1. Broadband for Economic Development Morristown Utility Systems Morristown, TN Jody Wigington, CEO

2.  Equal Access Network for All Users  Local Economy Jump Started  Local Economy Jump Started.  Educated Workforce Critical  Economic Development – Existing Job Base  Economic Development – New Recruitment  How was it Possible?  Trends are Obvious  State of Tennessee fighting against itself  Will essential infrastructure have the chains lifted?

3. Morristown in East Tenn, 14K passings, 30K population Morristown in East Tenn, 14K passings, 30K population Regional industrial base for 5 counties – a driver Regional industrial base for 5 counties – a driver FTTH 100% passive optical network – reliable & fast FTTH 100% passive optical network – reliable & fast Not selective, passes every resident and business Not selective, passes every resident and business Gigabit symmetrical speeds accessible all points Gigabit symmetrical speeds accessible all points Defined difference from incumbent systems Defined difference from incumbent systems Major player is local customer service Major player is local customer service

4. Hurting from years of rate increases & lack of serviceHurting from years of rate increases & lack of service Call for Action by local leaders - looked to the utilityCall for Action by local leaders - looked to the utility 8 Yrs later – financially stable & rejuvenated community8 Yrs later – financially stable & rejuvenated community Redirecting $9 million per year to provide networkRedirecting $9 million per year to provide network Leaving $3 million rate savings in local pocketsLeaving $3 million rate savings in local pockets 60% increase in electric in lieu of tax payments60% increase in electric in lieu of tax payments Incumbents improved products & stabilized ratesIncumbents improved products & stabilized rates Win-Win for local citizens & businessesWin-Win for local citizens & businesses

5. Industry demands more & better educated workers to be sustainable in our communityIndustry demands more & better educated workers to be sustainable in our community 60 mile radius has population but lacks broadband60 mile radius has population but lacks broadband Local education system on 3 gig, asking 10 gigLocal education system on 3 gig, asking 10 gig Remote sharing of skilled teachers lowering costsRemote sharing of skilled teachers lowering costs Tech centers & local colleges choose fiber benefitsTech centers & local colleges choose fiber benefits Morristown proper has it but nearby cities do notMorristown proper has it but nearby cities do not State broadband restrictions are punitive barriersState broadband restrictions are punitive barriers Prohibits areas communities a local choice to provide for their own economic survivalProhibits areas communities a local choice to provide for their own economic survival

6. Initial build-out focused on residents, then shiftedInitial build-out focused on residents, then shifted Industry & business connecting sites on networkIndustry & business connecting sites on network Lower costs, higher speeds, better reliabilityLower costs, higher speeds, better reliability More competitive: “Time is Money”More competitive: “Time is Money” Fortune 500 companies moved to fiber & local providerFortune 500 companies moved to fiber & local provider

7. RFP’s have evolved to ask for Gigabit speedsRFP’s have evolved to ask for Gigabit speeds Network encouraged multiple local expansionsNetwork encouraged multiple local expansions Small businesses choose fiberSmall businesses choose fiber Utility created jobs internallyUtility created jobs internally Local channel with advertising & community focusLocal channel with advertising & community focus Call Center w/ 500 jobs, impressed by broadband accessCall Center w/ 500 jobs, impressed by broadband access Intangible: Sense of local prideIntangible: Sense of local pride

8. Local electric utility owns & uses network for Smart GridLocal electric utility owns & uses network for Smart Grid Transformed the utility to state-of-artTransformed the utility to state-of-art Shared w/ community offering 3-play retail servicesShared w/ community offering 3-play retail services Simple redistribution of corporate revenue wealthSimple redistribution of corporate revenue wealth Money now staying local and paying for networkMoney now staying local and paying for network Recognition to the City helps economic developmentRecognition to the City helps economic development  Connected TennesseeCommunity Service Award  Community Broadband AwardMunicipal Smart Grid Award  Sustainable CommunityNext Century City 1 of 7 Cities in Tennessee securing it’s own future1 of 7 Cities in Tennessee securing it’s own future

9. Cord cutting: Video & phone decliningCord cutting: Video & phone declining Future with streaming video creates riskFuture with streaming video creates risk Obvious need? High Speed BroadbandObvious need? High Speed Broadband Business & residential market are demanding speedBusiness & residential market are demanding speed Fear: Sustainability with small customer baseFear: Sustainability with small customer base Answer: Remove legislative restriction & share networksAnswer: Remove legislative restriction & share networks Network under utilized, capable of multiples of customersNetwork under utilized, capable of multiples of customers Old saying: “He who fibers first wins!”Old saying: “He who fibers first wins!” We fibered first and winning for nowWe fibered first and winning for now