Attachments 1 - 4

6120-EX-PL-1998 Text Documents

MOUNTAIN TELECOMMUNICATIONS, INC.

2002-07-30ELS_57540

                                                            ATTACHMENT 1



       4.         Particulars of Operation:

Frequency or      Maximum RF    Insert maximum       Insert    List the emission     Signal       Describe how
frequency Bands   output        effective            "Mean"    designator for each   Modulation   the necessary
(kHz, Mhz or      power at      radiated power       or        freq.                              bandwidth was
GHz)              transmitter   from the antenna     "Peak"                                       determined
                  (specify                           as
                  units)                             defined
                                                     in Part
       (A)              (B)              (c)         5                  (B)                 (F)         (G)
                                                         (D)

Basestation
(Downlink) :
3475.688 —        30 dBm        omn i —              Mean      Q7W                   I/4 DQPSK    carrier
3492.688 MHz      (1 watt)      directional :                  (type of              modulating   spacing:
                  per           40 dBm         (10             information is        a 10         307.2 kHz
                  carrier)      watts)     EIRP                C, D & BE —           timeslot     maximum of
                                120 degree                     facsimile, data       TDMA         54 carriers
                                sectored:                      and telephony)        carrier      in frequency
                                45 dBm (31                                                        plan, 280
                                watts) EIRP                                                       kHz qguard
                                (excluding                                                        band at both
                                cable losses)                                                     ends of band
Subscriber
Unit
(Uplink) :
3425 — 3442       27 dBm        45 dBm (31           Mean      Q7W                   I/4 DQPSK    carrier
MHz               (0 .5         watts) EIRP                     (type of             modulating   spacing:
                  watt) per     per                            information is        a 10         307.2 kHz
                  subscribe     subscriber                     C, D & EBE —          timeslot     maximum of
                  r for 3                                      facsimile, data       TDMA         54 carriers
                  timeslots                                    and telephony)        carrier      in frequency
                                                                                                  plan, 280
                                                                                                  kHz qguard
                                                                                                  band at both
                                                                                                  ends of band


                         ATTACHMENT 2

6.   Is a directional antenna used?     Yes _X_    No

If $¥Yes# give the following information:
Width of beam in degrees at the half—power point:

Bagsestation:       Elevation: 8 degrees
                    Azimuth: 360, 180, 120 or 60 degrees
                    Antennas can be vertically or horizontally
                     polarized
                    QOrientationinhorizontalplane:   per site
                     requirements
                    Orientationinverticalplane:    0—2 degrees
                     downtilt    from horizontal


SubscriberUnit:     20 degrees in azimuth and elevation,
                    with vertical or horizontal polarization
                    Orientationinhorizontalplane:   per site
                     requirements
                    Orientationinverticalplane:   per site
                     requirements


ATTACHMENT 3
3.0      ___DESCRIPTION OF EQUIPMENT AND THEORY OF OPERATION

3.1      GENERAL SYSTEM CONFIGURATION

The Nortel PROXIMITY—IY Fixed Wireless Access (FWA) system provides a means of
connecting subscribers to a telecommunications network using a radio link in place of the
more traditional method of copper cable. A radio transceiver mounted on the subscriber
premises, called a Residential Service System (RSS), communicates by near line—of—sight
links with a basestation. Multiple basestations can be deployed in a cellular arrangement to
cover a wide geographic area.

Each basestation is connected to a PSTN local exchange, e.g. a Nortel DMS—100, as shown
in the diagram below, via conventional Tl transmission links using fiber or point—point
radio. Each RSS provides two subscriber lines that can accept any normal analog telephone
equipment for access to the PSTN.

The FWA Element Manager works together with each of the network elements to allow the
network to be operated from management terminals located at a single control center.



      ocTaAGonNnaL
       ANTENNA




                                                                    EXCHANGE


                                            BASE STATION




                                I

                         u_ }

                                    h   t
           PHON      PX SOU   RHEdES




                         Figure 1 — PROXIMITY—I" System Configuration

The system parameters have been selected to provide the optimum combination of range,
services, call quality and cost for local loop fixed applications. Features include:


*      Standard subscriber apparatus: telephone, answer machine, FAX, modem
&      Multiple subscriber lines
*      High basestation range providing wide area coverage for low investment


3.2     PROXIMITY IBASESTATION

The basestation comprises one or more Transceiver Masthead Units (TMU) together with a
processor unit to be installed inside a basestation shelter.


