o,~;*',~.". '-'.. l.M~, 't!Y "'.•.-\ '\., <I'll.' ""!l','-...v" .l~,.,.~'··J ...... "'-''''''-'-'-''~. 9 ALPINE pes, Inc. AT&T Wireless • 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 .-..-...1:_ ...... IQI I, .!:~~~------ .~o- ~ ~...,,_w~~ ..___ ~.,(;~; ...... '" ,:"/"~<,\:,,: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 --"It' 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 ~~~~ ~••-..~ -·11- "'.....:.........'W""......-............."t I 0 l.. .., i I~ .:.-1- J J 'Al!IIICI'U'lI'C -I ....~..,. lAo , I I --~ ,(.L.~;CJ(.6C.Oe...< /, 3L.l. ; .. t.. .. 9... ~/ ~ ( ~a,~~~~:~~ / :J;'.....~~~v':'"V\:""':V~~~: ... "'"-. .f ~~.~......~"V'• v'":~.;; "'.~ ..-...."... i ~ ,~,="""",.;"/":'",,,""/:'>.~rv""'J-v·,,:/-",.J V"'\:- ••/ ....,.;-"";-'V.A.4:." . ..··,........'v~ ..""""'''v,.,,_·''''V''\...,··... ' ...''../v-.·../·... '~/''-· ::"':;:~~x~~~::::~~/~~ _......"'·-v........~~................·~~,"'V"',.,.....,""""'"-/' 'Pr~p(ri~t~rY Lucent Technologies • A C A '> CC -, 00<, AlpinePCS 02/0812000 LSS . .. : . ;. .,~ ·'·-··:c :~::.lL -' L :.... ,.. ;~'.;.: ,i:. ," _...._1 Evolving cdmaOne Networks to LucenIT~~~~:~ 0 cdma2000 (3G) Spectrum Limited Scenario Spectrum Cleared Additional spectrum Microcells deployed for 3G services deployed (-1.5MHz) for first cleared for additional additional capacity, highways, with cdma2000 Radios' cdmaOne carrier cdmaOne carriers and/or inbuilding services utilizing same (1.25Mhz) spectrum·as existing cdmaOne carri~rs /(' I ( I ii,.- .' A _""'",:"~--'V"-----~"-~'--""""'~..-...:,'"":"V .... ~,_·..,v..." ~ .~~ v ...·"":'V':"V"v"V..·..,,...;r;./~~v.-....;./'"'tI~· ~;'"~~t.~~~~:::;~~~~'':~ . • r~.·..~,....1-·.~',..:./.v.,,'''w·'''·'V''-/.. ..;/vv-.
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