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					                                       1

       STATE OF CONNECTICUT

          SITING COUNCIL




        CELLULAR SYMPOSIUM

RE: CELLULAR/PCS TECHNOLOGY OVERVIEW

           MARCH 2, 2006

            (9:15 A.M.)




THE BUSHNELL PERFORMING ARTS CENTER

       HARTFORD, CONNECTICUT




         POST REPORTING SERVICE
       HAMDEN, CT (800) 262-4102
                                                                   2
              RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                          MARCH 2, 2006

 1                   . . . proceedings of a Cellular Symposium

 2   held by the State of Connecticut Siting Council at the

 3   Bushnell Performing Arts Center on March 2, 2006.

 4

 5

 6

 7                   CHAIRMAN PAMELA B. KATZ:    At this point
 8   I’d like to introduce our first speaker.    Our first

 9   speaker this morning is Chris Fagas and he is an RF

10   engineer and manager for National Grid Comm and -- that

11   provides infrastructure solutions to the cellular and the

12   PCS industry.

13                   Prior to joining National Grid Comm

14   Wireless, Chris had extensive experience in several RF

15   engineering roles with AT&T Wireless, Nextel

16   Communications, and as an independent RF consultant.     He

17   has dedicated the past dozen years in his career to

18   improving the customer experience of cellular and PCS

19   subscribers in the New England and New York region.

20                   Chris is a Rhode Island resident and a

21   graduate of the University of Rhode Island and a member

22   of the Institute of Electrical and Electronic Engineers

23   and its Antenna and Propagation Society, the Radio Club

24   of America, the American Radio Relay League, and the


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                                                                 3
                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   Quarter Century Wireless Association.    Please welcome

 2   Chris Fagas.

 3                   (Applause)

 4                   MR. CHRISTOPHER FAGAS:   Thank you and good

 5   morning.

 6                   What I’d like to start off with is a

 7   presentation and I’ll try to make it as succinct as
 8   possible to get us grounded in where we are today, how we

 9   got here, and a little insight maybe into where we’re

10   going.

11                   Well first of all, the radio frequency

12   spectrum that we use in the cellular and PCS area comes

13   to us from the UHF television area, where back in the

14   early 1980’s it was decided that an expanded role for

15   mobile communications was necessary and some UHF TV

16   channels, which were seldom used because they had poor

17   propagation characteristics, needed to be migrated over

18   to the cellular and PCS area.   Channels 14 to 83 cover a

19   frequency range of 470 to 890 megahertz.   So that’s what

20   the UHF TV spectrum looks like.   The upper channels from

21   806 to 894 megahertz, channels 70 to 83, no longer exist

22   on your TV sets as they were reallocated for the

23   development of cellular and the SMR bands.

24                   Now in those-- in that 800-megahertz band


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               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   you have cellular A band and cellular B band.    And

 2   inserted between them is the specialized mobile radio

 3   band.   That’s a traditional two-way type of a band that

 4   through Nextel Communications was changed to simulate

 5   more of the cellular type of coverage where coverage was

 6   handled in a different manner than the traditional two-

 7   way type coverage.   The A and the B band have changed
 8   very little since their inception.   The SMR band has

 9   changed quite a bit because of the change in the usage in

10   that band.    In fact, the commission was very active in

11   making sure that transition was as smooth as possible for

12   public safety, commercial and industrial interests using

13   that band.

14                    Later, after the success of the 800-

15   megahertz band, it was decided that more spectrum was

16   needed and there needed to be more participants to be

17   able to provide mobile connectivity to users.    And the

18   PCS band was allocated the 1850 to 1990-megahertz band,

19   which was prior to that used for individual point-to-

20   point links.    So they went from individual licenses to

21   auction for the private sector to develop more mobile

22   phone networks to continue this mobile phone success

23   phenomenon.

