A NEW USER S GUIDE. PRIVATE LTE NETWORKS By Ira Keltz and Eric DeSilva

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1 A NEW USER S GUIDE PRIVATE LTE NETWORKS By Ira Keltz and Eric DeSilva

But neither of those types of networks are well suited to the demands of modern workplaces, which must contend with requirements to securely connect hundreds of people, to precisely control

2 Businesses have always depended on private wireless systems for communicating, controlling automated systems and gathering data. In the past, these systems have relied on licensed narrowband two-way radio or unlicensed Wi-Fi networks. But neither of those types of networks are well suited to the demands of modern workplaces, which must contend with requirements to securely connect hundreds of people, to precisely control increasingly complex or critical machinery or to analyze data from thousands of sensors monitoring all aspects of a company s processes and workflows. Indeed, these latter requirements are the backbone of the burgeoning Internet of Things (IoT). To meet these high demands, businesses are turning to newer technology and beginning to rely on private LTE networks the same technology used by communications carriers to connect today s smartphones to the Internet. While a private LTE system can transform the way a company does business, companies must also understand the regulatory and implementation issues involved with deploying a customized system to meet its needs. In this handbook, we explore the basics to help you decide whether a private LTE network is right for you. 02 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

3 WHAT CAN PRIVATE LTE DO FOR ME? LTE is short for Long Term Evolution. LTE is the fourth generation of mobile technology, which is currently being used by all US mobile phone providers to connect smartphones to the Internet. For anyone who has used a two-way private land mobile radio system, some of the advantages of LTE are obvious smaller, more capable handsets, higher data rates and longer battery life, to name a few. But other advantages may not be as obvious: Security Private LTE networks use the same digital protocols and security technology that are used to secure today s cellular networks and can be easily updated as needed. Like commercial cellphone networks, access to a private LTE network can be controlled through SIM card-based credentials. In addition, all data is stored within the local network, providing extra peace of mind for a company s sensitive or proprietary information. Configurability Private LTE networks offer an unprecedented ability to configure a network to meet a company s needs. This includes setting priority levels for certain types of data, managing latency and reliability and dedicating spectrum to specific uses to meet quality-of-service requirements. Upgradeability Because private LTE networks rely on the same technology as commercial networks, companies can take advantage of technological advances as they are developed, such as new LTE features or even an upgrade to 5G technology. Scalability LTE networks inherently scale to meet a company s needs and can easily accommodate high and low rate data, machine-to-machine systems, IoT, voice calls and more. In addition, adding a new node to accommodate growth is a fairly straightforward task. Compatibility When deploying a land mobile radio system, it is often the case that once an equipment vendor is chosen, future equipment choices become extremely limited; not all land mobile radios will work with other manufacturers base stations. Because LTE is based on a common global standard, this is not the case for private LTE networks. So long as the end device (such as a phone, sensor or probe) can operate on the same spectrum as the LTE base station (called an enodeb), users have the choice of selecting Android or ios based devices. And, with a private LTE system, the business remains in complete control and can decide which features are offered on the network, how the system is configured, who can access the network and more. All this, and no monthly subscription fees. Many businesses rely on Wi-Fi to meet many of these needs. But while Wi-Fi offers high value for the investment, it falls short when compared to private LTE in terms of security, configurability, upgradeability and scalability for businesses and industries with higher end needs. Private LTE systems also offer seamless mobility and inter-cell hand-off that may be key to certain types of industrial IoT processes or business applications. While Wi-Fi is lower in cost, it is not nearly as robust as LTE and does not offer the breadth of features that LTE does. 03 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

