In 1962, the Federal Communications Commission (FCC) allocated broadcast spectrum in the 2.5 Gigahertz band that was reserved for use by educational institutions and nonprofit organizations to transmit "instructional" programming to local schools and colleges. This frequency allocation was referred to as "Instructional Television Fixed (as opposed to Mobile) Service" (or ITFS).

In 2005, in response to changes in technology and industry initiatives, the FCC adopted a new band plan that could be used for low power cellular operations, which are needed for two-way data networks. The new band plan is designated as the "Educational Broadband Service" (or EBS). The primary use of the spectrum has shifted from television to high-speed data networks.

ITFS and EBS are the two types of "educational broadcast spectrum" licenses. The eligibility requirements established by the FCC provide that a nonprofit corporation must be organized for educational purposes and must use the spectrum to distribute instructional materials to accredited public and private schools and colleges, which are referred to as "Receive Sites."

In the mid-1990s, Clarendon Foundation applied for and was granted ITFS licenses in 21 markets across the country. Those licenses were subsequently transitioned to EBS authorizations. The Foundation's primary educational program is providing free broadband wireless Internet access to accredited educational institutions.

As permitted by FCC regulations, the Foundation leases a portion of its EBS spectrum to wireless operators, including Sprint, Clearwire, Xanadoo, and CommSpeed. Under the terms of the spectrum lease, the wireless operator constructs and operates a mobile WiMAX network that uses Clarendon's EBS channels.

WiMAX is a new technology, which is similar to WiFi, that can cover an entire community. WiMAX uses the same cellularized network architecture as mobile phones. Operators are in the process of launching broadband wireless access networks at the current time. A number of Clarendon’s markets have not yet been constructed.

The FCC requires each licensee to provide “substantial service” in each market no later than May 1, 2011. Clarendon is working with the operators to deploy service and is committed to providing broadband connectivity to its Receive Sites schools before the regulatory deadline.

Clarendon is required by FCC regulations (47 CFR 27.1203) to provide “video, data, or voice transmissions to further the educational mission of accredited public and private schools, colleges and universities.” The Foundation uses its reserved spectrum on the WiMAX network to provide free wireless Internet access to Receive Site schools and colleges. The wireless operator connects Receive Sites to the WiMAX network via T-1 capacity transceivers.

Receive Sites agree to provide the free high speed Internet access to students enrolled in courses for academic credit, and to faculty members and administrative staff for in-service training and administrative traffic.

The provision of free service and free equipment is authorized by regulations promulgated by the Federal Communications Commission as a part of a spectrum leasing regimen. ITFS and EBS can be thought of as government benefit programs for the educational community. The provision of the free services and equipment to accredited educational institutions are regulatory requirements, for which the spectrum licensee does not receive any reimbursement or compensation. Clarendon also performs the maintenance and repair of the receive site equipment.