| WHAT IS SPECTRUM? |
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The range of electromagnetic radio frequencies used in the transmission of sound, data and television.
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| WHY IS CANTOR FITZGERALD CREATING THE CANTOR SPECTRUM EXCHANGE? |
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A. In developed industrial countries, radio frequency spectrum and tower resources are greatly underutilized. This has resulted from decades of accumulated spectrum in unused spectral bands, inefficient government spectrum auctions and a lack of clear policy regarding RF deployment. Now, with the exploding interest in wireless services of all kinds, industry and government representatives are searching for more efficient, persistent alternatives to government auctions that will enable faster, more strategic deployment of wireless communications resources. In the United States, some spectrum usage studies indicate that in major urban markets, about 5-6% of the spectrum is being utilized. In mid-tier markets, usage hovers around 3%. And, in rural markets, usage is less than 1%. With an overabundance of spectrum and a shortage of deployed services, the need for a market-driven exchange to speed multi-band wireless services is critical. The NTIA has also noted, in a recent report, that the U.S. currently stands 13th in broadband penetration among industrialized nations. As the leading economy in the world, and the pioneer in communications technologies, this is an egregious statement. The U.S. market has not been properly opened for bidding and leasing of unused licenses that could provide government agencies, local municipalities, and businesses of all sizes to unlock the value of America's rich wireless resources. Similarly, the global telecom market faces the same overriding issues: a glut of capacity in the RF spectrum that can serve the needs of customers not reached by traditional wireline technologies and services, such as DSL, cable, dedicated ISDN, T-1/T-3 (E-1/E-3), or satellite. All of the above serves the mission of Cantor Spectrum & Tower Exchange, which is to create market value from unused or under-utilized resources.
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| WHY USE CANTOR TELECOM? |
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Cantor Fitzgerald operates the most sophisticated market for trading in the world: the Global Fixed-Income Market, which conducts more than trillions of transactions per year. Cantor Telecom has operated as a divison of Cantor Fitzgerald since 2001, providing telecom resources for the company's world-class trading network and identifying opportunities for the company to leverage its trading expertise in the telecom industry. The Cantor Spectrum & Tower Exchange represents such an opportunity, and it is managed by some of the leading figures in the telecom industry, including Darrin Mylet and Brent Wilkins, two veterans of the global telecom market.
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| WHAT CAN CANTOR FITZGERALD TELECOM DELIVER? |
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The Cantor Spectrum Exchange and Cantor Tower Exchange provide secure, rapid access to premium spectrum and tower resources at the best possible price. Cantor is a neutral third-party provider of information and trading facilities online. Buyers and sellers have autonomy over their transactions, from listing to bidding/asking to final execution, and have the right to remain anonymous. The flexibility of the exchange enables buyers and sellers to view a wide range of spectral bands and resources over various geographies and applications.
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| WHAT ARE THE KEYS TO MAKING SPECTRUM TRADING SUCCESSFUL? |
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- Neutrality - We don't set the price, we simply create a trading platform for all frequency bands and tower assests
- Transparency - From Bid/Offer to Execution, the platform is a secure environment putting users in control to execute their overall business plans
- Functionality - Different spectrum bands and tower assests have different characteristics over different applications and geographies, our platform is flexible and will be key to our success over time
Simply put, the Cantor Spectrum Exchange trading platform enables operators and vendors to work on what matters most: their business. Capital investment, operational expertise, equipment platforms choices, and licensed spectrum use are key ingredients to successful operations and solutions.
For sellers, the Cantor Spectrum Marketplace is one of the most efficient and secure ways to get the best price for its valuable asset. For buyers, Cantor Spectrum Marketplace is the faster way to get coveted and underutilized spectrum. For global telecoms, the Cantor Fitzgerald Spectrum & Tower Exchange will be seen as one of the key stimulators of wireless broadband.
Cantor will be engaged in the global electronic brokerage of spectrum rights between counterparties and will be the premier data resource for the global wireless industry.
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| HOW MUCH DOES CANTOR CHARGE? |
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The Cantor Spectrum & Trading Exchange is priced on a subscription and per-transaction basis. The exchange employs a least-cost methodology for the transfer of spectrum rights between parties. Service fees range from 1-15% of the transaction value, based on the requirements of the counterparties.
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| DOES THE BUYER HAVE TO DISCLOSE THEIR NAME TO BID ON SPECTRUM? |
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No. The Cantor Spectrum exchange will protect the anonymity of the buyers/lessees via name give-up option.
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| WHAT IS THE DIFFERENCE BETWEEN A TRADER AND AN IMTERMEDIARY? |
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Spectrum traders and intermediaries should be treated differently:
A trader takes an "ownership" position in spectrum. An intermediary does not; it merely mediates between buyer/seller and lessor/lessee.
Pure intermediaries should be shielded from independent liability for transmitting users' or licensees' noncompliance.
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| WHY SHOULD WE USE CANTOR TELECOM AND NOT GO DIRECT? |
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- Unbiased by ownership or spectrum/tower needs
- We are the Neutral counterparty between market participants and have no vested interest in transaction results.
- Becomes buyer to all sellers and seller to all buyers.
- Create and maintain market integrity
- Allows for confidentiality and non-disclosure
- Time-based price discovery for business modeling
- Market, time, architecture and frequency based spectrum valuation
- Why do companies put their stock assets on the NYSE and not sell direct? Simple, they want their assets to be assessable to an entire market and be immediately liquid.
- Game theory suggest sellers get a higher price when more partcipants are aware of offer vs. smaller groups of buyers.
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