24                    Now to understand where we go with


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               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   cellular, we need to start really with what we have in

 2   the way of single control site technology where you had

 3   one, possibly two large sites that were connected to a

 4   mobile operator.   And this is in the early days when if

 5   you wanted to make a phone call from your two-way radio

 6   system or mobile phone system, you would get connected

 7   through the mobile operator, much like you would use the
 8   Coast Guard operator and things like that to make a

 9   call, where you would actually get connected into the

10   network through a person.   Of course this is going back

11   now into the early days.    So you had one large site that

12   covered a large geographic area.    And at that point your

13   one large site was really limited in terms of capacity

14   because   once it started to get loaded up with users, you

15   needed to find another way to carry more calls on that

16   site.

17                   So the next step became the real cellular

18   application.   And of course, you know, in the -- in the

19   mid 80’s it was all experimental.   And by the late 80’s,

20   1989 in fact, Dr. William C.Y. Lee had published a book

21   that was all of -- you know, the engineers that had come

22   into the industry at that time, that was the bible we all

23   used for an engineering book, was his book, and that was

24   the cellular concept.   And the concept here was rather


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   than having the one big site, to have this relatively

 2   seamless -- of course, you know, this is on a piece of

 3   paper and not in the real world with all of the other

 4   issues that are out there -- but effectively, for any

 5   sports fans, a zone defense so that the defenders could

 6   follow the ball through the area.

 7                   Now, the handoff is a part of this zone
 8   defense.   There needs to be a way since the call is up,

 9   to actually handle a call and transfer the call from site

10   to site.   Now, each of the different cells, looking at

11   this three-cell concept where the calls are going into

12   the switching center and then back out to the public

13   switch telephone network, not through an operator now but

14   automated and directly connected, they need to be on

15   different frequencies or sets of frequencies.     So that

16   enters now the concept of frequency planning because

17   there are only so many frequencies that a carrier has,

18   and, thus, those frequencies need to be planned.    They’re

19   a precious resource.

20                   In this case I’m showing a seven-cell

21   cluster.   And if I made the assumption that each cell has

22   10 frequencies on it, that would be 70 frequencies that

23   would be used in that pattern.   Now of course you’re

24   going to run out of frequencies because as you add cells,


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   you need more frequencies.    So the next step is to now

 2   reuse those frequencies between clusters.   And so you’d

 3   reuse frequencies in the same exact pattern that you

 4   established for that original cluster to try to maintain

 5   the same spacing so that there won’t be co-channel

 6   interference between users on the same channel.

 7                   Now as you look at the base station for
 8   the sites, there’s different types of base stations out

 9   there.   And one of the things that determines the type of

10   base station you’d deploy is what type of coverage you

11   need; if you need omni-directional coverage, coverage

12   that covers a 360-degree area; or if you need more

13   capacity on that site, and maybe you’d break that site up

14   into three 120-degree sectors to cover the same 360

15   degrees.   And that’s just a matter of how much equipment

16   you put into the cell site.

17                   In a rural application in the early days,

18   everybody used omni sites, that was the standard.    Now

19   really in only the most rural areas that -- that’s the

20   only place really where you’ll see an omni site.

21   Everybody is using sectored sites now because they also,

22   in addition to having the capacity increase, allow you to

23   administer a better frequency plan, we talked about the

24   frequency reuse, because you’d break that sector up and


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                                                                     8
              RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                          MARCH 2, 2006

 1   only have frequencies within that looking in three

 2   different ways.

 3                     What I’ve shown here is two pictures of

 4   possible base stations.    One is -- the one on the left is

 5   a shelter, an equipment shelter, which is a walk-in

 6   shelter where racks of equipment would be installed.       It

 7   would be climate controlled.    And some carriers use that.
 8   It has a tremendous amount of capacity, particularly

 9   carriers that have a legacy of having different eras of

10   equipment where they need to support users that are still

11   on older technology as they migrate towards newer

12   technologies.

13                     And then on the right the smaller cabinet

14   style base station or base transceiver system, BTS as

15   they’re often referred to, is refrigerator size mounted

16   on a concrete pad outside the technician services from

17   outside by opening doors.    It’s a challenge in weather

18   conditions for the technician as opposed to the shelter

19   where he can go inside and get out of the elements and

20   change cards in the dry.

