Broadband summit: Connect America . FCC-NARUC JT Conference on advanced Services November 2008

1. Strategic Overview Broadband summit: Connect America .FCC-NARUC JT Conference on advanced ServicesNovember 2008

2. Condition of approval of 2005 mergers of SBC-AT&T and Verizon-MCI. • Mission: Improve access to Broadband in underserved communities. • Established as a non-profit public benefit corporation. • $60 M over 5 years ($45 M from AT&T and $15 M from Verizon) with > $5 M for telemedicine. CPUC Ordered Establishment of California Emerging Technology Fund

3. Broadband in californiaFoundation for 21st Century Economy • California ranks 10th globally (US 15th OECD). • US economic productivity gains $28 B in 2005 (estimated $860 B over next decade). • 96% of residences have access, but only half at speeds greater than 10 Mbps. • 4% (1.4 M rural residents) lack access. • Adoption of broadband is about 56%. • Broadband is “green” technology.

4. Adoption Ranges Widely Across Regions Source: PPIC analysis of Forrester data

5. CETF Mission CONNECT  COMMUNICATE  COMPETE Provide leadership statewide to minimize the Digital Divide by accelerating the deployment and adoption of broadband and other advanced communication services to unserved and underserved communities. Ensure that California is a global leader in the availability and use of broadband technology.

6. CETF Strategic Action PlanOverall Perspective • Public-Purpose “Venture Capital” Fund. • Be pro-active in identifying investments. • Invest in both ideas and people. • Help build capacity. • Market-Based Strategies. • Underserved Seen as Emerging Markets. • Seed Funding Leveraged Four-Fold.

7. California Emerging Technology FundPartners in Investments • at&t and at&t Foundation • Bank of America • Department of Managed Health Care • Comcast • FCC • Humboldt Area Foundation • One Economy Corporation • Public Policy Institute of California • The McConnell Foundation • University of California • Verizon and Verizon Foundation • ZeroDivide (partial list)

8. CETF Strategic Action PlanMetrics for Progress • Supply-Side Methodology and Metrics • Report on Availability: Technology, Speed, Affordability (CPUC, CETF and BTH) • Comparison to Other States and Countries (Index) • Economic Impact • Universal Design Adoption • Demand-Side Methodology and Metrics • Annual Survey of Use by Socio-Economic Groups • Assessment of Accessibility • Self-Assessment Tools • Focused Consumer Surveys

9. The 5 a’s of Digital inclusion A ccess pplications =Adoption ffordability ccessibility ssistance

10. CETF Strategic Action PlanBasic Approach • Identify best practices and models. • Consult experts and stakeholders. • Seek out prospective investments. • Facilitate collaboration among CBOs. • Develop regional strategies. • Encourage public-private partnerships. • Hold investments accountable for performance and outcomes. • Measure progress quantitatively.

11. CETF Strategic Action PlanWorking Approach for Rural Areas • Aggregate demand. • Identify and map public-purpose networks. • Explore joint ventures with existing and new providers. • Deploy broadband in conjunction with all major infrastructure projects. • Pursue telemedicine as a leading strategy: California Telehealth Network.

12. Aggregation of demand projects

13. CETF Strategic Action PlanWorking Approach for Urban Neighborhoods • Identify successful programs and invest in expansion and replication. • Invest in technology as part of integrated programs to transform communities. • Engage youth as gateway to families. • Promote smart housing . • Expand California Telehealth Network to urban communities. • Promote regional economic strategies.

14. CETF Strategic Action PlanWorking Approach for people with disabilities • Integrate universal design and accessibility into all investments and grants. • Provide technical assistance to grantees. • Work with industry to improve accessibility of hardware, software, and websites. • Identify successful models and expand or replicate. • Explore feasibility of revolving loan program for accessible technology.

15. DISTRIBUTION OF GRANTS 2008

16. DISTRIBUTION OF GRANTS 2008

17. CETF Strategic Action Planpromote digital literacy • Convene ICT Digital Literacy Leadership Roundtable to reach consensus on California Initiative and Action Plan. • Promote adoption of California Policy that it is a goal for students and workforce to gain ICT Digital Literacy skills. • Assist State in recognizing and accepting assessment frameworks and curricula. • Mobilize to provide computers and broadband to all middle school students.

18. Regional RoundtablesProspective Regional Economic Strategies • Public Awareness and Civic Leadership • Economic Prosperity Strategic Plans • Land Use and Infrastructure Policies • eGovernment • Libraries and Public Access • Education and Workforce Development • Smart Affordable Housing • Telehealth and Telemedicine • Employers and Telecommuting

19. California Emerging Technology Fund 5 Third Street, Suite 520 San Francisco, CA 94103 415.744.2383 1000 N. Alameda Street, Suite 240 Los Angeles, CA 90012 213.346.3222 www.cetfund.org