Licensed 700 MHz Spectrum for FAA Compliant

sUAS LOS/BVLOS Operations

May 2015

UPPER 700 MHz A BLOCK

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• The Upper 700 MHz A Block is a 2x1 MHz paired (2 MHz total) block of spectrum licensed by the FCC in 52 geographic areas called Major Economic Areas (MEAs)

• The A Block is 2x1 protected spectrum at 757-758 MHz and 787-788 MHz

• Upper 700 MHz licenses covering the entire United States and Gulf of Mexico are controlled by Access Spectrum with 28 licenses & 2 other investment firmswith 23 licenses & 1 license respectively

• The Price of the Spectrum is $0.75/MHz *POP (further explanation follows)

• Upper 700 MHz A Licenses covers approximately 313 million *POPs

(*POP= Point of Population)

Next Steps for Purchase

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• Access Spectrum is in the process of “Parceling” its Upper 700 MHz Licenses now to Individual CII and Utilities for Purchase

• Contact Access Spectrum’s, John Vislosky, to set up an immediate meeting and/or for information and Economic Area Map (EA) to determine the Licenses you wish to purchase

• Access Spectrum wil confirm your Licensed Geographies and prepare a simple Term Sheet to review terms and investment

• If a proof of concept pilot is required we suggest it runs concurrently with finalizing the purchase

• Once the Term Sheet is fully executed and payment made Access Spectrum will coordinate with your company and the FCC to transfer the licenses.

RED: Sold/Under Contract

• GREY: Access Spectrum Geography (28 Licenses) to include the Gulf of Mexico and Alaska

• WHITE: Beach Point Capital Geography (21 Licenses) to include Hawaii

• YELLOW: Columbia Capital Geography (1 License)

700 MHz A Block Sale To Date

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• SALE: NorthWestern Energy (NWE) Signed a Purchase Agreement 3/23/15 for States of Montana and South Dakota and a section of Wyoming;

• SALE: Salt River Project (SRP) Signed a Purchase Agreement 4/6/15 for State of Arizona and in specific Phoenix-Mesa Economic Area;

• Lease: GRE Minnesota Lease from 2007 until 2019- plans to convert to purchase;

• Both utilities found the process “easier than expected”, “quick & uncomplicated”, “Access Spectrum is very flexible”;

• Access Spectrum handled the majority of the FCC Filings;

• Cooperative agreement signed with Great River Energy on adjacent geography and then quickly approved by the FCC for NWE purchase;

• Transfer Complete within 90 days (predicated on the FCC)

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• Why is Access Spectrum selling licenses now?

Access Spectrum originally purchased its licenses in 2001 to pursue a spectrum leasing business to utilities and other private wireless users.In 2007, the FCC granted Access Spectrum’s petition to reconfigure its spectrum holdings which provided much more flexible uses and a wider variety of applications.

More recently, given the increasing demand from utilities who prefer to own and new applications (like UAVs), we have re-focused our efforts on selling our licenses.

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• I understand is a very competitive price?

We are selling our spectrum for $.75/MHz-POP; this is calculated by taking the population covered and multiplying by 2 (because there are two megahertz of spectrum) and then multiply by $0.75.

By comparison, the most recent AWS spectrum auction fetched prices of well over $2.00/MHz-pop.

Ours Spectrum is priced lower to reflect the narrower bandwidth than the AWS Spectrum which means the 700 MHz A Block on its own would not be of interest to cell phone companies.

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• Could you give a brief description of your spectrum assets?

Our spectrum is situated in the Upper 700 MHz in the A Block. The A Block is paired spectrum, 1 MHz x 1 MHz. Our service and technical rules are the same as Verizon’s C Block which is adjacent to our spectrum which permits a wide variety of applications and technology.

The 700 MHz Spectrum is often referred to as “beachfront property” due to its optimal combination of propagation (meaning, how far the signal travels) and its ability to penetrate buildings and other objects such as foliage.

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• What are your targeted markets and what is the tie in to the Commercial UAS Market?

We are targeting potential buyers in a variety of industries from critical infrastructure (including utilities, oil and gas companies, and the like) to technology companies to the commercial UAS market;What all of these potential buyers have in common is a need for dedicated, protected spectrum with superior propagation characteristics to transmit critical data both mobile and point to point;This can be used for everything from monitoring electric substations or gas pipelines to controlling UAVs in flight;Critical Infrastructure Industry for conventional data and mobile data applications.