                      To
               Subscribers
                               &—————_               E __L_>                  To
                                                                         Subscribers
                                                          * Modulators
                                                      TMU          .
                                                          + Transmitters
                                                               * Receiver Front End
                               /4____7                                                      To other
                                                                      flmm                     BJ5q
                                                     * Optional                             Stations
                                                       Point to Point links


                                                                      * Baseband Processing
                                                                      *« Demodulators
             To Switch                                                + E1 Framing
               Site        fi                                          Optional
                                                          TPU         * Trunk line multiplexer
                                                                      *« Uninterruptable Power Supply
                                                                      *« Microwave Point to Point




                                Figure 2 — PROXIMITY—I*"* Basestation

The basestation is configurable, in multiples of 3, between three and eighteen bearers. The
term "Bearer" refers to the number of radio channels that the basestation is equipped to
operate in simultaneously. Each "radio channel" comprises a receive carrier and transmit
channel separated by a fixed spacing in frequency (i.e. frequency division duplex @ 50.688
MHz).

The physical layer of the air interface is a full duplex TDMA system with 54 RF channels
in two 17 Mhz sub—bands between 3.4 and 3.5 GHz. Each RF channel is structured to
provide 10 timeslots. Each timeslot can be used for acquisition or traffic. For speech
traffic, the basestation transcodes 64Kbps PCM speech to 32 Kbps ADPCM which is
mapped to a single RF timeslot. For voice—band data traffic (including FAX) the RSS
implements a modem detection algorithm and directly maps the 64 Kbps PCM onto two RF
timeslots. Each transceiver is capable of being configured, under continuous control, to
any RF channel.


3.3      CUSTOMER PREMISES EQUIPMENT

The Customer Premises Equipment for the PROXIMITY—I* system, the Residential
Service System (RSS), includes a Radio Transceiver Unit (RTU) with integral antenna
which is located on the outside of the customers premises. The external equipment is both
weather proof and vandal proof, and is supplied with a suitable mounting bracket.

                           (300 A/F TYP)                        (90 NOM)




                              Figure 3 — PROXIMITY—I**" RTU

The RSS is fitted with an integral directional antenna, requiring near line—of—site visibility
of the basestation. The system can be installed to provide a better Bit Error Rate (BER)
than for mobile systems and the installation ensures that any multipath and fading effects
are shallower and slower than those for mobiles. The system has been designed to meet
the BER objectives of CCITT standards for end to end 64kbit/s transmission links.

A weatherproofjunction unit facilitates interconnection between the RTU and the power
unit and telephone jack sockets (RPU and CJU) which are mounted inside the customer
premises. This configuration supports the interfacing of standard 2—wire DTMF telephones,
FAX machines, data modems, answering machines and cordless telephones.


                                                                                       RTU




                                                                               Cable
                                                          CJU (No 3)
                                   CJU (No 2)
                                                                  Transition
                                                                    Cables

                      In—country
                      extension




                            Figure 4 — RSS Installation Configuration

The RSS provides the customer with up to two independent analog lines. When the second
line is required, it can be enabled over the air interface by a software command without the
need for either a site visit or additional hardware.

Functionality of standard telephone equipment, when attached to the RSS, is unchanged
from the situation where direct wired connection is made to the PSTN. Full service
transparency is provided for both speech or data transmission from Group 3 FAX machines
and voice band data modems to 56 Kbps.


3.4      SYSTEM CAPACITY, MODULARITY AND RANGE

The PROXIMITY—I~M basestation can be constructed and configured on a modular basis to
provide 3 to 18 radio bearers, each with 10 time slots, giving 30 to 180 voice channels.

Applying traffic levels of 120mE and 60mE, often considered typical for business and
residential customers respectively, with less than 1% probability of call blocking, the
theoretical subscriber capacities shown below apply to the basestation configurations
shown.