4 WHAT DO I NEED TO GET STARTED WITH PRIVATE LTE? If you decide to make the leap to a private LTE network, you need two things: equipment and spectrum. There are a whole host of equipment vendors in the marketplace that produce LTE enodebs of all sizes to meet your needs, and many existing handsets and other IoT devices already work in the bands most likely to support private LTE networks. Furthermore, we expect that the universe of LTE products designed for private LTE systems will expand dramatically in the near term. More critical because it is more complicated is the choice of spectrum. Several options are available to US companies. Here is information about each. Figure 1: Census Tracts in the Denver, Colorado Metropolitan Area 3.5 GHz Citizens Broadband Radio Service (CBRS) The FCC is still finalizing the rules for CBRS in the MHz band, but once finished, it offers an unprecedented spectrum opportunity for small, privatelyowned networks. Under the existing rules, which are still in flux, the band is divided into megahertz channels, each of which would typically support the private LTE needs of most businesses. Spectrum in the CBRS band is available for use in one of two ways: either on a Priority Access Licensee (PAL) basis (via auction) or on a General Authorized Access () basis to any interested party. Spectrum for PALs is being made available in regions known as Census Tracts areas defined by the US Census Bureau analogous to a neighborhood and encompassing roughly 2,500-8,000 residents (although there is a proposal to issue licenses for larger regions). See Figure 1 for an example - census tracts in the Denver, Colorado metropolitan area. users, for their part, are not constrained by any particular geographic boundaries. The entire system is managed by privately owned sophisticated databases called Spectrum Access Systems (SAS). The SAS will also ensure that private LTE systems protect certain fixed satellite communications facilities and other incumbent users that have historically operated in the band. Thus, as shown in Figure 2, the CBRS band can be thought of as having three tiers in the priority (interference protection) hierarchy: If you are interested in securing CBRS spectrum for a private LTE network, you should consider how the FCC s regulatory model fits your business needs, and specifically whether PAL access within one or more Census Tracts is sufficient or whether use is right for you. DLA Piper can assist you with determining your Census Tract(s), or, if you prefer, the Census Bureau has state-by-state maps of the Census Tracts for download here. DLA Piper can also assist with determining your proximity to any protected facilities and what impact, if any, they may have on your system. If you are in a remote area for instance, you operate a manufacturing plant located outside a metropolitan area you may find that having a authorization is sufficient to ensure the integrity of your private LTE operations. If your operations are strictly indoor, or your campus is large enough that radio transmissions from outside your property will not cause interference to your system, you may also want to consider a operation. If you determine that a PAL is required to protect your private LTE investment however, you may need to participate in an FCC auction to obtain such a license. The FCC s auction procedures for these 04 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

5 licenses have not yet been set, nor has an auction been scheduled at this writing, the best case scenarios put an auction in the second half of If past history holds true, however, participation in FCC auctions can be complex the FCC s forms to participate can require extensive disclosures and the bidding process subjects applicants to onerous anti-collusion rules. Those wishing to bid should contemplate working with counsel experienced in auction participation and the auction process itself. 5 GHz Wi-Fi Band In recent years, the FCC has made available portions of the radio spectrum for unlicensed use bands where products can be marketed that use the radio spectrum, but for which no FCC license is necessary. These products include many successful consumer technologies, such as Wi-Fi and Bluetooth, as well as hardware like garage door openers, cordless telephones and baby monitors. Of particular relevance here, there are portions of the 5 GHz Unlicensed National Information Infrastructure or U-NII bands that are available on an unlicensed basis and can support Private LTE networks. More specifically, the U-NII-1 ( MHz) and U-NII-3 ( MHz) bands can be used with a specific implementation of LTE pioneered by Qualcomm for unlicensed use, called MuLTEfire. These bands are available today, as long as the equipment being deployed has been approved by the FCC for commercial use. DLA Piper attorneys and engineers have substantial experience advising clients with respect Tier 1 (Highest) US Government Operations and grandfathered commercial facilities Tier 2 Up to 7 Priority Access Licensees per area (lowest 100 MHz of band) Tier 3 (Lowest) General Authorized Access users authorized on an as-available basis PAL 3550 MHz to the opportunities and challenges associated with using unlicensed devices. Commercial Mobile Spectrum Bands As a final option, individuals and businesses may use any of the already licensed commercial mobile spectrum bands for private LTE systems. While the overwhelming majority of that spectrum has already been licensed over broad geographic regions, the FCC encourages secondary market activities, including license assignment agreements that involve partitioning (assigning spectrum over a specific geographic area) and disaggregation (assigning specific spectrum) or a combination of the two. The FCC also has rules permitting leasing of spectrum from licensees in partitioned or disaggregated blocks. Among the bands available for use are the Cellular Radio Service Band ( MHz), the Personal Communications Naval Ship-Borne Radars Federal Ground-Based Radars PAL PAL 3600 MHz 3650 MHz 3700 MHz Figure 2: CBRS spectrum options Grandfathered Wireless Broadband Licensees Commercial FSS Earth Stations Service band ( MHz), the Advanced Wireless Service bands ( MHz/ MHz; MHz/ MHz) and the Broadband Radio Service band ( MHz). Realistically, it is unlikely that you will be able to lease or purchase spectrum from license holders in or adjacent to major markets spectrum for commercial networks is typically at a premium in these areas, and licensees are unlikely to balkanize their holdings in such areas. If you are in a rural or less populated area however, spectrum leasing or a partition/disaggregation arrangement may be feasible. DLA Piper can assist you in determining which entities hold licenses in your area of interest, or you can use the FCC s Universal Licensing System s license search function. 05 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

