Optus Networks Perspective Wireless Spectrum Strategies 2006

1. Optus Networks PerspectiveWireless Spectrum Strategies 2006 Peter FERRIS General Manager, Technology and Planning 2 March 2006

2. Future Spectrum Needs • Wireless Access • 2G & 3G • WiFi & WiMAX (+ proprietary versions eg. iBurst) • Satellite • Mobile Television • Multi-media Broadcast / Multicast Service (MBMS) • Digital Video Broadcast – Handheld (DVB-H) • Digital Audio Broadcasting (DAB) • Digital Multimedia Broadcast - Terrestrial (DMB-T) • Satellite Digital Multimedia Broadcasting Satellite (DMB-S) • Terrestrial Integrated Services Digital Broadcasting (ISDB-T) • QUALCOMM – MediaFLO • Satellite Digital Multimedia Broadcasting (S-DMB) • Terrestrial Digital Multimedia Broadcasting (T-DMB)

3. The current Australian licensing regime Spectrum Licences are auctioned and allow operation of a band over a geographic area This is a requirement for Carriers because it is simple, gives certainty to spectrum availability and provides a solid foundation for network planning. This also ensures that the Quality of Service requirements that are expected by Customers can be met without issues arising from interference in the spectrum. The licences are tradeable. Apparatus Licences are issued on a per site basis These allow for point to multipoint services subject to a fairly complex and restrictive set of legislation. Apparatus licences are generally not suitable for a national network because it is difficult or impossible to establish ubiquitous coverage on a site by site basis. New licences must not interfere with existing licences. They are in general issued for no more than five years, and can usually be renewed beyond that however this is not guaranteed. Class LicenceUsers of class licensed spectrum have no protection from interference from other users other than changing frequency. It is expected that class licensed spectrum can be used successfully for broadband wireless in regional and rural areas in the medium term. In the longer term the viability of this type of license to provide sufficient quality of service to reliably deliver telephony service is in doubt. It is expected that more users of this equipment will come on line and there will be substantial interference especially in metropolitan areas.

4. Class DRCS WiFi BWA Apparatus CDMA 2G 3G BWA Spectrum Licence 3G-TDD Austar 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 Spectrum map

5. CDMA 800 GSM 900 Spectrum + Syd Mel Bris Perth Adel Elsewhere Telstra 50MHz AAPT 0 0 20 20 20 10 MHz Hutchison 20 20 0 0 0 0 Telstra 20 20 20 20 20 30

6. 2G Spectrum ownership Telstra Telstra Regional Telstra Voda OneTel OPTUS Telstra Voda OneTel Hutch Telstra Voda OneTel OPTUS Telstra Voda OneTel Hutch Metro 1700 1750 1800 1850 1900 No unallocated spectrum but One.Tel still has 2x15MHz

7. 3G Spectrum ownership Regional FDD Telstra Voda Metro FDD OPTUS Hutch 3G Investments Metro TDD 1900 1950 2000 2050 2100 2150 No unallocated spectrum but 3G Investments (Qualcomm) still has 2x10MHz

8. WBB 2.3GHz Spectrum Unwired 98 MHz Austar 98 MHz

9. 3.4 GHz Licences Unwired 65 MHz Unwired 35 MHz Telstra 35 MHz Telstra Apparatus Licence (100’s of these)

10. WBB 3.5GHz Spectrum 125 MHz has been embargoed and is expected to be put up for auction (no date yet) Austar 65MHz Unwired 100MHz Telstra 35MHz Guard band Embargo 125MHz Brisbane has 17.5 MHz free here and 3.5 MHz free here

11. 802.11a at 5 GHz • Between 5.15 and 5.35 GHz • Indoor use only • 200mW EIRP • Between 5.725 and 5.85 GHz • 4W EIRP 802.11a 802.11a DECT Class Licence Class Licence 5100 5200 5300 5400 5500 5600 5700 5800

12. 802.11b and 802.11g Licensing • Licensed under Radiocommunications (Low Interference Potential Devices) Class Licence 2000 • Fixed use only • 4W EIRP Radiocommunications (Low Interference Potential Devices) Class Licence 2000 2400 2420 2440 2480 2500 MHz 2460

13. WiMAX Frequency Bands

14. Regulatory Frameworks • Public Park – Spectrum Commons • Class Licences • PAN & LAN deployments • Site Based – Command & Control • Apparatus Licence • Primarily point to point deployments • Not suitable for national WAS deployment, short duration • Area Based – Private Spectrum • Spectrum Licence (national / major area, long term) • Commercial WAS with QoS guarantee • Private Park – Carriers doing the regulators job ? • Commercial service QoS problems, cannot support primary line voice • First in, best service – more competition, less service • Prime, Low density / Remote, Remote – all competing out of the Cities

15. Optus Position • Protection of Existing Investments • Commercial WAS with QoS guarantee to existing Customers • Extensive existing investment terms to provide commercial return • Protection of International Satellite Links • Coordination of frequencies internationally • Adherence to ITU standards • Commercial Viability of Equipment • Provision of Scale by adhering to ITU standards in Worldwide Markets for both network and customer equipment • Customers Expectation of Roaming • Customers expect services (and CPE / Terminal Equipment) to operate nationally and internationally • Commercial Viability of Future Spectrum Investments • Requirement to provide a commercial return for specific Customer services • Investment to provide known commercial return for practical market penetration