                              Voice Slots       Erlangs          Customers          Customers
                                                                supported @        supported @
                                                                  120 mE              60 mE

      3 Bearer Omni                30             20                   165               330
      6 Bearer Omni                60             46                   383               767
18 Bearer Tri—Sector               180            138                  1,150            2,300


                            Table 1 — Basestation Capacities

The figures given above show total traffic capacity capabilities for each PROXIMITY—I*M
basestation configuration, and potential subscriber—line quantification based on the stated
traffic ratings.

Subject to site surveys, PROXIMITY—I*M will provide coverage of up to 20 km radius, in a
rural environment. In a city environment the typical cell radius will be reduced by the need
to provide sufficient capacity in the locality and avoid clutter. The minimum cell size is
200m which will accommodate very high customer / traffic density. Further range
increases can be achieved when terrain and propagation issues allow — e.g. line of sight
operation, or by special engineering.

3.5       OPERATIONAL CHARACTERISTICS

3.5.1    Operational Frequencies
The frequency allocation for the PROXIMITY—ITY — FWA system complies fully with the
guidelines issued by CEPT/ETSI. In order to deploy a network of base stations providing
complete geographic coverage of an area by re—using frequencies on a cellular basis,
allocation by the administration of two frequency bands each 17 MHz wide with a duplex
spacing of 50 MHz (per Annex A of CEPT channel plan above) is required. 3425.00 to
3442.00 MHz is used for the up—link from the customer terminals to the base stations and
3475.688 to 3492.688 MHz for the basestation downlink.


Frequency Plan
The full band is split into 54 frequency bearers with a channel spacing of 307.2 kHz.
Each frequency bearer provides a full duplex radio channel split into ten 32 kbps time
slots by using a Time Division Multiple Access (TDMA) modulation scheme. The
system employs frequency division duplex operation with downlink and uplink bands
separated by 50.688 Mhz.

The frequency requirements of the FWA system are provided below.

Spectrum Allocation
The band allocation should allow the exact channels used to be chosen from the formula
below.

      Frequency Channel Table (Centre Frequencies)
      Uplink frequency (to basestation)          3425.2800 + (n x 0.3072) MHz
      Downlink frequency (from base)             3475.9680 + (n x 0.3072) MHz
      Channels are numbered from n = 0 to 53 inclusive


A basestation can operate from a selection of the 54 bearers available in the frequency
plan, the frequencies being turned on or off remotely under the control of the Proximity—I
Element Manager (EM) or at the Base Station site via a Field Engineering Terminal
(FET). Changing the frequency channels of the Base Station is achieved by software re—
program only, with no alteration to the hardware. The Residential Service System (RSS)
is designed to automatically adjust to the complete range of frequencies available in the
cell.

ETSI TM4 Equipment Parameters Approval Specification
A European—wide equipment standard for radio access systems is defined by the ETSI
TM4 (Transmission and Multiplexing) group. The standard of relevance here is that for
TDMA Point to Multipoint Digital Systems in the 3 to 11 GHz Band (reference DE/TM—
04020). This defines details of the radio equipment parameters to enable authorities to
ensure co—existence with other approved radio systems operating in adjacent bands. The
specification defines standard network interfaces and allows operators to transparently
connect subscribers to the public telecommunication network. Nortel has contributed to
the ETSI TM4/2 preparatory working group and the Proximity—I product fully complies
with this new ETSI 3 — 11 GHz P—MP equipment standard. The standard has been
approved by TM4, having entered the Public Enquiry stage, and it is expected to be
formally ratified shortly.

An associated new ETSI standard is the 3 —11 GHz P—MP Antenna Standard which is in
the final stages of preparation. This new standard is expected to be approved and enter
Public Enquiry stage in the near future. The Nortel Proximity—I product is the first such
P—MP (wireless access) system to comply with this new antenna standard.

3.5.2   Link Budgets
The following radio path link budgets illustrate a typical omni—directional cell
configuration of Proximity—I.

