1. Cognitive Radio Policy Update Sept2012

2. Demand Outstripping Supply • Huge WW Wireless Device Growth Opportunity (2020) • $4.5T Global Value • M2M Wave next • 50B devices • Zetta‐bytes of Data • Enhanced Wireless Devices are Already Leading to a US Spectrum Deficit    • Data more than doubled 4 years in a row • Smartphones generate 24X data of basic‐feature cell phones • Tablets create 5X more traffic than smartphones

3. New Approach to Spectrum • Recent advancements in technology & spectrum policy provide a new strategic path • FCC & global policy introducing “opportunistic” spectrum use and dynamic spectrum access via cognitive techniques • Opportunistic spectrum use involves a spectrum-agile radio that can operate on spectrum determined to be unused and available at any moment in time over a given transmission path. • Cognitive (smart) radios are able to identify spectrum (i.e. radio frequencies) that is not being used, and to quickly tune to those frequencies to transmit and/or receive signals.

4. Rethinking Spectrum Policy • Mobile communications are gasping for capacity • Mobile bandwidth demand exploding • Wireless network capacity is spectrum limited • Yet spectrum (overall) is utilized inefficiently today

5. Spectrum Inefficiently Used • Scarcity today is due to inefficient use rather than a physical shortage • Average occupancy of spectrum is 5.2% with maximum occupancy of 13.1% (New York City) 1 " By demonstrating the first cellular network that uses cognitive radio, xG hopes to show that it could help wireless carriers facing growing demand but a relatively fixed supply of spectrum.”– MIT Technology Review, 2010

6. Recent Developments “The FCC should spur further development and deployment of opportunistic uses across more radio spectrum” FCC Broadband Report to Congress, January 2011 “identify immediately 1,000 MHz of Federal spectrum for sharing with the private sector” PCAST Recommendation to the President, March 25th 2012

7. Recent Developments “Due to the scarcity of spectrum, the complexity of federal operations, and the time and cost of relocating federal users, the old approach alone is no longer feasible.   NTIA proposes a new path forward for spectrum repurposing that relies on a combination of relocating federal users and sharing spectrum between federal agencies and commercial users.” NTIA Press Release March 27, 2012 • 1755-1860Mhz Re-Banding $5bn of video surveillance devices must be relocated to new frequencies The European Commission is moving to enable spectrum-sharing and has even gone so far as to suggest that new regulatory approaches be applied not just to new spectrum holders but current licensees as well Sept 3, 2012

8. Why is this important? • Eliminate the continual sun-setting of hardware – (amps, 2G, 3G, 4G) software vs hardware approach to control product lifecycle • Increased network capacity that opens the door for new applications – broadband access for wireless products that will support more features without relying upon competing networks (voice, video and data) • No spectrum cost – Access vast amounts of new spectrum. Deliver a licensed spectrum experience using unlicensed “opportunistic” spectrum • Secure, reliable two-way communication – All-IP, priority response, two-way audio for PERS and verification. Downloading capability

9. Contact Information Thank You Chris Whiteley, VP Bus Dev T: 941-953-9035 M: 303-358-2175 chrisw@xgtechnology.com www.xgtechnology.com