More specifically with respect to the commercial UAS market, in our meetings with the FAA and FCC, it has become clear that licensed spectrum will be required for BLOS flight control systems. However, every conference and meeting that we have attended has begun with the question and the conundrum of where will the UAS commercial community find spectrum for BLOS? Maintaining control of commercial UAVs is critical for both LOS and BLOS, and it is our view that the 700 MHz A Block spectrum is ideal for secure uninterrupted control and data applications including UAVs

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• Why is the 700 MHz Spectrum suitable for the UAS BLOS flight controls and data applications?

It is clean, unencumbered, and has very favorable FCC rules to promote commercial use. The band width is plenty for flight controls and data applications. It overcomes the dilemma of channel skipping and interference and allows for an uninterrupted signal between the control station and the aircraft/vehicle. Using exclusive spectrum in the control architecture, therefore, allows for a smaller band width for control. While we understand that this challenges conventional thinking, we as well as many others believe this is the safest and most secure way to control vehicles BvLOS.

Applications include (but not limited to):Land/ Sea/ Air—System Control RanchingNews Media Coverage Oil Operations in Alaska and the Gulf Line Inspections Shale and Pipeline OperationsSecurity MiningAgriculture Survey/Mapping

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• What is the process should an entity be interested in acquiring this spectrum for UAS use?

Contact John Vislosky: (John.Vislosky@AccesssSpectrum.com or Cell: 240-507-8816) and let’s discuss the geographies you are interested in. We have the ability to parcel these licenses for sale down to a county sized geography;

After that the process is very simple. We agree to terms and then file for the licenses transfer at the FCC together. Access Spectrum will do the majority of the prep work to insure a smooth transition;

The process from start to finish is 90 days or less until you own the license and begin operating. We recently filed with the FCC for permission to sell some geographies to two utilities, and others have expressed interest from Utilities, Petrochemical, Tower companies to various industries supporting the Commercial UAS Market.

UPPER 700 MHz A BLOCKFrequently Asked Questions (FAQs)

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• What other resources can you provide in conjunction with the spectrum sale?

We have partnered with Praxis Aerospace Concepts International to provide technical assistance and customer support; including technology acquisition, implementation and safety assessments.

Service-disabled veteran-owned small business based in Southern Nevada Robotics/Unmanned Systems (UxS) Support Services

Robotics Management and Technical ServicesUxS Individual Crew Services UxS Operational Support Services

Proven performanceInaugural team member with State of Nevada UAS Test SiteTeam Member with Northeast UAS Airspace Integration Research Alliance (NY/MA UAS Test Site)2015 Flight Tests at NMSU Flight Test Center2015 DARPA Robotics ChallengeBase11 Aerodrome

Jonathan Daniels, PresidentPraxis Aerospace Concepts International, LLCEmail: Jon.Daniels@PraxisAerospace.comOffice: (702) 879-8784

UPPER 700 MHz A BLOCKFavorable FCC Rules and Spectrum Attributes

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• Unencumbered/clear and licensed spectrum

• Offers superior propagation characteristics (building penetration and rural coverage) relative to other bands

• Is governed by flexible service and technical rules which permit a wide range of technologies and applications (UAS, Voice, SCADA, Telemetry, and otherData applications)

• Base Station transmissions < 1000 watts ERP on the Lower Frequency and < 30 watts ERP on the Higher Frequency

• Antenna Height < 305 Meters (1000 Feet) HAAT.

UPPER 700 MHz A BLOCKFavorable FCC Rules and Spectrum Attributes

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• No Build out requirements

• Rules call for Substantial Use of ServiceDefined as …service which is sound, favorable and substantially above a level of mediocre service which just might minimally warrant renewal.

• “Safe Harbor”: …providing a signal that covers 50% of the population in the geographic area covered by the license. A licensee is not required to meet the safe harbor test; it may seek to show substantial service in other ways.

• Ease of renewal• The current term for A Block licenses expires on June 13, 2019. Prior to expiration

date licenses must file an application to renew licenses for a new ten year term –and then in perpetuity if you remain within the FCC Part 27 Rules described above.