                        Receiving End                  Base Station           RSS
                  Ed/No Min (1 x10—3 BER)                 7.5 dB             7.5 dB
                   Rx Implementation Loss                 1.0 dB            1.0 dB
                       Gross Bit Rate                    512 kbps          512 kbps
                        Noise Figure                      6.0 dB            6.0 dB
                    Receiver Sensitivity               —102.4 dBm         —102.4 dBm
                Cable Loss + Connector Loss               1.5 dB             0.0 dB
                      Rx Antenna Gain                     10.0 dBi          18.0 dBi
                 Rx Isotropic Power (50%Ps)             —110.9 dBm        —120.4 dBm



                     Transmitting End                       RSS          Base Station
                RF Peak Power (ant connector)            27.0 dBm         30.0 dBm
                 Cable Loss + Connector Loss               0.0 dB           1.5 dB


                      Tx Antenna Gain                     18.0 dBi            10.0 dBi
                         Peak EIRP                       45.0 dBm            38.5 dBm
                   Tx Implementation Loss                  1.0 dB      |       0.5 dB



                     Total Link Budget                     Uplink            Downlink
                 Isotropic Path Loss (50%Ps)              154.9 dB            158.4 dB

       Table 2 — Typical Baseline Omni—Sector Cell Link Budget (No Margins)

The following radio path link budgets illustrate a typical tri—sectored cell configuration of
Proximity—I.

           Receiving End                              Base Station         RSS
           Ed/No Min (1 x10—3 BER)                    7.5 dB               7.5 dB
           Rx Implementation Loss                     1.0 dB               1.0 dB
           Gross Bit Rate                             512 kbps             512 kbps
           Noise Figure                               6.0 dB               6.0 dB
           Receiver Sensitivity                       —102.4 dBm           —102.4 dBm
           Cable Loss + Connector Loss                1.5 dB               0.0 dB
           Rx Antenna Gain                            14.0 dBi             18.0 dBi
           Rx Isotropic Power (50%Ps)                 —114.9 dBm           —120.4 dBm



           Transmitting End                           RSS                  Base Station
           RF Peak Power (ant connector)              27.0 dBm             30.0 dBm
           Cable Loss + Connector Loss                0.0 dB               1.5 dB
           Tx Antenna Gain                            18.0 dBi             14.0 dBi
           Peak EIRP                                  45.0 dBm             42.5 dBm
           T‘x Implementation Loss                    1.0 dB               0.5 dB



           Total Link Budget                          Uplink               Downlink
           Isotropic Path Loss (50%Ps)                158.9 dB             162.4 dB
         Table 3 — Typical Baseline Tri—Sector Cell Link Budget (No Margins)

Table 2 shows that the omnidirectional link budget is uplink limited with a maximum
path loss without margins of 154.9 dB. The tri—sector link budget is similarly uplink
limited with a maximum path loss without margins of 158.9 dB. The implementation
loss included in the receiver sensitivity figure accounts for non—ideal demodulator
performance. This has been measured as 1 dB in both the RSS and Base Station. The
link budget is reduced further by a transmit implementation loss to account for non—ideal
modulator and transmit chain performance. This is 0.5 dB for the Base Station and 1 dB


for the RSS. The Tx Implementation Loss does not affect the EIRP figure but represents
the loss that would be observed if the signal were demodulated by an ideal receiver.

The probability of achieving an acceptable BER (called the Probability of Service — Ps)
can be described in terms of time and location. At a fixed location, the signal strength
will vary due to temporal fading. Over a given area, the signal strength will vary due to
terrain and obstacle shadowing even under non—fading conditions. In reality, the
Probability of Service is dependent on the effects of time and location.

At the maximum path loss defined by the baseline link budget a subscriber would
statistically experience a signal strength that fell below the receiver sensitivity for 50% of
the time. In terms of location, 50% of locations along the cell perimeter will statistically
have a median signal strength that falls below the receiver sensitivity. This clearly
illustrates that in the majority of cases additional margins will be required on top of the
baseline link budget.

In common with other radio access and cellular systems these additional margins will be
needed to account for temporal fading, area coverage objectives, co—channel and adjacent
channel interference, and anomalous propagation effects. The value of the margin
required will depend on the nature of deployment, the local environment and operator—
dependent radio network design objectives. Since tens of dB‘s maybe involved in these
margins, careful assessment of the Operator‘s objectives is essential.

