1. SUMMIT PREVIEW 2011 Graham Richard - Mayor of Fort Wayne, 2000-2007 Henry Pye - Velocity Utility Management Services Galen Updike - President RTC & Telecommunications Development Manager GITA – Arizona Jim Baller - The Baller Herbst Law Group, P.C. 1

2. Public/Private Partnerships for Broadband Graham Richard Fort Wayne, IN Mayor 2000-2007 2

3. Outcomes  How do we create a commitment for public/private broadband partnerships?  How do we leverage existing resources?  How do we build financial support for a fast, agile, smart city? 3

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5. “The jobs are going to go where the best-educated workforce is with the most competitive infrastructure and environment for creativity and supportive government” -John Chambers CEO Cisco Systems Source: “The World is Flat”, pg. 323 5

6. ConveneConnectCollaborate 6

7. BEG BORROW BUY BUILD 7

8. Invest in Infrastructure Libraries Airport Sewer/Water Streets Broadband Schools Parks Greenways Universities 8

9. FAST AGILE SMART CITY GOVERNMENT 9

10. ACE Link Broadband Network  87 Schools  3,000 Teachers  54,000 Students  First community in Indiana to link all schools with broadband. 10

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12. Broadband  900 New Jobs  Passing 132,000 Homes & Businesses FTTP – Fiber To The Premises 12

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15. iTeams 21 st Century Scholars iTeam Coordinator City Government iTeams Education iTeams Net Literacy E-Learning Medical iTeams Sister City Connects Private Sector iTeams Service iTeams United Way Youth Day of Caring ZOOM Hearing Impaired Virtual Medicine (Camera) Intelligent Traffic Control Digital AV Bio-Fuel Museum Consortium HAP Medicare Internet Training 15

16. Matthew 25 16

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18. Smart Homes VZ Network BHR ONT with MoCA Traveling Customer Wireless-connected thermostats can save 10- 15% off energy costs. 18

19. AGGREGATE DEMAND LEVERAGE PUBLIC PRIVATE FINANCING 19

20. SMART CITY BOND TAX INCREMENTAL FINANCING BONDS SEWER BONDS 20

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22. Tomorrow’s Community It’s unclear exactly what tomorrow’s community will be… However, it will not be defined by a single technology or service Instead, a collection of services and technologies will redefine what a community is and how it operates 22

23. Tomorrow’s Community Edge Devices Internet Access Cloud Computing 23

24. Edge Devices Devices connected to and enabled by Internet Vast majority of these devices will be extremely simple with little more intelligence than contemporary models – Simple purpose specific devices that perform basic tasks with minimal communications E.g.: thermostat, motion detector, access control door – Other high bandwidth, flexible “portal” devices with far less processing power and memory than today’s counterparts E.g.: televisions, tablets, phones

25. Internet Access Multiple networks providing connections to the Internet – E.g.: Zigbee, Z-wave, 802.11n, 4G, xDSL, DOCSIS, FTTP Unified secured communications balancing – Purpose specific devices: Telemetry and control – Portals: High-bandwidth entertainment and communications

26. Cloud Computing Software as a Service (SaaS) – Software, computing, diagnostics and data storage are all provided by the cloud – The cloud powers the purpose specific and portal edge devices

27. Tomorrow’s Community Communications – Modern technology has complicated, not simplified, communications between management and residents Where we once had one phone number, we now have multiple numbers, email addresses, Facebook, text, web portals, etc. – Hopefully, this will soon be simplified with unified communications that streamline “basic” communications The cloud “knows” user’s location and available devices and verifies delivery

28. Tomorrow’s Community Control – Simplify complexity and instrumentality of control – If a device is connected to the Internet and controlled by the cloud, do you even need instrumentality? Resident watches movie in amenity area media room – Residents own portal device – Request = reservation = acknowledgement = access control= media = audio-video = lights Apartment air-conditioner is low on coolant – Measurement = maintenance request = order = schedule = appointment = acknowledgment

29. Tomorrow’s Community We have all been told how services and technology will simply our lives. We hope that edge devices, internet access and cloud computing can finally realize this promise.

30. Galen Updike President RTC & Telecommunications Development Manager GITA – State of Arizona An Approach for Planning Broadband in Rural America A conversation about challenges, goals, and plans April 12, 2011 30

31. National Broadband Map – All Types - Coverage 31

32. Coverage by 2 Major ILEC’s in Western America 32

33. Arizona TELCO Middle Mile Arizona’s ILEC owned Middle Mile Note: - Stranded runs - Lack of loops. - Lack of redundant paths - Minimal Fiber Interconnection between ILEC areas Law of Supply and Demand applies to End-user costs for Broadband Less Supply = Higher costs Urban - < $350 for T1 Rural - $700 - $1500 33

34. Policy Barriers to Broadband - Thought Leadership – Till now, NO collective voice or plan – Compared to other Critical Infrastructures, substantially fewer thought leaders tasked (paid) to engage in the discussion, as compared to other infrastructure categories. - Broadband is not treated as Critical Infrastructure in law, or policy. -ROW Policy needs to Change: - With Broadband Citizens often pay for the same Right-of-Way continuously (unlike other Critical Infrastructure) Citizens should pay for Broadband ROW just ONCE. - When constructing Roads – We should “Build two Highways for the price of one” - Often, Both Government Policy and Provider Marketing Strategies favor separate networks for government & the private sector (citizens), who then pay twice for needed infrastructure. 34

