Harbinger Business Model - Harbinger Commitments -
SUBJECT TO REQUEST FOR CONFIDENTIAL TREATMENT
"""" Harbinger Business Model
Harbinger plans to develop a nationwide terrestrial broadband mobile 4G LTE network, which, without regard to satellite coverage, will provide wireless data on a nationwide basis.
The network will be operated on an open access basis. It will employ MSS spectrum, Ancillary Terrestrial Component ("ATC") spectrum, and terrestrial-only spectrum, as well as spectrum hosting and pooling agreements, all supplemented as appropriate with roaming agreements. As
noted, even without regard to satellite coverage, this combination of spectrum and technologies will enable Harbinger to bring the latest 4G terrestrial wireless broadband technology to underserved areas.
Available Spectrum
At the outset, the network will have no less than 23 MHz of spectrum, consisting of 8 MHz of 1.4 GHz terrestrial spectrum, access to 5 MHz of 1.6 GHz terrestrial spectrum and 10 MHz of MSS/ATC L-band spectrum.
Through a cooperation agreement with Inmarsat and associated waivers of the Commission's ATC rules, by 2013 Harbinger will have access to an additional 30 MHz of ATC spectrum.
Harbinger also is discussing with other Commission licensees the possibility of hosting or pooling their spectrum in order to enable them on the terrestrial wireless network, i.e., the spectrum would be incorporated into the infrastructure of the terrestrial wireless network.
The hosted or pooled spectrum then could be integrated with Harbinger's spectrum to enhance the broadband capacity of the terrestrial network.
Network Overview
As planned, the network will consist of SkyTerra's next generation
satellites, approximately 36,000 terrestrial base stations, multi-frequency mode
user handsets and other consumer devices, a terrestrial cell site and backhaul
network, network operations centers, and the networks of other terrestrial
carriers with whom Harbinger plans to have roaming agreements.
Thus configured and equipped, the network will support a rapidly
growing demand for mobile data and the increasing number of devices using
wireless broadband connections.
After the construction of additional terrestrial base stations, the network will be able to support higher numbers of wireless subscribers, increasing spectrum utilization more than 200% between 2011 and 2013. By 2015, the company expects to serve more than 40 million connected
consumer terrestrial devices on a wholesale basis.
Future Terrestrial Customers
The company intends to be a wholesale only, data only network operator, providing a competitively-priced 4G option, including network, operations and spectrum. A three-tiered pricing plan (tiered, flat rate and advanced) will be offered.
Potential retail distribution customers would include PC manufacturers,
national retailers, service providers without wireless capacity, CE manufacturers
and mobile providers.
Unrestricted access will allow retail distribution customers to completely own the relationship with the end user.
ATC devices will be subsidized to enable retail distribution customers to sell devices at conventional prices.
Fostering Competition
The network will enhance competition in the terrestrial mobile broadband wireless industry and help meet increasing consumer demands for high-capacity wireless mobility.
Without regard to satellite coverage, the terrestrial network will achieve population coverage of at least 260 million by 2015, which is comparable to the coverage provided by other nationwide terrestrial carriers.
Efficient use of spectrum and network assets will not require massive capital spending, allowing for competitive pricing.
The wholesale business model will mean that Harbinger is committed to the success of the retail
customers, enabling competitive carriers and new entrants to enjoy a level playing field in network performance and economics.
With access to a truly open network, retail distribution customers can develop new business models and generate new revenue sources.
Timeline
LTE devices and chipsets are already in development, with mobile modems scheduled for commercial availability in the second half of 2010 and handsets following in late 2011.
Service will begin in two trial markets, Denver and Phoenix, with a commercial launch before the third quarter of 2011 providing service to up to 9 million POPs. All major markets will be installed by the end of the second quarter of 2013
Harbinger Commitments!
In light of the business model described above, Harbinger is prepared to
make the following commitments regarding its terrestrial broadband mobile
network.
Commitment #1:
Not providing L-band spectrum to the two largest wireless providers.
Harbinger will not, without receiving prior Commission approval, make the spectrum used by its terrestrial network in the 1525-1559 MHz/1626.5-1660.5 MHz band ("L-band") available to the largest or second largest provider of commercial mobile radio services ("CMRS") and wireless broadband services.
Commitment #2:
Build-out schedule. Without regard to satellite coverage, Harbinger's 4G terrestrial network will provide coverage to at least 100 million people in the United States by December 31, 2012; to at least 145 million people in the United States by December 31, 2013; and to at least 260 million people in the United States by December 31, 2015.
Commitment #3:
Limits on providing terrestrial network capacity to the two largest wireless providers. Unless it has prior Commission approval, Harbinger will not directly or indirectly provide traffic accounting for more than 25 percent of the total bytes of data carried on its terrestrial network in an Economic Area to any combination of the largest or second largest provider of CMRS and wireless broadband services.
(A subsequent acquisition of a Harbinger customer by the largest or second largest provider will not violate this commitment, but will trigger notification to the Commission, which can take
appropriate action at that time.)
This commitment is based on bytes of data carried during rolling 12-month periods (as determined at the end of every calendar quarter).
The commitment will be effective in an Economic Area twelve months after Harbinger first provides one gigabyte of chargeable, non-test traffic in the Economic Area. Traffic generated by Harbinger's customers roaming on the network of another wireless provider does not count toward the 25% limit.
Harbinger's commitments are contingent upon a grant of the applications filed by SkyTerra for modification of its ATC authority (the"ATC Modification Applications") being granted prior to or concurrently with the grant of the SkyTerra transfer of control.
The commitments will not be effective unless and until the FCC has granted the requests made by SkyTerra in the ATC Modification Applications, as requested by SkyTerra, without requiring changes that are material and adverse to Harbinger. "
Source of Post
http://fjallfoss.fcc.gov/ecfs/document/view?id=7020399883
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