3.5.3   Margins

Shadow Margin and Area Coverage
In common with other radio access and cellular systems, shadowing due to terrain and
other obstacles will be encountered. Thus a percentage of locations within a cell will
have a median signal strength that falls below the receiver sensitivity. To increase the
area coverage within a cell a shadow margin is added to the link budget. This has the
effect of reducing the cell radius down from the noise—limited range.

The percentage area covered acceptable to an operator usually ranges between 75—99%.
The requirements may differ from urban to rural areas. In calculating coverage quality,
improvement can be obtained by considering basestation diversity. The figure below
shows how the area coverage varies with the Shadow Margin for both a single server
basestation and the situation where a second basestation is available.


           100%
            95%
            90%
            85%
            80%
            75%
            170%
            65%
                                                                       Assumptions:
            60%                                                        Range Law=3.8
            55%                                                        Standard Deviation = 104B
            50%
                   en   «—     OA   &   <    U    t   Lied   co    &     O    «—      N    C    <




                                                                                                     15
                                                                         «—   «—      x—   «—   «—

                                              Shadow Margin (dB)


                                    ————— Single Server                  2 Server




                             Figure 5 — RF Coverage vs. Shadow Margin

A variation in shadow margin from 0 dB and 15 dB corresponds to a reduction in range
by a factor of approximately 2.6. Therefore, the Operator‘s choice on percentage area
coverage has a large impact on the linkbudget. In calculating the shadow margin
required it has been assumed that the Propagation Range Law is —3.8, the Base Station
antenna height is 20 m and the RSS height is 7 m.

Temporal Fade Margins
The two way radio link between a Base Station and an RSS will be subject to short term
fluctuations in signal levels over time. The radio channel will not be subject to the
severity of fading as that normally seen in mobile cellular systems due to the directional
antenna of the RSS which is fixed and is normally mounted high relative to local clutter.

The effect of temporal fading is only considered in terms of radio link availability. Radio
link availability is a long term measurement that describes the percentage of time that the
signal strength is sufficient to provide a raw BER of 10—3. Nortel‘s working assumptions
are as follows.


                    Percentage of Time                        Temporal
                          Signal
                      Strength above                     Fade Margin (dB)
                        Threshold
                          90.0%                                  4.2
                          99.9%                                   10
                          99.95%                                 10.7
                          99.99%                                  12

                           Table 6 — Temporal Fade Margins

Interference Margin
A margin is required to account for sensitivity degradation due to co—channel and
adjacent channel interference. The precise value required will depend upon the particular
deployment and may not be the same for the uplink and the downlink. The recommended
working assumptions of interference margin is 2 dB for both the uplink and downlink

Other link budget margins
Additional link budget margins may be required in addition to the above. These margins
are to make an allowance for the following:

   *       Local clutter around the RSS, e.g. local foliage that will introduce typical
           losses of approximately 9.1 dB per metre of foliage.

   *       Heavy rainfall may require an additional link margin for high availability links
           in geographical areas prone to such conditions. Calculations based on the
           CCIR reports and recommendations suggest a working assumption of 2 dB
           margin for 99.999% availability in tropical regions. Temperate climates will
           not require additional margin for rainfall.

   *       Multipath propagation from specular reflections from tall buildings,
           mountains, etc. could cause multipath to occur. The directional RSS antenna
           will usually introduce a significant attenuation into the delayed signals relative
           to the direct signal.

3.5.4   Propagation Immunity
Several aspects have been taken into consideration in the architectural design of the all—
digital Proximity — I product range. These include:

   *       Air Interface Protocol — fundamental frequency choice from a choice of
           multiple access methods (e.g. FDMA, TDD, TDMA, SH—FDMA, NB—CDMA,
           BB—CDMA etc.); modulation type; frame structure; coding; error protection;
           timing protocols; pilot usage etc.
   *       Design Implementation — degree of RF filtering, antenna performance,
           margins incorporated etc.


