Top 5 Issues to Consider in Launching a Broadband Cooperative West Virginia Economic Development Conference / January 23, 2018

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Get Connected www.bowlesrice.com/practices-Broadband_Co-ops.html Forming and launching a Broadband Co-op involves legal and practical experience in: Entity formation and corporate governance Public and private finance Telecommunication laws and regulations Government relations Construction Also required is a deep understanding of: Corporate formalities and statutory compliance Technology Negotiation The Bowles Rice Broadband Co-op Team has the knowledge to guide you through the entire process of Co-op formation.

Consideration #1: Scope of Network Focuses on “Where” and “How Big?” WV Broadband Maps at www.broadband.wv.gov Identify Target Population for Broadband Access Identify Contiguous Broadband Resources Know your Topography for Broadband Design

Consideration #2: Preferred Technology Focuses on the type of equipment the network will use Cable (e.g. DSL, fiber-optic) Wireless (e.g. 4G Network, White Space Internet) Combination

Consideration #3: Broadband Co-op Model WV Pilot Project for Municipality and/or County Co-op Non-Profit Co-op Three municipalities or counties (individually, or in conjunction) Potential for access to federal funding Broadband Enhancement Council to develop guidelines Legislature must approve Cooperative Association For-Profit vs. Not-For-Profit Minimum of 20 or more “qualified persons” “Qualified person” – a person who is engaged in the use of internet services, either in an individual capacity or as a business Must adhere to formation and governance requirements

Consideration #4: Funding Sources Available seed money for consultants/feasibility study Grants U.S. Department of Agriculture Grants Federal Communications Commission Grants Matching Funds Tax Credits Community Development Tax Credits Public/Private Partnership Options Federal Agencies Healthcare Pharmaceuticals, Providers and Insurers Education, Humanities and the Arts, Tourism Local Funding National/Community Banks Bonding

Consideration #5: To Own Or Not To Own Operate, manage and maintain Sell or enter Service and Maintenance Agreement with established provider

The Bowles Rice Broadband Co-op Team

For more information, contact: Peter Markham Team Leader, Bowles Rice Broadband Co-ops (304) 347-1107 pmarkham@bowlesrice.com