Strike Three for White Space Device

For Immediate Release

March 28, 2008

Statement by Microsoft

REDMOND, Wash. — March 28, 2008 — The testing phase of the Federal Communications Commission (FCC)’s white spaces rulemaking continues to provide the FCC with the data it needs to make an informed decision. Microsoft Corp. believes that the FCC’s final report will confirm that the unlicensed use of white spaces will bring exciting new as well as needed technologies such as mesh networks, broadband access in remote areas, wireless hot spots and other broadband devices and services.

Microsoft, along with other companies, took the extraordinary step of submitting test devices to the FCC to help the FCC gather information and establish final rules. The Microsoft devices were designed and developed by a third party for white spaces research purposes only and are not production or go-to-market devices. The Microsoft device has been delivering meaningful results over several weeks but unexpectedly shut down on March 26.

Although this is disappointing to us, we have every confidence that the FCC has many avenues available to finish gathering the information it needs to develop final white spaces rules and allow a variety of services and devices to effectively use the white spaces. The FCC has tremendous technical expertise and will continue to rely on its own substantive knowledge. Second, it is currently testing other devices and will be able to obtain the necessary information from those devices. It can also undertake its own testing with conventional equipment. Third, before any device enters the marketplace the FCC will put that device through its certification process and make its own determination that the device will not interfere with existing licensed users such as broadcast and wireless microphone operations.

Microsoft will continue to work with its partners in the White Spaces Coalition to provide the FCC with all the support it needs during the rule-making process, including further exploration of the recent proposal made at the FCC that reflects some of the coalition’s thinking on the use of spectrum-sensing technology and beacons.

White spaces technology will transform the way Americans access and use the Internet, regardless of where they live. We look forward to the FCC’s adoption of final rules that will enable innovators to bring new broadband products and services to the market.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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