6 HOW DO I CHOOSE THE BAND THAT S BEST FOR ME? Several factors should go into choosing the right band for you. Each is discussed below: Licensed vs. Unlicensed Operation Licensing, as the name implies, offers some degree of interference protection for a licensee s radio systems. That is, licensees have certain spectrum rights that provide protection with respect to other licensed systems and from unlicensed systems. Interference protection typically means that a system is protected from harmful interference caused by other licensed and unlicensed operations, and does not need to protect other systems from interference due to its own authorized operations. In contrast, unlicensed systems must not cause interference to authorized systems and must accept any interference they receive. That said, there are some licensing schemes that create hierarchies, such as the grandfathering and PAL tiers in the CBRS even though PAL licensees are licensed under the FCC s rules, they have no right to interfere with, or be protected from, grandfathered licensees. Even though unlicensed operations do not receive formal protection under the FCC s rules, such operations can, in certain cases, operate relatively interference free. The radio protocols and standards have been developed to facilitate non-interfering operation so two or more systems in close proximity may still be able to coexist without interfering with each other. In addition, just as with Wi-Fi systems, property rights may play into your ability to protect your unlicensed private LTE system if you intend to operate on a campus where you are able to control the proliferation of radio devices over a broad area, you may be able to operate with de facto exclusivity. If you are in a densely populated area, however, you may find that your radio system s reliability and efficiency are adversely impacted by other users you cannot control just as Wi-Fi users in a New York City high rise may experience slower Internet connections when their neighbors are online at the same time. Spectrum Availability To the extent that timeliness of spectrum access is an issue for your company, the Commercial Mobile Spectrum Bands and the U-NII bands are available today, whereas the CBRS auction is not expected to start until the latter half of 2018 at the earliest (although use will be available as soon as the FCC approves SASs for commercial use). Once the auction is complete, there may also be some period of delay until the FCC acts to grant the formal post-auction applications filed by winning bidders. Of note: obtaining access to Commercial Mobile Spectrum Bands through leasing or assignments using partitioning and disaggregation may also require filing applications with the FCC and obtaining pre-closing consents. In general, those types of applications can be filed and granted within 30 to 60 days unless opposed by a third party. Ease of Acquiring Spectrum CBRS access and U-NII bands are available to all, and because formal licensing is not required, will have low entry costs. If you do want added protection in CBRS, obtaining a PAL will likely require participating in an FCC auction. However, due to the large number of PALs that may be available, it is expected that license costs for most areas will be relatively low. Use of the Commercial Mobile Spectrum Bands, on the other hand, will incur mutually agreed upon lease fees as well as transaction costs with the licensee (for instance, legal costs in negotiating a spectrum lease or license assignment agreement). 06 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

Bandwidth Available The more bandwidth available for use, the more flexibility in system design and the more capacity and higher data rates a private LTE system can provide.

7 Bandwidth Available The more bandwidth available for use, the more flexibility in system design and the more capacity and higher data rates a private LTE system can provide. There is up to 150 megahertz of spectrum available in the CBRS band, but the FCC has proposed an aggregation limit allowing a single entity to obtain no more than 40 megahertz of PAL spectrum in any census tract (there is no formal limit on usage by any single entity, but usage by other entities may limit the amount of spectrum available to any user at any given time). The U-NII bands have 225 megahertz available, but because it is unlicensed, this must be shared with all other users in the band. The most potential spectrum may be found in the Commercial Mobile Radio Service bands, but, realistically, interested parties should only plan on being able to obtain a single 5 or 10 megahertz channel. LET S GET STARTED Growing numbers of businesses today have a need for reliable, secure communications. Whether your need is for voice or automation tasks, such as IoT applications, logistics tracking, augmented reality applications or any other related task, a private LTE system may be the solution you need. The first step is fully understanding your requirements and then matching the right spectrum band and equipment to meet those needs. To learn more, please contact us. Our lawyers and engineers are ready to help. 07 PRIVATE LTE NETWORKS: A NEW USER S GUIDE

8 ABOUT US DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world. Find out more at FOR MORE INFORMATION For more information about private LTE systems, please contact: Ira Keltz Principal Engineering T ira.keltz@dlapiper.com Eric DeSilva Partner T eric.desilva@dlapiper.com DLA Piper is a global law firm operating through DLA Piper LLP (US) and affiliated entities. For further information please refer to Note past results are not guarantees of future results. Each matter is individual and will be decided on its own facts. Attorney Advertising. Copyright 2018 DLA Piper LLP (US). All rights reserved. FEB18 MRS

ALLOCATING RF SPECTRUM PARTITIONS IN A CBRS NETWORK

Technical Disclosure Commons Defensive Publications Series September 19, 2017 ALLOCATING RF SPECTRUM PARTITIONS IN A CBRS NETWORK Yi Hsuan Follow this and additional works at: http://www.tdcommons.org/dpubs_series