21                     Antenna technologies are -- from an RF

22   standpoint the antenna is really the tool that the RF

23   engineers have to administer coverage.    We talked about

24   omni versus directional.    The directional antennas you


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                                                                  9
               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   would use for a sectorized site so that they each look

 2   out at that 120-degree slice of the 360-degree coverage

 3   maybe previously given to you by an omni site.

 4                   Diversity is an interesting thought.     A

 5   lot of times you look at cell sites and there’s a lot of

 6   antennas for the carrier.   Well one of the reasons is

 7   because -- or a lot of antenna apertures within that
 8   antenna -- is to try to get some diversity gain.   The

 9   need for diversity is one where the users operate in a

10   mobile environment and move around and most of the signal

11   at either end of the path between the user and the cell

12   site is via multi-path.   In other words, it gets there

13   via reflection or alternate path as opposed to the direct

14   path.   So when you get all of this combining of all of

15   these signals together at either end of the link, what

16   you get is a combining of in-phase signals, which is

17   great because you get more signal, but you also get a

18   combining of out-of-phase signals, which actually reduces

19   the amplitude of the level of the signal.   You’ll notice

20   when you’re -- when you’re diving in your car and if you

21   have the single style, you know, whip type antenna on

22   your FM radio in the car and you’re listening to an FM

23   station, sometimes you’ll stop at a traffic light and it

24   will get really scratchy right where you stop, but if you


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   just bump the car forward a foot or two, all of a sudden

 2   it comes in.   Well that’s because in the environment you

 3   have this multi-path signal coming from the station where

 4   you have nulls and peaks based on the in-phase and out-

 5   of-phase combining.   The concept of diversity is to have

 6   multiple antennas so that all of the antennas aren’t in a

 7   fade at the same time.   And those are combined at base
 8   band after the receivers.   They’re very widely used in

 9   all of the technologies today, either used in multiple

10   antennas or individual apertures within the single

11   antenna.

12                   Smart antennas were something I had the

13   opportunity -- oh -- smart antennas were a technology

14   that I had the opportunity to test in New York City.    The

15   conclusion at that point was -- was that they were bulky,

16   they were very large antennas because they needed to have

17   tremendous gain.   The concept was to narrow down a

18   sector, a 120-degree sector into individual beams within

19   that sector.   So to have a narrower beam, they needed to

20   have more aperture and be larger.   They were expensive

21   and they didn’t provide any capacity relief to the cell

22   site.   So they never really gained a lot of traction in

23   terms of deployments.    They sort of created a very high

24   performance for a very few amount of users on the site,


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                                                                 11
               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   and that didn’t seem to be the way to go.

 2                   Shared antennas are another interesting

 3   concept that other than tunnels and buildings where

 4   carriers will combine onto a shared say leaky coax

 5   through a tunnel where every carrier has exactly the same

 6   coverage need in that tunnel, so they all need to be

 7   connected to users that are all the same distance away,
 8   there has been very little traction for shared antennas

 9   outside on towers.   The main reason for that is that all

10   of the carriers have slightly different coverage needs.

11   They’re not all on the same sites.   Some are on different

12   sites than others.   And as a result, what they need that

13   -- what one carrier needs that site to do is maybe

14   slightly different than the next carrier.    So it’s very

15   hard for all of the carriers to commit to one antenna

16   configuration for that site, let alone plan for the

17   future.   You know, it’s a snapshot view of really one

18   carrier -- one carrier’s need, that would come in, you

19   know, looking for a shared antenna system.   So they --

20   they haven’t really gained a lot of traction.

21                   And another type of shared antenna system

22   is a distributed antenna system, which is kind of like

23   the soaker hose analogy to the sprinkler, where instead

24   of having a big sprinkler, you have lots of little


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   signals.   The problem with the distributed antenna, again

 2   it’s very similar to the shared antenna concept, it works

 3   very well in the right surgical solution where all of the

 4   carriers have exactly the same coverage need, but again,

 5   you know, with the shared antennas it doesn’t really take

 6   into account the differences between carriers unless some

 7   carriers don’t go on some of the nodes and some carriers
 8   do go on some of the nodes.