Salt River ProjectUpper 700 MHz A Block Spectrum Test

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• In September 2014 through December 2014, Salt River Project (SRP is the largest Utility in Arizona) conducted a comprehensive Pilot Test of the 700 MHz A Block Spectrum. The results of the test were very positive:

• No adjunct tenant interference • Our adjunct neighbors: Verizon and FirstNet do not interfere with the

700 MHz A Block Spectrum

• Excellent Propagation and coverage characteristics• The frequency wave traveled and was not hindered by buildings, foliage, and

water, etc.

• Ample Bandwidth for Most Applications • Ideal for Flight Controls, Packed Data or Video and was tested extensively by SRP

for both Fixed and Mobile Data applications

• Coupled with the selection of proper architecture and equipment 700 MHz A Block Spectrum can fulfill all current critical applications or requirements• If needed, Streaming Video can be accommodated in the L or C Bands

Unmanned Aircraft SystemsUpper 700 MHz A Block Spectrum Applications

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UAS Program Information

• FAA is creating commercial rules now for Beyond Line of Sight Flight (BLOS)

• Met with the FAA on 3.10.15 and the Director, UAS Integration Office confirmed that the FAA will require licensed spectrum for flight controls of “Small Category UASs (sUAS) Beyond Line of Sight and Over Populated Areas;

• 700 MHz A Block is a proposed frequency band for BLOS• More than adequate band width because it is exclusive and licensed spectrum –12.5 kHz

• 900 MHz does require 5 MHz or greater due to the amount of interference

• Full integration for new UAS programs through Praxis Aerospace Concepts International—one stop UAS shop coupled with exclusive spectrum

• Data Scooping and Video Downloads- State of the art software and the optimization of remaining spectrum at 700 MHz A Block 2x 1 MHz paired-provides more than adequate bandwidth for both video and data collection and sensing

FAA’s UAS Integration Model

UAS Program Information

• FCC: Met on 3.11.15 with the Deputy Chief OET, Deputy Chief OET Policy and Rules, and 7 members of the Wireless Bureau. Consensus was that there is nothing that prevents 700 MHz A Block govern by Part 27 Rules from being used to control UAS or used in conjunction with UAS operations.

• RTCA (Radio Technical Commission for Aeronautics): Participating Member of the SC-228 WG-2 Command and Control Subcommittee. This Subcommittee recommends spectrum for flight control for 55 LBS+

• ASTM (American Society for Testing and Materials): On 4.8.15, met with the Chairman of the F38 Committee. This Committee addresses issues related to design, performance, quality acceptance tests, and safety monitoring for unmanned aircraft systems.

• Access Spectrum is a member of the F-38 Committee.

• Process of Developing Program use in conjunction with the FAA Approved Test Centers and Various Academic Programs to further test the 700 MHz for UAS Flight Control and Data Use BVLOS.

Result: Terrestrial BLOS

Own the Terrestrial RF Bands, Sell the SIM Cards!

Return On Investment

• Price model similar to that of inflight internet access rates: • 3000 min. flight time @ $2000. • 117.5K UAS users per 3000 min. package recovers

initial cost of spectrum by 2019. • Exponential burst in use projected following FAA

integration in 2016.

• Product lines (radios, transmitters, receivers, GCS, etc.) dedicated to 700MHz and marketed to the UAS community provide an additional means of income.

• The rate of UAS post test-site integration will transform the spectrum use into a billion dollar utility.

• Ability/Choice to further Lease unused Spectrum Capacity and mandate Lease Price and Use

330M in 2014

UAS RF Subscribers

Conclusion

• Mitigate Risk by being on a licensed band for Flight Control

• Secured and uninterrupted Data, Sensing, etc.

• Ability to Lease out unused capacity

• As Licensee/Owner- Control and Use of your Spectrum

• Rapidly Developing Markets: Utilities, Petrochemical, UAS, etc.

• Equipment Manufacturers gravitating to support 700 MHz A Block in a myriad of applications

• Return on Investment in a pristine Spectrum Block

• Available now—Operational within 90 Days

Contact Information

John Vislosky, Senior Vice PresidentAccess Spectrum, LLCEmail: John.Vislosky@AccessSpectrum.comOffice: (301) 941-1110 Cell: (240)-507-8816

Or Visit our Website at www.AccessSpectrum.com

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For 700 MHz Spectrum Purchase or Further Information Contact: