Appalachia’s Information Age Appalachia

1. Appalachia’s Information Age Appalachia Harry L. Roesch Senior Telecommunication Advisor RTC Conference Springfield, Illinois October 2007

2. The ARC has approved in excess of $300 million in support oftelecommunications projects since 1972

4. Appalachian States

5. Appalachian Region • 13 states • 410 counties • 200,741 sq. miles • 23 million people • 72 local development districts

6. Facts and issues about the Region • In 2002, 42% of the ARC population were classified as being “rural” compared to 20% for the nation • In FY 2007 – 78 /410 counties were classified as being “Distressed” based on ARC criteria. • DSL or cable modem access from a cable TV service provider is generally the only affordable broadband services in Appalachia.

7. 1972 –1985 History • ARC invested millions of dollars in satellite down link and microwave equipment, early generation “tapping” equipment, and nascent network development [UK was the up-link site for all educational programming] • ARC underwrote the development of program content, and facilitated simultaneous educational programming provided throughout the region

8. 1985 - 1990 • Throughout the 1980’s the ARC continued to support the development / transmission of expanded educational curriculum materials using microwave technologies • Numerous small educational networks began to be developed and TVA was early partner in project development and project management • Many networks initially used T1 lines to facilitate connectivity • 10’s of Millions of dollars were invested

9. 1991 Knoxville Conference This jointly funded conference co-sponsored by the TVA, telecommunication service providers, universities, and others attracted over 350 people – the conference….

10. Post the conference the ARC reserved $265,000 to fund small Multi-County Strategic Telecommunications Plans throughout the Region. 1992 – 1993 10 strategic telecommunications planning projects were funded: NY, Ohio, PA, MD, VA, SC, NC, WV – often more than one in a state

11. 1992 –1994 Once the planning programs were completed, numerous small networks were funded by the ARC - with NY funding 14 educational networks based on the planning effortsthat were underwritten

12. ARC’s First Telecommunications Regional Initiative Program1995 - 1998 • Over 130+ projects were funded over the 4 year period of time totaling over $12,000,000 • 5 new state “region-wide” strategic telecommunications plans were approved: AL, Pa, KY, TN, NC • and numerous other special demonstrations projects in education, telemedicine, business, and government were approved

13. 1999 - 2007 • More strategic telecommunications planning projects were funded - GA, KY, AL • Demand Aggregation projects were funded - NC, Ohio, KY, MD, PA, KY • Numerous multi sector user networks were funded - AL, GA, NC, KY, PA, MD, NY, NC, VA, WV • and, all types of innovative implementation and TA projects were funded: Cyber Campuses – NC, several non-profit ISPs established in GA, OH, and “Help Desks” – TN, MD, OH • E - demonstrations – PA, NY • The ARC annually approves between $4-6 Million dollars worth of telecommunications projects

14. Demand Aggregation projects and other “state” efforts the ARC is closely monitoring: • KY’s CITE / ConnectKentucky program, and Ohio’s “Access Appalachia” • NC’s - NC Rural Internet Access Authority • NC’s -“Appalachian Access” project • Mississippi’s -The Create Foundation’s - MEGAPOP project to expand High-Speed Broadband connectivity • Pennsylvania’s - 3 county wide demand aggregation projects • And Maryland’s –Allconet2 E-business network

15. ARC’s New ProgramInformation Age AppalachiaApproved 11/2001 A program to help the Appalachian region to overcome the Digital Divide and ensure that “affordable” high-speed telecommunications services become a reality in the region

16. ARC’s IAA Program focus…………. • Improve access to infrastructure through strategic planning efforts, assisting with Demand Aggregation efforts, and in some cases actually installing some critical necessary infrastructure; • Provide education, training, and workforce development programs on IT to benefit all sectors of the economy with enhanced educational and TA materials; • Assist S & M size businesses with E-commerce readiness training programs, working with trade associations, and other organizations, and with specific business sectors in developing overall improved IT utilization opportunities in the region; • Develop new Technology Sector strategies that will assist the region in capturing more IT sector business.

17. IAA Program “In-house” program was funded at $1,000,000 + over the period of FY 2002 - 2004Guiding Principles • Emphasis on the Distressed areas in the region • Builds on ARC’s partnership model • Funds only projects that are locally sustainable – 2 sector beneficiary required for all funded projects • Assists the region to find affordable solutions • Builds on local capacity in individuals / organizations • DA Workshops are still being offered

18. IAA In-house - Accomplishments • 26 Aggregation of Demand Workshops have been held, and 4 funding workshops, and 4 E-Rate workshops have been held • 5 Wireless Demonstrations projects are now underway in NY, OH, and WV • Carnegie Mellon U. TA contract approved WV / PA initially –wireless demonstrations • 6 - Conferences supported including: - 2 - Rural Telecommunications Congress Conferences • 5 E-commerce Tourism / Arts / Crafts projects funded in 2003 • Continued central office TA services

19. A special set-a-side of $2 Million was reserved for telecommunications and other initiatives projects in FY 2005-2007

20. Types of projects funded under the $2 M set-a-side: • Improved access to infrastructure [AL, VA, PA, MD, MS, TN, NY, WV, NC] • Improved education, training, workforce development [AL, NY, NC, MD, SC, TN] • Assisted businesses with E-commerce readiness programs [PA, MD, NY, AL, VA, ] • Assisted in Tech Sector development employment programs [WV,KY, TN, KY] • Expanded partnership arrangements were developed throughout the region to enhance telecommunications improvements in the region [PA, KY] • Worked with local stakeholders to improve their technical knowledge of the “Information Age” issues through Strategic Telecommunications Planning [AL, KY, VA, SC]

21. Appalachian Region • 13 states • 410 counties • 200,741 sq. miles • 23 million people • 72 local development districts

22. Cable Internet Access Available, 2000 (In Parts or Whole of County) Cable Internet Access Available No Cable Access

23. Cable Internet Access Available, 2003 (In Parts or Whole of County) Cable Internet Access Available No Cable Access

24. DSL Internet Access Available, 2000 (In Parts or Whole of County) 4 or More DSL-Ready Telephone Switches 1 – 3 DSL-Ready Telephone Switches No DSL Access

25. DSL Internet Access Available, 2003 (In Parts or Whole of County) 4 or More DSL-Ready Telephone Switches 1 – 3 DSL-Ready Telephone Switches No DSL Access

26. Competition & Service of High-Speed Internet Providers, 2000 (by ZIP Code) No High-Speed Provider 1 – 3 High-Speed Providers 4 or More High-Speed Providers

27. Competition & Service of High-Speed Internet Providers, 2002 (by ZIP Code) No High-Speed Provider 1 – 3 High-Speed Providers 4 or More High-Speed Providers

28. ARC based activities that benefit the states… The ARC continues to offer Aggregation of Demand workshops throughout the region as requested. [past recipients PA, MD, MS, OH, VA, NY, AL, WV, KY, VA, GA] ARC continues to expand its outreach / working relationships with foundations, trade associations, non-profits, industry, businesses, etc. [Motorola / Microsoft] ARC has created an On-line telecommunication resource center within the ARC WEB site www.ARC.GOV to help the region find resources to fund telecommunication related projects at the local level.

29. Critical Types of Applications Needed in Appalachian Communities Telemedicine, E-Commerce, E-government, Distance Learning

30. The ARC will fund all types of projects that further the adoption of “applications” in the region, but projects must be multi - sector in nature

31. Distance Learning • ARC will fund Distance learning programs that improve the quality of education curriculums for school system, colleges and universities • ARC will fundAdvanced Placement / dual enrollment programs that are offered by colleges / universities – inspires students to go to college • ARC will fund Community Access Centers that offer / provide “in-place continuingeducational” opportunities for all residents • ARC will continue to fund expanded Workforce training and Adult Literacy programs

32. Telemedicine and Telehealth Services • It is now becoming a standard of practice for thereimbursement industry to reimburse for telemedicine services [ Medicare, Medicaid, Blue Cross, etc.] • Telemedicine programs improve the overall access and delivery of quality health care • Hospitals, clinics, laboratories, and doctor’s offices are now routinely sharing patient information [Informatics] utilizing Internet connectivity to improve the quality of patient care and case management • Disease Management and post operation follow-up services are now being routinely facilitated by “in-home telemedicine devices” using POTS lines

33. E-Commerce • Businesses are discovering that a Robust WEB sitemeans potential new market penetration and new sales • Many businesses are now being required to do business on-line / ISO-9000 certified businesses now require Electronic Commerce Interface with other ISO-9000 businesses • Businesses are using video-conferencing: to market their products, conduct routine administrative “in-house” services, and provide continuing educational services to staff • Business assistance services offered by IDA’s, SBDC’s, Chambers of Commerce, etc. are now being frequently provided through routine on-line training and “In-house” training programs for businesses

34. E-Government • Governments are now offering on-line services that provide routine information on taxation, public hearings, minutes and agendas of meetings, plans under review, etc. • Governments are now offering all types of ways to do E – Government business on-line: register cars, get license plates, pay taxes, get business licenses, locate services within the government, conducting surveys on-line, and providing ways to contact elected officials on issues • Criminal justice services are now routinely being done through video conferencing services including arraignments, and medical assessments, routine hearings, pre-trial motions, expert witness testimony services • Governments are now offering all types of economic and social development services through WEB sites and on-lineservices

35. Where to get help from Federal Programs that the ARC can partner with: . Rural Utilities Service Program – D O Agriculture www.usda.gov/rus/telecom.dlt.dlthtm • Neighborhood Network Program & CDBG / Small Cities Program - DHUD • Community Technology Centers, - DOED • Universal Service Fund Program / E-Rate - FCC www.universalservice.org • Office for the Advancement of Telehealth OAT –http://telehealth.hrsa.gov

36. How to apply for ARC funds: • The ARC WEB site at www.ARC.GOV should be first opened • Look up state’s sub-directory AL – WV, and locate the name of the State ARC Program Manager. • Contact your State’s Program Manager and discuss the nature of any project before you put anything on paper!!!!! The states invite the proposals / applications not the ARC!

37. Resources beyond Federal and State funding are needed to close the telecommunications gap….. • Corporate and foundation funding will continue to be sought by the ARC over the coming years to augment ARC funding that will be pledged to the implementation of the IAA program.

38. This is clearly a Human Resource Development / Economic Developmentissue that applies to all sectors of the Appalachian economy - High-speed Broadband telecommunications services will underpin all aspects of the Information Age society in the future……..

39. Thank You Harry L. Roesch Senior Telecommunications Advisor Appalachian Regional Commission 1666 Connecticut Ave., N.W. Washington, D.C. 202-884-7774 phone 202-884-7682 fax