 9                    The distributed antenna system, for

10   anybody that was wondering, the way that works

11   essentially -- and most of the applications outdoors

12   today have been done with existing utility poles with an

13   antenna that’s mounted on the utility pole and an

14   electronics box on those that are just connected by fiber

15   back to a hub site where those base transceiver systems

16   are installed.   But again, like the shared antenna

17   system, it -- it requires the carriers to all have the

18   same type of coverage need and doesn’t allow necessarily

19   the flexibility that they might have if they had their

20   own antennas on a tower and so forth.    So there’s --

21   there’s some differences there as to why those

22   technologies have been slow to gain traction in the

23   changing technology.

24                    Okay.   We talked about antennas.   Well,


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   the antennas need to be effectively in a line of sight

 2   contact with the users depending on where the users are

 3   in the environment as they move around in that zone

 4   defense.   So we need to put the antennas on something

 5   that will allow the users to access them.   And there’s a

 6   number of support structures that are out there.    The

 7   lattice towers or monopoles of course are the most
 8   traditional structures that were used for installations.

 9   And then flagpoles, the tree monopines and monopoles,

10   disguised trees, the brown sticks just like the flagpole

11   that’s brown, are the more stealthy type of methods that

12   were developed for some more sensitive areas.     Of course

13   water tanks, smokestacks, rooftops, all exist out there

14   at fairly high positions and are used and can be used.

15   And steeples and power lines, and as I mentioned

16   transmission distribution, light poles, utility poles

17   could all be used.

18                   The picture on the left is a lattice type

19   tower.   You’ll see the lattice work structure.

20                   The tower on the right is a monopole type

21   tower.   On both you can see multiple levels of carrier

22   antennas, each carrier having their own level for

23   antennas based on their coverage requirement.     In some

24   cases you’ll see that they’re all twisted slightly


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               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   differently.   And that’s because each of the carriers has

 2   their frequency plan working slightly differently and

 3   needs to sectorize the site a little bit differently than

 4   the other carriers.    Again one of the reasons, you know,

 5   why the control of those antennas is needed, to tailor

 6   that cover to fit in best and most efficiently with the

 7   existing coverage that the carrier already has.
 8                   An existing water tank that could be used

 9   for antennas, there’s a couple of sets of antennas on

10   that.   You can see three different sets on that one.

11                   There’s a transmission line, a high

12   voltage line with essentially a small monopole right

13   through the middle of it, something that was already

14   there that could be used for antennas.

15                   The traditional rooftop installation with

16   a number of antennas.    And in fact a -- sort of a chimney

17   smokestack with a painted antennas to try to make it

18   blend in in the existing area.   It requires the artistic

19   construction person.

20                   The flagpole we talked about.

21                   I picked this tree picture because I

22   thought it was a pretty good tree picture.   It’s actually

23   a tree that’s near other big trees so it kind of blends

24   in.   Most of the trees I’ve actually seen in real life


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   don’t really look like that because they’re kind of the

 2   only tree in the area and they’re much bigger than

 3   everything else in the area.    So, I’m not sure that

 4   they’re really that stealth.    In fact, I wonder sometimes

 5   when you see them driving by if your eyes are not more

 6   drawn to them because they’re so artificial looking where

 7   they are than if they were just a plain old galvanized
 8   gray tower you’d never even notice.

 9                    This is what two DAS nodes look like.    You

10   know, obviously these distributed antenna system

11   networks require a number of nodes to replicate wider

12   area coverage.   The one on the left is actually in

13   Nantucket and in a very I’ll say seaside recreational

14   type of an area.   The one on the right is in a more

15   commercial area -- commercial/residential area in Malden,

16   Massachusetts.

17                    Okay.   The -- the handsets.   We’ve seen

18   the handsets change an awful lot since we started with

19   this technology.   In the early days there wasn’t a

20   handset.   It was a big mobile radio that mounted under

21   the seat or someplace in the car and there was a clip

22   that you put the handset with coily cord on the dashboard

23   or on the hump of the car, and when you picked it up and

24   held it, it was connected by the coily cord to the


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              RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                          MARCH 2, 2006

 1   transceiver that was connected to the car battery and it

 2   had an antenna drilled -- usually drilled through the

 3   roof of the car, although some of them had them that

 4   applied to the window of the car and transferred the

 5   signal through the window.   So that’s where it started.

