“In the integrity and independence of the
enlightened individual lies the hope of the nation”
A.J Fletcher
Founder Capitol Broadcasting Company
CBC Proprietary & Confidential
National Broadband Plan
Spur Innovation
More broadband access
Faster speeds
Connect rural America
Create more competition
Better prices
CBC Proprietary & Confidential
“Spectrum Crisis”
Numbers
Cisco forecasts mobile video will account for
52.8% of all mobile data traffic in 2011.
Mobile video will more than double every year
between 2010 and 2015.
Mobile video will account for 66% of all mobile
data traffic by 2014.
CBC Proprietary & Confidential
Cisco -- Visual Networking Index
Current Broadband Plan
The Economic Side
1) Reduces competition/expands power of “4 gatekeepers”
2) Creates an environment where the Government is picking
winners and losers
3) Harms tens of millions of Americans who utilize OTA on
one or more TV’s
4) Most Importantly – Short changes by billions spectrum
value $$$
– Allows time for demand side to outgrow supply side
– Creates a truly open and free market auction for 120 MHZ
CBC Proprietary & Confidential
Not Good
Just four (4)
companies
control over
90% of all
mobile
connectivity in
the United
States.
CBC Proprietary & Confidential
Chetan Sharma Consulting
Current Broadband Plan
The Spectrum Side
1) Provides a short term solution to a long term problem
1) Does not fix the problem – it puts a band aid on it
2) Creates a 10 year revolving door spectrum crisis
3) Handcuffs our country in competition with other countries addressing the problem appropriately
“Mobile data traffic is projected to increase 35X in the
next few years, ten times faster than the rate of
increase in spectrum coming online for mobile
broadband”
Chairman Julius Genachowski
Federal Communications Commission
NARUC (National Association of Regulatory Utilities Commissions) Annual Meeting
Atlanta, GA
November 15, 2010
CBC Proprietary & Confidential
Current Broadband Plan
The Spectrum Side (Continued)
2) Fails to identify and utilize fallow spectrum
3) Misses complementary aspects of broadcast and broadband
for spectrum maximization
4) Does not contemplate international harmonization
5) It does not address mobile video as primary demand driver
6) Does not identify how local spectrum will remain local
7) Most Importantly – Does not leverage established broadcast
infrastructure to help solve problem
CBC Proprietary & Confidential
Current Broadband Plan
The Regulatory Side
1)Does not contemplate a flexible broadcast
architecture for the future
2)Does not address double standard of “broadcast
straightjacket” vs. wireless service providers
3)Fails to identify real world harm of “involuntary
repacking”
4)Most Importantly: Does not address broadcast
industry innovation
CBC Proprietary & Confidential
Current Broadband Plan
The new Verizon logo clearly states the end game…
CBC Proprietary & Confidential
Broadcasting As Part
of the “Spectrum
Crisis” Solution
CBC Proprietary & Confidential
Mobile Networks Are One-to-One
CBC Proprietary & Confidential
240 Users Per 4G Transmitter
4G
Assumes no voice or other data
usage on the network.
CBC Proprietary & Confidential
10Mbps per sector with 3 sectors per transmitter
30 Mbps total and 384 Kbps video bit rate
NIST LTE Smart Grid 5Mhz Up and 5Mhz Down
Configuration
Raleigh-Durham Market – 2.78 Million People
CBC Proprietary & Confidential
Everyone Can Connect
CBC Proprietary & Confidential
Raleigh-Durham Market Ratio - 11,583
:1
CBC Proprietary & Confidential
Don’t Take Our Word
“We’re working with all of our infrastructure
providers…to develop the technology to
incorporate a broadcast capability. We think
that will be a solution to this problem down the
road…”
Tony Melone, CTO, Verizon Wireless
CBC Proprietary & Confidential
Open Mobile Summit – November 2010
A Better Broadband Plan
CBC Proprietary & Confidential
The CBC Plan – Step 1
Timetable: Year 1
•
Launch Spectrum Inventory Analysis
•
Launch Cross Industry Working Group
–
Identify immediate opportunities to offload wireless
broadband bandwidth overload to broadcasters utilizing
the current mDTV technology
–
Develop and implement broadcast and wireless
broadband technology convergent evolution path
Convergent Evolution: a process by which unrelated organisms independently
acquire similar characteristics while evolving in separate ecosystems
CBC Proprietary & Confidential
The CBC Plan – Step 2
Timetable: Years 2 - 4
• Broadcast Technology Evolution
– OFDM based system
•
Eliminates adjacent channel interference problems!
•
Enables 30Mbps-40Mbps throughput (vs. 19.4Mbps)
•
Enables SFN layout for wireless broadband offload
•
Fixed/Mobile integrated chipsets
•
Built on software upgradable standards (LTE)
•
Broadcast, Fixed, Mobile, VOD, Datacast
CBC Proprietary & Confidential
Broadcast Evolution enables collaborative
systems that shift content on the fly between
broadcast and wireless broadband/unicast
CBC Proprietary & Confidential
The CBC Plan – Step 3
Timetable: Years 2 - 5
• FCC Holds 380 MHZ of Spectrum Auction
– Broadcast spectrum not included
– 5 year timeline for 330 MHZ met
CBC Proprietary & Confidential
The CBC Plan – Step 4
Timetable: Years 5-10 Years
• Broadcast Technology Evolution Launched
• Broadcast Stations Repack
• FCC Holds 120MHZ Incentive Auction
– Locally based spectrum licenses only
– Higher value created with multiple bidders as you
have created an opportunity for both local and
national players
CBC Proprietary & Confidential
The CBC Plan – Notes
• Public Interest Obligations Should Be Clear
– Net neutrality on services we provide
– Homeland Security and First Responders priority
channels are established
• 5% Ancillary and Supplementary
– Government earns revenue from all of the
additional services = billions in revenue
CBC Proprietary & Confidential
CBC Amended Broadband
Plan
• Meets the 10 Year/500 MHZ goal
• Lowers capital outlay of wireless service
providers = lower consumer prices
• Spurs competition by significantly lowering
cost of entry
• Does not harm – actually HELPS – Over The
Air viewers
CBC Proprietary & Confidential
CBC Amended Broadband
Plan
• Creates the path to solve the spectrum problem long
term
• Drives maximum efficiency of broadcast spectrum band
• Creates a complimentary broadcast and broadband
architecture vs. duplicate
• Addresses mobile video as primary spectrum crisis
driver and utilizes the most established and efficient
technology (broadcast) to solve problem
CBC Proprietary & Confidential
CBC Amended Broadband
Plan
• Identifies broadcasting as part of the future
• Creates new innovation opportunities for local
broadcasters
• It helps broadcasting versus harming it
• Maximizes the value of the spectrum
– Allows time for demand side to outgrow supply side
– Creates a truly open and free market auction for 120 MHZ
CBC Proprietary & Confidential
Discussion
CBC Proprietary & Confidential