           RF Planning — procedures adopted, design rules

The foflowing points are considered particularly relevant in understanding how the
Proximity—I product effects superior immunity to interference and propagation
degradation mechanisms:

           all digital, TDMA system

           integral directional antenna within the subscriber unit (RSS), with
           approximately 20 degrees —3 dB beamwidth

           for all but the smaller basestation arrangements (lowest capacities, where
           omni arrangements can be used) a tri—sectored configuration is used; modeling
           of RF network deployments in various scenarios have confirmed the optimal
           nature of this highly bi—directivity scheme

           use of polarization discrimination at the RSS. This is integral within the
           design and forms part of the RF planning process, with no extra effort in
           installation

           integral equalisation using appropriately robust, intra—frame training sequence

           sound z/4 QPSK modulation scheme, as used widely in IS—54+ D—AMPS
           cellular radio

           FEC protection; up to 2 error symbols can be accommodated in each burst

           significant level of front end RF selectivity at the RSS diplexer and similarly
           for the base station; the RSS bandwidth is approximately 100 MHz

Generally, the propagation environment as compared with cellular radio is far more
benign, and much simpler coding can be used and the processing delay is relatively very
short. Nevertheless the overall RF design budget for Proximity—I features significantly
higher margins of safety as compared to cellular. Additionally the quality of the
subscriber installation is assured by the easily—used Signal Assessment Kit.


ATTACHMENT 4

4.0    __PROGRAM OF RESEARCH AND EXPERIMENTATION

Mountain Telecommunications Inc. (MTI) seeks Radio Station Authorizations under Part
5 of FCC Rules — Experimental Radio Service — for the purpose of conducting a pilot
deployment of the Nortel Proximity I Fixed Wireless Access system on the Salt River
Pima Maricopa Indian Community (SRPMIC) reservation near Scottsdale, AZ.

MTI specifically references the following types of operations (per section 5.202 of FCC
rules governing the Experimental Radio Service) as being applicable:
(i)     Development ofradio technique, equipment, operational data or engineering data
        related to an existing or proposed radio service.
(ii)    Limited market studies
(iii)   Other types ofexperiments that are not specifically covered under paragraphs (a)
        through (J) ofthis section

MTI intend to operate the system under conditions approximating those that would exist
in full—scale commercial deployments of the system, in order to evaluate its technical and
operational viability and its ability to satisfy the telecommunications service requirements
of SRPMIC members.

For this pilot deployment, MTI is planning to deploy and operate up to three Proximity I
base stations on the reservation. These base stations will interface directly to MTT‘s
existing DMS—500 local exchange and support up to 150 live (non—commercial)
subscribers, of which 65 are presently un—served and would be receiving telephone
service for the first time.

The trial subscribers would utilize a range of standard telephone apparatus (DTMF
telephones, cordless telephones, FAX machines, answering machines and voiceband data
modems) and have access to the full set of data and telephony services provided by the
DMS—500 and supported by the Proximity I system. This includes local voice telephony,
CLASS services, FAX and data services, Internet access, intra— and inter—LATA toll,
operator services and 911 emergency services.

The trial subscribers would have the Proximity I RSS installed at their premises and be
expected to provide feedback to MTI and the equipment vendor (Nortel), on the
performance and overall acceptability (aesthetics, ease of use, service benefits) of the
system and the services provided. This feedback data would then be used to optimize the
operational, performance and deployment characteristics of the system and prepare MTI
for future commercial deployment.


As the Proximity I base stations and subscriber terminals will be radiating and receiving
RF signals in the 3.4—3.5 Ghz band, MTI understands that the system may be susceptible
to interface from, and have the potential to interfere with, other systems operating in this
band. As part of the research and experimentation to be carried out under this
experimental authorization, MTI will assist Nortel in collecting data on the nature of any
interference observed and its effect on the performance of the Proximity I system.

It is our understanding that Nortel has been working with the NTIA, DoD and Joint
Spectrum Centre (JSC) on technical characterization of the Proximity I to determine
whether this system can coexist with other systems in this band and what the coordination
rules would need to be. MTI fully supports this activity and by conducting this pilot
deployment, believes it can demonstrate the economic and social benefits available to
SRPMIC members through shared access to the 3.4 — 3.5 GHz band.


