UPDATED NATIONAL EVALUATION PDF by lptvcoalition

FALL 2018 NATIONAL VALUATION MODEL

How We Evaluate And Price Stations, Licenses, & Permits Airwaves USA conducts evaluations based on original marketplace research developed by our related enterprise, the LPTV Spectrum Rights Coalition. The evaluation reflects Fall 2018 comp's as a base pricing, and a Next Gen TV analysis based on the FCC's new Next Gen TV rules. AIRWAVES USA, INC - BROKERAGE LISTING - NOVEMBER 2018

FALL 2018 NATIONAL VALUATION MODEL

OPâ&#x20AC;&#x2122;S

TYPE

ON-AIR

CLASS-A

OPERATING ON-AIR DIGITAL STATION

ON-AIR

LPD-LIC

OPERATING ON-AIR DIGITAL STATION

SILENT

LPD-LIC-S

TO BE BUILT FILED TO BE FILED

TO BE SETTLED

TO BE SHARED

LPD-CP

EXPLANATION

LICENSED, BUILT, AND SILENT STATION, WHICH CAN QUICKLY BE OPERATIONAL AUCTION & REPACK SURVIVING ANALOG OR DIGITAL CONSTRUCTION PERMITS, OR NEWLY ISSUED DISPLACEMENT PERMITS

LPD-APP

RECENTLY SUBMITTED DISPLACEMENT APPLICATION. WILL BE ISSUED OR REJECTED IN 2018

LPD-DISP

AUCTION & REPACK DISPLACED ANALOG OR DIGITAL CONSTRUCTION PERMITS WHICH NEED TO FILE IN NEXT WINDOW.

LPD-MX

MUTUALLY DISPLACED APPLICATIONS OF TWO OR MORE STATIONS APPLYING FOR THE SAME CHANNEL. THEY MAY FILE SETTLEMENTS FOR A CHANNEL SHARE PERCENTAGE, OR THEY MAY END UP HAVING TO BID TO GET THE ENTIRE CHANNEL.

LPD-CS

A CHANNEL SHARE LICENSE WITH 100% OWNERSHIP OF A PART OF THE 6 MHZ CHANNEL. TBD BY Q1-2019.

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FALL 2018 NATIONAL VALUATION MODEL

AIRWAVES USA has developed a grading system and pricing model to make it easier to compare and evaluate FCC TV station licenses and permits in different market sizes and locations across the country. This is a totally objective analysis and does not take into account the quality of the programming the station airs, nor does it consider whether or not the station is profitable. What the Airwaves USA Grading System does do is to compare the type of license/permit, the status of the license/permit, and the status of its Next Gen TV deployment. And it provides the basis for a “price range”, while offering the buyer a way to quickly compare similarly situated FCC TV station licenses and permits. 3 AIRWAVES USA, INC - BROKERAGE LISTING - NOVEMBER 2018

FALL 2018 NATIONAL VALUATION MODEL

TYPE

EXPLANATION

PRICE RANGE

CLASS-A+

CLUSTERs, CORRIDORs, FIRST ADJACENTS, OR NEXT GEN TV

$2.50-$1.75 PER POP

CLASS-A

SINGLE LICENSED PRIMARY PROTECTED OPERATING ON-AIR 6 MHZ STATION

$2.00-$1.25 PER POP

LPTV LD+

CLUSTERED, CORRIDORED, PAIRED, AND OR FIRST ADJACENTS

$1.75-$1.25 PER POP

LPTV LD

SINGLE LICENSED OPERATING ON-AIR OR SILENT 6 MHZ STATION

$1.50-$1.00 PER POP

A-

LPTV LD CP

NEW OR AUCTION/REPACK SURVIVING CONSTRUCTION PERMIT (CP)

$1.00-$0.50 PER POP

LPTV LD DISP CP

CP DISPLACED BY THE AUCTION OR REPACK, MAY APPLY IN NEXT FILING WINDOW IN EARLY 2019

$0.75-$0.25 PER POP

LPTV LD MX

ONE OF MULTIPLE DISPLACED STATIONS FILING FOR SAME CHANNEL ASSIGNMENT. WILL GET TO REFILE, GO TO AUCTION, OR OBTAIN NEW CP

$0.75-$0.25 PER POP OR MORE

GRADE AAA AA A+

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FALL 2018 NATIONAL VALUATION MODEL

