1xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2011, All Rights Reserved.

www.xgtechnology.com

Sept 2012

Cognitive Radio Policy Update

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 2

► 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

Demand Outstripping Supply

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 3

► 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.

New Approach to Spectrum

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 4

► Mobile communications are gasping for capacity

► Mobile bandwidth demand exploding

► Wireless network capacity is spectrum limited

► Yet spectrum (overall) is utilized inefficiently today

Rethinking Spectrum Policy

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 5

► 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

Spectrum Inefficiently Used

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 6

Recent Developments

“identify immediately 1,000 MHz of Federal spectrum for sharing with the private sector”

PCAST Recommendation to the President, March 25th 2012

“The FCC should spur further development and deployment of opportunistic uses across more radio spectrum”

FCC Broadband Report to Congress, January 2011

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 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

The information presented herein is confidential and subject to change without notice. xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2010, All Rights reserved. 8

► 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

Why is this important?

9xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2011, All Rights Reserved.

www.xgtechnology.com

Thank You

Chris Whiteley, VP Bus DevT: 941-953-9035M: 303-358-2175chrisw@xgtechnology.comwww.xgtechnology.com

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