CONFIDENTIAL Seprtember2014 Contacts John Vislosky Senior Vice President Access Spectrum, LLC 2 Bethesda Metro Center Suite 300 Bethesda, MD 20814 (O) 301-941-1110 (C) 240-507-8816 (E) John.Vislosky@ AccessSpectrum.com TRANSACTION OVERVIEW Access Spectrum, LLC is the license holder of 1 MHz paired (2 MHz total) of Upper 700 MHz A Block spectrum licensed by the FCC. These 28 licenses cover 48% of the population of the United States representing a total of 143 million POPs/286 million MHz POPs. As shown in the map below, this licensed spectrum covers primarily the central portion of the USA, Southern California, Texas, the Gulf of Mexico and Alaska. Access Spectrum will sell its licenses (shown in grey below) together or individually and will consider selling portions of the licenses. It should be noted that the rest of the country is primarily licensed to Beach Point Capital (in white below) and Columbia Capital (in yellow below) which holds the Washington DC license. Moreover, all three licensee are interested in selling their licenses nation-wide. The spectrum is located between 757.0 and 758.0 MHz and between 787.0 and 788.0 MHz and has excellent propagation characteristics. Maximum downlink power is 1000 Watts ERP at 1000 feet, and maximum uplink power is 30 Watts ERP. Maximum out of band emissions limits of 43 +10log P dB apply to the A Block and the adjacent 11 x 11 MHz upper 700 MHz C Block where Verizon operates a nearly nationwide 10 MHz paired LTE network. Additionally, the Part 27 Rules for the A Block allow a maximum antenna height of 1000 Feet. The A Block is also protected from interference from the adjacent public safety broadband channels at 758-768 MHz and 788-798 MHz. These frequencies were granted to FirstNet which Congress established to construct a national first responder LTE network. Funding for FirstNet is limited and planning has been very slow to date. The A Block spectrum can be used for a broad range of applications including but not limited to mobile or fixed data, voice, video, and cellular. Networks may employ point-topoint, point-multipoint (tall site) and/or cellular structures. Potential users include utilities and other critical infrastructure industries, innovative wireless and entertainment operators and machine to machine (Internet of Things) networks. The licenses are valid through July 2019 when they will be renewed for a low administrative fee by the FCC provided that the license holder can show they meet the FCC’s “Substantial Service” guidelines which require limited use of the licenses (therefore- No Standard Build out Requirement). Major Economic Area* FCC Licenses Held by Access Spectrum, LLC Buffalo Memphis-Jackson Omaha Atlanta New Orleans-Baton Rouge Wichita Milwaukee Little Rock Tulsa Minneapolis - St Paul Kansas City Oklahoma City Des Moines-Quad Cities St Louis San Antonio Louisville-Lexington-Evansville Houston El Paso-Albuquerque Birmingham Dallas-Fort Worth Phoenix Nashville Denver Spokane-Billings Salt Lake City Los Angeles-San Diego Alaska Gulf of Mexico *In this band, FCC MEA licensed areas include large areas surrounding the named cities, For example, the Los Angeles MEA includes portions of Southern California and Arizona. There are 52 FCC MEAs in total. Pt-Multipoint and Pt-Pt Wireless Equipment for this band is made by Full Spectrum: http://www.fullspectrumnet.com/ and ConVergence Technologies http://www.converge-tech.com . Other manufacturers are considering modifying their existing lines of equipment to make use of this band. This includes equipment operating in Frequency-division duplexing (FDD) as well as Timedivision duplexing (TDD). FCC Authorizations MEA 3 8 17 20 21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 44 47 52 Market Buffalo Atlanta Milwaukee Minneapolis-St. Paul Des Moines-Quad Cities Louisville-Lexington-Evansvill Birmingham Nashville Memphis-Jackson New Orleans-Baton Rouge Little Rock Kansas City St. Louis Houston Dallas-Fort Worth Denver Omaha Wichita Tulsa Oklahoma City San Antonio El Paso-Albuquerque Phoenix Spokane-Billings Salt Lake City Los Angeles-San Diego Alaska Gulf of Mexico Total 2013 Population 2013 MHz-pops 1,454,672 11,160,193 5,322,030 7,347,230 3,037,268 4,645,728 3,694,745 2,965,282 4,348,588 5,060,526 2,959,568 3,503,664 5,114,563 8,378,758 14,283,401 6,027,343 1,930,448 1,217,494 1,499,470 2,099,823 4,710,639 2,953,560 6,211,009 2,252,002 4,002,731 26,029,072 735,132 0 2,909,344 22,320,386 10,644,060 14,694,460 6,074,536 9,291,456 7,389,490 5,930,564 8,697,176 10,121,052 5,919,136 7,007,328 10,229,126 16,757,516 28,566,802 12,054,686 3,860,896 2,434,988 2,998,940 4,199,646 9,421,278 5,907,120 12,422,018 4,504,004 8,005,462 52,058,144 1,470,264 0 142,944,939 285,889,878 Licensee Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access Access 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC 700, LLC
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