National Pricing Model AIRWAVES USA has developed a national pricing model for all Class-A and Low Power TV (LPTV ) licenses and permits. This is a refinement of our Grading System, and provides both the seller and buyer a standardized method of valuation. The Pricing Model was developed to work for both large and small markets, for both primary and secondary spectrum rights holders, and to show a logical sequence of valuation based on actual build-out of the property, and implementation of the services. â&#x20AC;&#x2039; The standard method of valuation for FCC LPTV TV licenses and construction permits is based on "TV pops", which are the individual people with your FCC licenses' protected coverage contour. We then use our proprietary Pricing Model, to go deep into the details of the license or permit for sale. This provides both the seller and buyer the opportunity to compare apples to apples.â&#x20AC;&#x2039;

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FALL 2018 NATIONAL VALUATION MODEL

We then use this Pricing Model, to go deep into the details of the license or permit for sale. This provides both the seller and buyer the opportunity to compare apples to apples. Based on 2018 market by market comp's, Airwaves USA has determined that the base price for an LPTV is $0.50/pop, and for Class-A's, it is $1.00/pop. The Fall 2018 "base price" for Class-A's is $1.00/pop, and for LPTV it is $0.50/pop. We then add to the Base Price any of the "upgrades" or build-out which have been completed. LPTV EXAMPLE:

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FALL 2018 NATIONAL VALUATION MODEL

CLASS A EXAMPLE:

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FALL 2018 NATIONAL VALUATION MODEL

Maps, Pop Counts, & Visualizations AIRWAVES USA uses the industry standard Probe 4 Professional Signal Propagation Software under license from V-Soft Communications. Probe 4 uses the standardized FCC engineering criteria for the filing of actual FCC license and permit applications. AIRWAVES USA uses Probe 4 to generate coverage maps for both current digital TV (ATSC 1.0), and for Next Gen TV (ATSC 3.0), and we utilize the 2017 US Census estimates. We do not provide an engineering study for either the seller or the buyer, as they both should rely on professional consulting engineers for any study which they might need for this transaction. AIRWAVES USA provides a standardized engineering analysis and mapping only as a reference and guide for the negotiation between the parties.

AIRWAVES USA, INC - BROKERAGE LISTING - NOVEMBER 2018

FALL 2018 NATIONAL VALUATION MODEL

ATSC 1.0 Coverage at the 51 dBu

ATSC 3.0 Coverage at the 28 dBu

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FALL 2018 NATIONAL VALUATION MODEL

Next Gen TV Authorization For Class-A & LPTV AIRWAVES USA computes a projected ATSC 3.0 Next Gen TV population analysis at the 28 dBu contour. For Next Gen TV this contour is the operational effective reach for new mobile TV services, preferably using UHF spectrum. In most cases the properties Airwaves USA is offering for sale show a 10-75% increase in pop counts. Stations located on the "rim" of a DMA show the largest increase in pop counts. â&#x20AC;&#x2039; The FCC has already authorized the rules for Class A's and LPTV Next Gen TV stations, and they are very favorable.

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FALL 2018 NATIONAL VALUATION MODEL

Displacement Funding Of $150 Million In 2019/2020 for LPTV & Translators AIRWAVES USA anticipates that many of the properties it is selling will be eligible for displacement funding which Congress passed earlier in 2018. There are about 1800 eligible entities, and that number could be far less when the FCC uses the criteria Congress established. Airwaves USA does not at this time know for sure which stations will qualify. The FCC has issued a catalog of eligible expenses, and is currently asking for comments about it. The average amount per eligible displaced permit or license could be as high as $80,000 each. Some will be a lot more, and many a lot less. The rules and funding will be available in mid 2019. AIRWAVES USA, INC - BROKERAGE LISTING - NOVEMBER 2018

FALL 2018 NATIONAL VALUATION MODEL

Multi-Station Clusters & Next Gen TV Corridors AIRWAVES USA has assembled numerous multistation clusters of stations which can be utilized to both replicate a full power station coverage, and to create coverage corridors along major highways across the USA. Many of these were filed for in the 2009 LPTV rural filing window. And most of these corridors have low TV pop counts. But when the potential next gen TV mobile services are considered, these are winning combinations of channels.

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