Women in Telecommunications May 21, 2007 Rich Motta CETF Treasurer/CFO

2 California Emerging Technology Fund  November 2005 SBC/AT&T and Verizon/MCI merger agreements approved by CPUC  Mission: To improve access to Broadband in the underserved communities  Established as a Nonprofit Public Benefit Corporation  $45M ($9M per year) over 5 years from AT&T  $15M ($3M per year) over 5 years from Verizon  Minimum of $5M focused on Telemedicine

3 CETF Board of Directors  Mike Peevey (C)President, CPUC  Barbara O’Connor (S)Professor, California State University, Sacramento  Rich Motta (T)Consultant, Retired VP AT&T  Martha EscutiaAttorney, Manatt, Phelps, and Phillips LLP (former State Senator)  David EunVP, Google  Joe GrossPresident & CEO, Sustainable Systems Inc  Barb JohnstonExec Dir, California Telemedicine & eHealth Center  Deborah KaplanPrincipal, Deborah Kaplan Consulting  Jim KirklandSenior VP, Covad Communications  Lloyd LevineAssemblymember, California State Assembly  Mike VolpiSenior VP, Cisco Systems  Carol WhitesidePresident & CEO, Great Valley Center (C) Chairperson (S) Secretary (T) Treasurer

4 CETF Mission Provide leadership statewide to minimize the Digital Divide by accelerating the deployment of broadband and other advanced communications services to underserved communities and populations … this will be accomplished by making investments in programs and projects to improve access, affordability, adoption of applications, and accessibility to broadband

5 Digital Divide … Where Is It?  Research and data reinforce that “Divide” is narrowing  Availability of low cost DSL has helped narrow the “Divide”  “Divide” still exists for select communities/populations –Consumers 65 and older –Consumers with annual income less than $30K –Consumers with less than a high school education –Consumers with Limited English Proficiency –Consumers that reside in “rural/remote rural” areas –Consumers with disabilities

6 CETF Strategic Plan Initial “focus” of funding … - Rural and Remote Communities - Urban Disadvantaged Neighborhoods - Communities of People with Disabilities

7 Rural and Remote Communities  Need to help “facilitate” the deployment of broadband infrastructure where none exists  Satellite Broadband is not an affordable option for most consumers in rural/remote rural areas  Need to help identify and remove “barriers to entry and operation” for new service providers … i.e., the availability of existing towers for use by new wireless broadband service providers  Will seek to identify and leverage existing “publicly funded” infrastructure that can support the deployment of broadband  Will “leverage” Telemedicine as an anchor application to justify the deployment of new infrastructure … make bandwidth available to support other applications including “commercial” use by entrepreneurs

8 Urban Disadvantaged Neighborhoods  Focus efforts on “affordability” and “availability” of computing hardware, software, training, and technical support AND the “availability” of applications that would motivate consumers to join online society  Embrace and engage the youth … get them online first, use them to support other’s efforts to go online  Leverage public housing developments … establish centralized computing resources to support introduction  First focus on those that “want but do not have” … once they are online they can act as “change agents” to get those who “don’t know they need” involved

9  Every project and program that CETF funds needs to address accessibility for people with disabilities  Focus on making hardware and software more “accessible”  Focus on “universal design” standards that all hardware and software vendors can incorporate into their products and services  Increase awareness that a major portion of the “internet” is inaccessible to individuals with disabilities … information providers need to take steps to correct Communities of People with Disabilities

10 $60M Funding Will Not Go Far … We Need 1000 Times This Amount To Eliminate The Digital Divide  CETF will attempt to leverage the $60M of “seed” funding through matching $$$’s from other public/private foundations and government agencies  CETF will seek joint funding on every project that it funds  CETF will seek to leverage the $60M into at least $250M

11 Seeking Input From Community  Held regional meetings with Community Based organizations and agencies –What are their greatest needs –What is working … what is not –What are the “lessons learned” from the activities of the last 10 years –What projects and programs are best candidates for expansion or replication

12 Seeking Partnerships  How can we leverage the efforts of other public and private foundations and funds  How can we leverage the efforts of local, state, and federal governmental agencies to fund (grants and loans) the deployment of broadband technology in the underserved communities … i.e., the FCC grants focused on “Telemedicine Infrastructure”  How can we get more business players in the “technology” sector to see the value in investing in the deployment of broadband technology  Need to institute a “ConnectKentucky” like effort where we help facilitate the matching of consumer “need/demand’ with technology vendor's willingness to invest

13 Initial Funding Decisions  Looking for larger projects that will have measurable multi- year impact on the targeted population … i.e., FCC Telemedicine Grant  Open to funding existing projects that have a proven track record of success … will fund to sustain, expand/scale, or replicate  Have “invited” proposals based on fact finding for funding in May/June 2007 timeframe  Will announce an initial “open” funding window in May/June 2007 timeframe with funding decisions made by 1Q 2008  Will initially seek to fund projects and programs that can deliver early success  Will not entertain unsolicited grant requests … will consider only grant requests that “fit” the strategic plan

14 CETF Has A Monumental “Challenge” To Undertake  CETF can not do it alone … it will take the combined efforts of all the public and private players to make it happen  CETF wants to be additive … it wants to build off the existing successes  CETF wants to be able to show measurable progress over the next 5 years so that other organizations are encouraged to invest  CETF wants to lay the groundwork for a process and structure that will be sustained beyond the initial 5 year commitment by the funding organizations