August 2010 Jeff Reel

KANSAS CALIFORNIA FLORIDA COLORADO INDIANA ILLINOIS CONNECTICUT MASSACHUSETTS RHODE ISLAND OREGON OHIO WISCONSIN IDAHO TEXAS LOUISIANA MARYLAND MICHIGAN MISSOURI NORTH CAROLINA VIRGINIA MINNESOTA NEW YORK OKLAHOMA WASHINGTON UTAH MAINE NEW JERSEY GEORGIA NEW MEXICO SOUTH CAROLINA 2

Geography: Rural, Mountainous = Costly to Install Facilities ILEC’s Have Strong Legislature Lobbyists Cooperation/Collaboration Challenge Among State Agencies, Public and Private Concerns 3

4 American Recovery and Reinvestment Act  Tax Cuts and Spending…  $15B in Supplemental Investments  $7.2B for “…complete Broadband and Wireless Internet Access”  Department of Commerce National Telecommunications and Information Agency $4.7B Broadband Technology Opportunity Program  Department of Agriculture Rural Utility Services $2.5B Broadband Initiatives Program

KINBER KINBER Board and 501(c)3 organization PennREN project team 6 Advisory Councils Advisory Councils Board Members Bucknell University Carnegie Mellon University Drexel University Lehigh University University of Pittsburgh University of Pennsylvania The Pennsylvania State University Pennsylvania State System of Higher Education Commission for Community Colleges Hospital and Healthcare Association of Pennsylvania Association of Independent Colleges and Universities of PA Potential Partners Intermediary Units, PA Economic Development Assn, PA E-Health Initiative, Hershey Medical Center, public television stations, UPMC, Temple, University of Scranton, MAGPI, 3ROX, Fibertech Networks, Ciena, Juniper Systems and other private sector providers KINBER Organization Staff  Executive Director  3 Network Engineers  Administrative Support KINBER Organization Staff  Executive Director  3 Network Engineers  Administrative Support PennREN Support Resources  Project Mgmt. Support  Compliance Support PennREN Support Resources  Project Mgmt. Support  Compliance Support

7 Subject to change at construction

Capital Budget - $128,958,031  Matching Funds - $29,297,353  Federal Stimulus Funds - $99,660, Strands Constructed by Fibertech  48 Strands to KINBER for PennREN  1696 Route Miles  Fibertech to Maintain Fiber 13 Optical Regeneration Service Nodes 49 Service Distribution Access Nodes Capital Budget - $128,958,031  Matching Funds - $29,297,353  Federal Stimulus Funds - $99,660, Strands Constructed by Fibertech  48 Strands to KINBER for PennREN  1696 Route Miles  Fibertech to Maintain Fiber 13 Optical Regeneration Service Nodes 49 Service Distribution Access Nodes 8

9 Classic Commodity Internet at Bulk Rates to Members Access to National R&E Backbones Shared Pennsylvania R&E Backbone Private Network Creation Between Members

Special Award Conditions  We weren’t expecting Environmental Assessment requirement  Good news that five of five findings for “No Significant Impact”  Awaiting NTIA review of Report before construction can begin Reporting : Multiple Drivers in NOAA, NTIA  Formats (still) evolving  Slow to answer when requesting clarification Resolution of KINBER-Fibertech Relationship  Sub-recipient versus Vendor determination Method of Satisfying Non-Discrimination Grant Condition (Open Access) 10

KINBER Creation  Establishing an Office Location  Staff Creation and Hiring  Creation of Policies to meet Normal Business plus Federal Requirements  PennREN Services Catalog  Definitions, Rate Structure, SLA’s Time Commitment  Approached by multitude of vendors/suppliers wanting to play  Membership and outreach campaigns  Build coalition of future subscribers  Defend that PennREN is NOT a last-mile competitor in Pennsylvania 11

Institutions of higher education will have affordable access to scalable high-speed broadband capabilities with connections to national research institutions and networks. Higher education networks will be connected to preK-12 education networks to facilitate a more seamless, collaborative, and higher quality learning environment to empower the development of knowledge workers, citizens and Commonwealth leaders. Health care entities will have access to the capabilities to expand linkages to world- class medical research and clinical case institutions to improve the quality and efficiency of medical care across the Commonwealth. Local economic development organizations will have access to network capabilities and capacity through regional collaborative partnerships to advance Keystone Innovation Zones, workforce development opportunities and other sustainable economic development initiatives. 12