 6   Clearly, it was a higher power, higher performance type

 7   of user unit so that cell site need wasn’t so great.
 8   Also there weren’t that many users.    We went to a -- and

 9   I remember certainly in the early 90’s the portable

10   phone, it looked like the G.I. Joe phone.   You know, it

11   was -- it was -- we called them the brick phone.     And in

12   fact, I was building a number of cell sites in New York

13   City at the time and I always felt safe because I had

14   that phone with me and I wasn’t sure if it was more of a

15   protection device or a communication device.

16                   But the portable really caught on.    Of

17   course the bag phone was kind of the intermediate thing,

18   but the portable really caught on and in fact was much

19   lower power so it now required a larger infrastructure to

20   support it.   There were more users.   The user growth had

21   come in and so now the sites have to each have more

22   capacity and so forth.   As they went to lower and lower

23   power, smaller and smaller phones, users wanting more and

24   more battery life -- battery life can be helped somewhat


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   by power control.   The handsets power down when they get

 2   closer to the site, that makes your battery last longer.

 3   But nevertheless, when they’re at the perimeter of the

 4   cell, they’re at maximum power and they’re using up

 5   battery.   So lower power is the way everything is going

 6   because people want it to last all day and they want to

 7   use it more now.    Initially people carried it only -- if
 8   it was an emergency, they would use it.     Now people use

 9   it quite regularly.      In fact sometimes you see people on

10   the phone all the time, on the cell phone.     So it’s --

11   the usage is there and it’s increasing.

12                    The subscriber base has been a huge

13   success.   These are -- I’ll call these approximate

14   numbers because they’re moving targets all the time, but

15   I found these were CTI supported numbers where 85, 86 --

16   you started off with zero -- I put zero, I mean a couple

17   of thousand subscribers.     In 1994 in the U.S. we were

18   already up to 16 million subscribers.     By now we’re at

19   195 million U.S. subscribers.     You need to remember that

20   there’s 300 million people in this country, which means

21   that there’s 105 million more people that can have

22   phones.    (Laughter).

23                    One thing that the subscriber numbers

24   don’t really show is that people use the phones more now


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              RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                          MARCH 2, 2006

 1   than they used them before.      Initially people bought

 2   them, put them in the glove box of the car in case they

 3   got stranded and got a flat tire and didn’t use it for

 4   months on end.    Now even people that bought them for that

 5   purpose are using them more and more.      So the subscriber

 6   numbers don’t really show the increase in usage that the

 7   networks have to support.
 8                     Worldwide --there’s 1.6 billion worldwide

 9   subscribers.   In the world there’s around six and a half

10   billion people.    So we’ve got better penetration in the

11   U.S. than the rest of the world.      These market share

12   numbers, again they’re rough numbers, you know, from when

13   they were taken; just over 30 percent Cingular Wireless,

14   just a hair under 30 percent Verizon Wireless,

15   Sprint/Nextel just under that, and T-Mobile with a

16   respective share of the market.

17                     Okay.    As capacity increases, you need to

18   put more radios into cell sites.      Eventually, you reach a

19   limit, you can’t put any more radios into the cell site

20   either for frequency planning reasons or for just

21   technology reasons.       You can’t combine any more, the

22   losses are too high.      As the losses get high, the

23   coverage shrinks.    So what you need to do at that point

24   is start thinking about intermediate cells or we call it


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               RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                           MARCH 2, 2006