35. Other Barriers to Broadband - Providers’ rightful concern for ROI, including ROW costs, creates a dis- incentive for rural Broadband deployment. > Lack of Middle Mile (back haul) Infrastructure and lack of local off-ramps in Rural areas are common (Deployment of off-ramp infrastructure is not justified or cost effective per the low populations or take rates.) > Time- to - Market delays (permitting, environmental studies, etc.) are a major barrier and create additional cost layers for providers in the deployment of broadband infrastructure. - No mechanism or policy is yet in play in most States for substantial Urban subsidy of Rural Broadband infrastructure. Such policy is acceptable for other critical infrastructures, but is not yet available for Broadband (robust State based USF’s for Broadband will likely follow the designation of Broadband as Critical Infrastructure). 35

36. ARRA GRANTS AWARDED for Broadband GranteeTotal AwardType Arizona Government Information Technology Agency $6,358,179 Broadband Data & Development Arizona Office of Economic Recovery $1,646,936Public Computer Centers Arizona State Library, Archives and Public Records $1,278,528Public Computer Centers Communication Service for the Deaf, Inc. $14,988,657Sustainable Adoption GovNET, LLC$39,274,877State-wide InfrastructureInfrastructure Mission Economic Development Agency $3,724,128Public Computer Centers Navajo Tribal Utility Authority $32,190,067Tribal-wide InfrastructureInfrastructure University Corporation for Advanced Internet Development $62,540,162 Nation-wide InfrastructureInfrastructure (AZ about 2% of Total) 36

37. Some Advice from a “Voice of Experience ” www.bbpmag.com/2010mags/nov.../BBP_NovDec10_BoostBroadband.pdf

38. Organizational Capacity Building - Work Flow and Tasks 38

39. AZ BROADBAND MAP 39

40. OUTCOMES FROM LOCAL PLANNING - Integration of Broadband into the Local Area Economic Development discussions - Targeted Planning for Broadband at a Local Level - Leveraging of Grant Dollars for Planning into Grant Dollars for Infrastructure build-out - Moving from Plans to Build-out to Economic Benefits of Broadband Deployment in Rural areas of the State - Rural Regions of the State with a new paradigm for economic growth, better quality of life, and increased access to the Information Age 40

41. Outcomes of Capacity Building More Broadband Availability, in deficit areas of the State - Policy Improvements with Broadband considered as Critical Infrastructure in law. - Creation and Maintenance of State Plan - Alignment with National Plan - Nexus for Discussion and level playing field for all Stakeholders, including the interests of Providers, Government, Consumers, Business 41

42. Broadband and Economic Development: A Hard Look at Job Creation From All Angles April 13, 2011 Jim Baller The Baller Herbst Law Group, P.C. 2014 P Street, N.W. Washington, D.C. 20036 (202) 833-5300 www.Baller.com BROADBAND PROPERTIES SUMMIT Pre-Conference Webinar 42

43. Improve understanding of relationship between broadband, economic development, and job creation Identify barriers, success factors Learn what works, what doesn’t, why Review what’s happening today Determine what more needs to be done Establish new multi-disciplinary relationships and mechanisms for ongoing learning, communication, and collaboration Goals of the Economic Development Day 43

44. America’s Global Competitiveness – Where We Are and Where We’re Heading Jim Baller, Moderator Bill Bates, Chief of Staff, US Council on Competitiveness Megan Stull, Telecom Policy Counsel, Google Blair Levin, Fellow, Aspen Institute, Former Head of the FCC’s Omnibus Broadband Initiative Opening Session 44

45. What is Economic Development? Metrics / Success Factors / Barriers / Opportunities Lev Gonick, CIO, Case Western, Moderator and Speaker Michael Curri, President, Stategic Networks Group Adam Bruns, Managing Editor, Site Selection Nicol Turner-Lee, VP and Director, Joint Center Dr. Kenneth Peres, Economist, Communications Workers of America Second Session 45

46. What the Public and Private Sectors are Doing and Planning Today Joanne Hovis, Pres. Elect, NATOA, Moderator and Speaker Jane Patterson, Exec. Director, The e-NC Authority Katie Espeseth, Dir., Fiber Project, Chattanooga EPB Graham Richards, Former Mayor, Fort Wayne, IN Third Session 46

47. Case Studies David Isenberg, Founder, Freedom to Connect, Moderator and Speaker Robert Bell, President, Intelligent Cities Forum Scot Rourke, CEO, OneCommunity Geoff Daily, Executive Director, Fiber Corps Charles Benton, Benton Foundation, Connected Illinois Partnership Fourth Session 47

48. What More Should We Do? Part I Tom Reiman, President, The Broadband Group Hunter Newby, CEO, Allied Fiber Mike Hill, Chairman, FTTH Council Bill St. Arnaud, Green Broadband Consultant Desmarie Waterhouse, Telecommunications Representative, American Public Power Association Fifth Session 48

49. What More Should We Do? Part II John Windhausen, Coordinator, SHLB Coalition Andrew Lowenstein, Chief Strategy Officer, Connected Living Kathy Franco, Executive Director, Public Policy, AT&T Matthew Rantanan, Director of Technology, Southern California Digital Tribal Village Sixth Session 49

50. Review and Next Steps Panel of 3 reviewers of day’s highlights Audience Reactions and Input Where from here? –Goals for future –Needs –Mechanisms –Timetable –Who else should be involved? Closing Session 50

51. Q/A SESSION 51 For more information, you can visit the following sites: Summit Home Page http://www.bbpmag.com/2011s/http://www.bbpmag.com/2011s/ Why Attend the Summit? http://www.bbpmag.com/2011s/11WhyAttend.php http://www.bbpmag.com/2011s/11WhyAttend.php Summit Agenda at a Glance http://www.bbpmag.com/2011s/11agendaglance.php http://www.bbpmag.com/2011s/11agendaglance.php