A NEW USER’S GUIDE

PRIVATE LTE NETWORKS

By Ira Keltz and Eric DeSilva
 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

WHAT CAN PRIVATE LTE DO FOR ME?
“LTE” is shor t for “Long Term Evolution.” LTE is the four th
generation of mobile technology, which is currently being used
by all US mobile phone providers to connect smar tphones 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 cer tain 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.
03  |  PRIVATE LTE NETWORKS: A NEW USER’S GUIDE
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
shor t 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
cer tain 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.
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 suppor t private LTE
networks. Fur thermore, 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 3550-3700 MHz band, but
once finished, it offers an unprecedented
spectrum opportunity for small, privately-
owned networks. Under the existing
rules, which are still in flux, the band is
divided into 15 10-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 (GAA) 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. GAA 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 GAA 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 GAA 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 GAA operation.
If you determine that a PAL is required
to protect your private LTE investment
however, you may need to par ticipate 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

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 2018. If past
history holds true, however, par ticipation
in FCC auctions can be complex − the
FCC’s forms to par ticipate 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 par ticipation 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 par ticular relevance here, there
are por tions of the 5 GHz Unlicensed
National Information Infrastructure or
U-NII bands that are available on an
unlicensed basis and can suppor t Private
LTE networks. More specifically, the
U-NII-1 (5150-5250 MHz) and U-NII-3
(5725-5850 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
05  |  PRIVATE LTE NETWORKS: A NEW USER’S GUIDE
Tier 1 (Highest)
US Government Opera-
tions and grandfathered Naval Ship-Borne Radars
commercial facilities
Tier 2
Up to 7 Priority Access PAL
Licensees per area
(lowest 100 MHz of band)
Tier 3 (Lowest)
GAA
GAA
General Authorized
Access users authorized
on an as-available basis
3550 MHz
Figure 2: CBRS spectrum options
to the oppor tunities 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 (824-
894 MHz), the Personal Communications
Grandfathered Wireless
Broadband Licensees
Commercial FSS Earth Stations
Federal Ground-Based Radars
PAL
PAL
GAA
GAA
GAA
GAA
3600 MHz 3650 MHz 3700 MHz
Service band (1850-1990 MHz), the
Advanced Wireless Service bands (1710-
1780 MHz/2110-2180 MHz; 2000-2020
MHz/2180-2200 MHz) and the Broadband
Radio Service band (2500-2690 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
par tition/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.
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
cer tain 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 cer tain
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, proper ty 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.
06  |  PRIVATE LTE NETWORKS: A NEW USER’S GUIDE
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 star t until the latter half of 2018 at the earliest
(although GAA 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 par titioning 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 par ty.
Ease of Acquiring Spectrum
CBRS GAA 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 par ticipating 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).
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 megaher tz 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 megaher tz of PAL spectrum in any census tract (there is
no formal limit on GAA 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 megaher tz 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 par ties
should only plan on being able to obtain a single 5 or 10
megaher tz 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

ABOUT US FOR MORE INFORMATION

DLA Piper is a global law firm with lawyers located in more For more information about private LTE systems,
than 40 countries throughout the Americas, Europe, the please contact:
Middle East, Africa and Asia Pacific, positioning us to help
clients with their legal needs around the world. Find out more Ira Keltz
at www.dlapiper.com. Principal − Engineering
T +1 202 799 4412
ira.keltz@dlapiper.com

Eric DeSilva
Par tner
T +1 202 799 4112
eric.desilva@dlapiper.com

www.dlapiper.com

DLA Piper is a global law firm operating through DLA Piper LLP (US) and affiliated entities. For further information please refer to www.dlapiper.com. 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 | MRS000099192