 1   cell splitting.    Effectively if you had three cells

 2   spaced in a homogeneous manner, they all had the same

 3   traffic that was on them, they were all starting to get

 4   overloaded, you would drop a fourth cell equally between

 5   them to try to shed some of that traffic off of the three

 6   surrounding cells.    We’ve see, you know, that phenomenon

 7   happen and continue to happen.
 8                     Micro and pico cells are very useful

 9   technologies in dense areas or even in hot spots, in

10   areas that aren’t as dense.    Say for instance there’s a

11   big toll plaza where there’s a big tie up all the time,

12   every day there’s a huge tie up there, it would make a

13   lot of sense to just put a small cell site right there

14   just to service that small area and take that off the

15   surrounding sites.    So that’s sometimes a usage for the

16   micro and pico sites.    Also when you get into, you know,

17   a heavy metropolitan area here in Hartford, you have many

18   many sites.   Because there are so many users, you need to

19   make the sites smaller and smaller to handle an

20   appropriate number of users.

21                     Satellite, everybody always talks about

22   it.   It’s not a big a success mainly because of the

23   capacity issues.    I mean, you know, the -- Iridium was

24   one of the ones that was launched a number of years ago.


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              RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                          MARCH 2, 2006

 1   Iridium is an element with 77 free electrons and -- so

 2   that how the name iridium came.    They were going to put

 3   77 low earth orbiting satellites, so it looked kind of

 4   like an atom.   But -- after budget cuts, actually it got

 5   cut to 66 satellites, but they never went back and

 6   changed the atomic name to the one with 66 electrons -- I

 7   think it’s dysprosium -- (laughter) -- but nevertheless,
 8   the government wound up having to take that over.    There

 9   were -- really the issues with that, if you think about

10   it, because they’re trying to cover the world with 66

11   cell sites.   Today no carrier could cover the island of

12   Manhattan with 66 cell sites.   And that’s one carrier,

13   let alone the world.   So it’s -- it was a technology that

14   only worked if you were out in the Gobi Desert someplace

15   and there was nothing around.   In fact, most people that

16   bought the satellite phones, when they actually used it

17   for the first time, they made a call on the cell site

18   down the street that was the regular cell site that was

19   there because they didn’t have any real capacity and they

20   had to use the local cell sites.   So that was a

21   technology that due to the expense of it and due to the

22   nature of getting capacity out to the cell sites -- you

23   can’t run, you know, backhaul lines up to the cell sites,

24   you have to microwave them back and, you know, at


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   different frequencies, it’s -- it’s all very complex and

 2   never really worked out.    And certainly wouldn’t have

 3   kept pace with the growth that we’ve seen in mobile

 4   subscribers.

 5                   Cell splitting, you can see in this

 6   example the cell splitting.   We started off with that

 7   zone defense, that structure of cells, and in between we
 8   put some smaller cells, and then even smaller cells as

 9   we got to the urban area.   That’s the logical growth.

10                   In addition to cell splitting to try to

11   get capacity, one of the tools that was developed to

12   develop capacity was the migration from analogue to

13   digital.   In the early days everything was on an analogue

14   channel.   An analogue channel meant one user used one

15   channel.   I remember migrating channels from a frequency

16   planning standpoint and from a network engineering

17   standpoint off of analogue and putting them on digital to

18   get more efficiency, to be able to put more users on that

19   channel.   We always referred to the analogue channels as

20   the spectrum hogs because they -- they were so limited in

21   what they could support in the way of calls and for

22   users.

23                   The two real overlays on digital that

24   allow this capacity improvement are TDMA and CDMA.    TDMA


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                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   being time division multiple access, kind of if you think

 2   of it as a pizza pie with -- you know, you already ran

 3   the roller on and it’s got slices spinning around and

 4   everybody is one timeslot, as they come around their

 5   timeslot comes up every period of time, whatever it is,

 6   some unit of a second of time.   So you could put that --

 7   each slice representing a different user, you put all of
 8   them on the same channel at the some time.   CDMA, the

 9   users all have a different code.   They’re all on at the

10   same time, but they all can be digitally separated by

11   their digital coding as opposed to the time slot that

12   they’re on.