5.0       __OBJECTIVES

A summary of the objectives of this program of research and experimentation then
follows:

Mountain Telecommunications Inc. Objectives

      *   demonstrate economic and social benefits of Fixed Wireless technology
      *   evaluate customer acceptance of services provided
      *   demonstrate progress towards becoming facilities—based CLEC
      *   evaluate system performance in a real network environment
      +   investigate service, application and business opportunities
      *   develop staff knowledge on technology and associated functions/processes
      *   develop plans for product standardization, market introduction and deployment
      *   address regulatory aspects of wireless technologies

Nortel Objectives

      *   support regulatory and spectrum initiatives, including DoD/JSC technical project
      +   characterize system performance in US network and propagation environment
      +   confirm performance within operator‘s environment
      *   develop application and economic/business case scenarios
      +   identify and resolve product deployment issues
      *   address operational support and operations process issues


6.0       __CONTRIBUTION TO RADIO ART

This program of research and experimentation will enable MTI, Nortel and the industry to
evaluate and observe the application of wireless technology in providing wireline—


equivalent telephony services and the associated economic and social benefits. Fixed
Wireless systems such as Proximity I can be enablers for the provision of urban services
to under—served rural areas and true facilities—based competition, given the availability of
suitable spectrum.

This activity will also serve to demonstrate that commercial applications can coexist with
existing government or military applications in the same spectrum and that sharing
arrangements are technically feasible and should be encouraged.

Based on the track record of the Proximity I system (50,000+ subscribers in service in
15+ countries), MTI and Nortel are extremely confident in its ability to successfully test
and ultimately deploy this system in its service area in Arizona.


John Cespedes input (for reference):

I would like to start by explaining who Mountain Telecommunications,
Inc. is and what we are about. MTI was organized in May of 1997 with a
primary objective of providing telecommunications services to the Salt
River Pima Maricopa Indian Community (SRPMIC) in Arizona, as well as
other rural residential customers. SRPMIC has approximately 65 members
without telephone service. These customers individually requested
service from US West and were informed that special construction charges
would be applied to the service in the amount of $3,000 per home. We
(MT]) have not seen any of the information given to the members from US
West this information was given verbally.

For these customers we plan to use Proximity I for servicing their
telecommunications needs. Financially the Proximity will cost
approximately 1/5 of the cost of a traditional copper build for these
homes. We currently have a DMS 500 commissioned and processing calis.
Our tower will be erected in the January — February time frame of ‘98.

Likewise, in the state of Arizona the Corporation Commission has
identified 15 geographic areas that currently are without a service
provider. We at MTI see Proximity | as the key to service in these
areas.

Along with the rural applications we have for the Proximity I, we are
also developing a marketing strategy for Phoenix. We see the ability to
turn up a "second line" quickly as a major marketing advantage to MTI.
Likewise, ISDN has been difficult to provision for the incumbent LEC, so
MTI, with the use of Proximity I, would have the ability to turn—up ISDN
circuits in a matter of days. This is a great advantage with the added
interest in tele—commuting and high speed access to the internet.

Thank you for the opportunity to present our plans for the Proximity
product and I look forward to your continued updates.


 EXHIBIT 5                     — ELEVATIONS

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 EXHIBIT 5— ELEVATIONS

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                                                                                                                                   188NMCoCocccxcxcct




                                                                                                                                                                                                          SADDLEBACK COMMUNICATIONS
                                                                                                                                                                                                               WEST ELEVATION
                                                                                                                                                              Proposed Antenna Tower
                                                                                                                                                        / K63—F1.Tof




                                                                                                                                              N
                                                                                                                                              /
                                                                                                                                       e                         3_IIIIIII MEez
                                                                                                                                                                              &
                                                                                                            72—1m.Choin Lnk   —/                                                       72—In.Chain Link
                                             Existing T2—in.                                                Fence                                                                      Fence
                                             Chaln Unk Fence
                                                                                                     West Elevation
                                                                                                 D      0           LJ        0     30 FEET

                                                                                                                SCAET20



    cave conrnot Bite si2zee
    NbJ\projectshmnetor ole\saddtat we.dgn




                                                                                      |
‘hbj/projects/motorola building/                               Jan.   23,   1998   12 ; 38 :33



Document Created: 2002-07-30 14:38:29
Document Modified: 2002-07-30 14:38:29

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