412 - 414MHz Update

To: FCS Business Radio

Date: 22nd November 2007

• Secured BBC contracts for digital switch over

• Acquired National Grid Wireless for £2.5Bn, subject to Competition Commission approval

• Acquired BT’s Satellite Broadcast Services for £25M

• Secured numerous new contracts including mobile data trials for Police

• Two of our shareholders acquired Airwave for £1.9Bn

Arqiva update

• 4000 new transmitters on 1200 sites

• New antennas, power etc

• Mast strengthening and replacement

• £500M investment

Digital Switch Over

Spectrum Award - reminder

• 412MHz to 414MHz paired with 422MHz to 424MHz

• Technology and application neutral

• UK wide licence

• 15 year initial term

• Obligations not to interfere with other users including MOD

• Tradable

Vision - unchanged

• To work with the industry to realise the benefits that can be derived from utilising the spectrum

• To enable the deployment of the most appropriate mix of technologies to achieve the above

• To enable the industry to offer new products and services to the market

Band Management

• First allocation granted for Tour de France

• Customer – Ofcom, managed by JFMG

Band Management

• Approximately 30 enquires received

• 4 not technically feasible

• 1 allocated T&D licence by Ofcom

• 1 lost end customer

• 6 in active discussions

• 3 declined due to conflict of interests

• Remainder awaiting outcome

• Comment: Surprisingly low level of interest and long sales cycle

Private Network Provision

• Approximately 30 enquiries

• 1 lost to alternative Tetra supplier

• 4 retained analogue

• 8 offers submitted, awaiting outcome

• Remainder in pre-sales stage

• Comment: Customers unaware of digital PMR, long sales cycle

Public Access Network Provision

• No plans to build a national public network

• Still considering metropolitan PAMR networks, challenging business case

• Actively pursuing opportunities with the Olympics

• Wideband data also under consideration

www.arqiva.com/publicsafety

Contact : david.green@arqiva.com: adrian.noad@arqiva.com