13                    And emerging technologies as we go into

14   the next generation are going to be, you know, e-mail

15   video.    People are going to want to surf the web on their

16   phones.   Things that require greater band width, which

17   equate to more capacity, more throughput through the

18   network, more uptime.    And that -- that’s -- that’s the

19   way technology is moving, they’re getting smaller and

20   more and more capable.

21                    So, my conclusions are that the demand for

22   mobile connectivity will probably continue to grow.    The

23   FCC will probably continue to support this growth with

24   spectrum resources because it’s been so successful to


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                                                                 23
                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   consumers.   New technologies and greater usage will

 2   probably increase the need for additional infrastructure

 3   in the future.

 4                    So with that, I’ll open it up to

 5   questions.   And have I got back to the schedule?

 6                    (QUESTION FROM THE COUNCIL)

 7                    MR. FAGAS:   I think -- you know, the
 8   satellite solution is really -- oh, the question was is

 9   there any solution that would involve satellite and what

10   would the time frame be for that?

11                    And -- and my opinion on it is -- is that

12   the satellite solution is one for the remotest areas that

13   have no real chance of any other coverage, but that none

14   of the carriers -- that the subscribers -- the main body

15   of subscribers that are here in the United States today

16   really subscribe to.   The carriers aren’t thinking in

17   terms of putting up satellites to deliver signal to these

18   areas mainly because it’s an expensive solution that

19   doesn’t deliver enough capacity.    It would be out-paced

20   faster than it could be put in place.    It takes so long

21   to get everything engineered to go onto, you know, a

22   booster and get delivered to the right orbit and -- it’s

23   very very complex administration of technology to really

24   do that.   So, I -- I don’t think that other than an


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                                                                24
                 RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                             MARCH 2, 2006

 1   extremely remote area where, you know, somebody is out in

 2   a place where there’s no civilization, so there’s no

 3   chance of building any kind of traditional structure,

 4   there will be any real traction for the satellite

 5   business.

 6                    MR. FAGAS:   Any other -- please.

 7                    (QUESTION FROM THE COUNCIL)
 8                    MR. FAGAS:   Okay, the question is what

 9   types of competing uses are there that would limit the

10   amount of spectrum that are available for these different

11   mobile technologies, which -- I mean certainly in the

12   800-megahertz band in the spectrum that some of the

13   carriers operate in, that Sprint/Nextel operates in,

14   there are public safety spectrum needs, industrial two-

15   way communication needs still that are out there, and

16   commercial two-way communication needs that are out there

17   on existing networks.    So there are other -- other users

18   that are out there.

19                    There’s going to be a general migration of

20   users around -- some more UHF TV channels that were

21   seldom used in the area just below in kind of the -- I’ll

22   call it the 700 to 800 megahertz, I don’t have the exact

23   frequencies -- but in the next tier down that are seldom

24   used by broadcasters because they have such poor


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                                                                 25
                 RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                             MARCH 2, 2006

 1   propagation characteristics, some of those are now going

 2   to be migrated so that the band plan can change slightly

 3   to support all of the users better, but they’re -- the

 4   competing uses are in that area.     The -- there’s going to

 5   be a need in terms of usage on the existing networks for

 6   more broadband and phones that are capable to be

 7   connected to computers, and phones that maybe even have
 8   computer screens on them and do more -- we’ll call them

 9   broadband oriented functionality within the same

10   spectrum.    So there’s a lot of different competing needs

11   in that spectrum area.

12                    (QUESTION FROM THE COUNCIL)

13                    MR. FAGAS:    I mean I’m -- I certainly

14   can’t see -- the question really was that the VHF TV

15   bands, which take a lot of spectrum and have tremendous

16   coverage capability, there’s rumor that there may be some

17   issue --    or reissuing or reallocating of those bands

18   following the digital and more efficient overlay that’s

19   being put into those bands.     And clearly -- I think we

20   were talking earlier -- 2009 is the hard date for that

21   migration to take place.      My hunch from a mobile

22   subscriber standpoint is that those frequencies are so

23   low, that the propagation characteristics are probably

24   too good and the interference levels would be too high if


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                                                                    26
                RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                            MARCH 2, 2006

 1   you -- if you used those.      But there may be some spectrum

 2   that’s there, particularly for a more rural provider that

 3   needs to get more range between sites with lower capacity

 4   sites.   Mr. Lynch.

 5                     (QUESTION FROM THE COUNCIL)

 6                     MR. FAGAS:   Yeah.   Okay, the question is

 7   as we move into these newer technologies, how do the
 8   companies keep up with the capital expense required to

 9   deliver these new technologies that the consumers are

10   demanding.   Is that a fair restatement?

11                     It’s -- clearly the subscriber growth and

12   the usage in the growth is being called on in terms of

13   the revenue that’s derived from that to support all of

14   this expansion.    The -- the carriers have huge

15   infrastructure requirements and huge expenses and they

16   need to make their model more efficient and yet at the

17   same time there’s only so many customers out there and

18   the customers, you know, need to not pay too high a

19   price because there’s a competitive interest that’s

20   involved. So it’s -- it’s a very complex question.      I’m

21   not sure I have the real answer of where the money is

22   coming from other than more users I think using the

23   product more, generating more minutes and generating more

24   revenue.


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                 RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                             MARCH 2, 2006

 1                    (QUESTION FROM THE COUNCIL)

 2                    MR. FAGAS:    Yeah, the follow-up question

 3   is might there be more mergers in the future so that they

 4   can compete better?

 5                    And I think -- you know, we’ve seen -- you

 6   know, before when we were looking at that chart, there

 7   were a lot of names that were there that were, you know,
 8   kind of joined names, you know, the Cingular -- you know,

 9   I didn’t have it up there, but AT&T Wireless was -- is a

10   part of Cingular now, and Sprint and Nextel are now

11   joined together.    And there has been a lot of

12   consolidation that’s taken place.     And each time it seems

13   they’ve met with the regulatory approvals that were

14   required.    It looked like when you look at that sort of

15   percentage split, that it was fairly even between the

16   number of the companies.      There could be more

17   consolidations I’m sure.      I don’t -- I think that part of

18   the goal from the FCC and the SCC was to try to have a

19   competitive environment where the consolidation didn’t

20   get to be one large company.

21                    (QUESTION FROM THE COUNCIL)

22                    MR. FAGAS:    Could I take one more

23   question?    Please.

24                    (QUESTION FROM THE COUNCIL)


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                 RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                             MARCH 2, 2006

 1                    MR. FAGAS:   Okay.   The question was is it

 2   -- with the satellite issue was it not -- not a practical

 3   issue or not a -- not a -- I shouldn’t say even practical

 4   -- not a -- not a feasible issue because of technical

 5   reasons or because of expense reasons?

 6                    And -- and I would say it’s because of

 7   technical reasons.    The first problem is you can only get
 8   so much bandwidth.    When the satellite is up there, as

 9   we’ve said this is a line of sight type of coverage, it

10   has a tremendous view of a lot of users at the same time

11   and you can’t get enough bandwidth on it and backhaul

12   enough bandwidth from it to support those users.

13                    In fact, the trend for cell sites in an

14   area that’s dense in user population, you know, say a

15   city, Hartford, is to locate a cell site very low,

16   practically near the street corner, almost on, you know,

17   adjacent or every other street corner to try to get that

18   capacity into a very localized spot and then backhaul

19   that back through T-1 lines or other backhaul means back

20   to the central switching offices.     And the problem is --

21   with the satellite is there’s no real way to make it more

22   granular.    You can’t put a big enough antenna on it to

23   select one user because the users are all in the same

24   view of the antennas, so it’s -- it’s only by location,


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                                                               29
             RE: CELLULAR/PCS TECHNOLOGY OVERVIEW
                         MARCH 2, 2006

1   by actually going geographically and using the terrain

2   obstructions and the building obstructions to limit the

3   coverage that you can deliver the capacity in an

4   efficient manner.

5                  Okay.   I think that concludes this talk.

6

7                  (Applause)




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