V10 Partners Broadband Stimulus Summary

AMERICAN RECOVERY & REINVESTMENT ACT BROADBAND PROGRAMS SNAPSHOT

© V10 Partners, Inc. - February 2009 – version 1.1

2 PROGRAMS - $7.2B 1. NTIA - Broadband Technology Opportunities Program ─ $4.7 Billion – The “NTIA” Program ─ Administered by National Telecommunications and Information Administration (link) ─ Assistant Secretary of Commerce for Communications and Information (link) ─ In consultation with Federal Communications Commission (link)

2. Distance Learning, Telemedicine, and Broadband Program ─ $2.5 Billion (broadband portion) – The “RUS” Program ─ Administered by the USDA Rural Utilities Service (link) ─ Rural Development Telecommunications Program (includes broadband) (link)

NTIA SUMMARY  NEW program ─ Earlier Technology Opportunities Program (TOP) as a template? (LINK)

 Grants for National Broadband Service Development & Expansion

Very Broad/Loose

─ Provide broadband service in unserved areas ─ Provide improved access to broadband service in underserved areas ─ Provide broadband education, training, access, equipment, support to: ► ► ► ► ►

schools, libraries, medical, higher-ed, etc. organizations/agencies that facilitate low-income, unemployed, aged, vulnerable job-creating facilities within designated economic-dev zones improve access & broadband use by public safety agencies stimulate demand for broadband, economic growth, job creation

NTIA GRANTS  Grants will be used to: ─ Acquire equipment, networking capability, hardware and software, broadband infrastructure ─ Construct and deploy broadband service related infrastructure ─ Ensure access to broadband service by community anchor institutions ─ Facilitate access to broadband services by low-income, unemployed, aged, and otherwise vulnerable populations ─ Construct and deploy broadband facilities that improve public safety broadband communications services ─ Other projects and activities consistent with the purposes of program

NTIA SPECIFICS  All awards to be made before eoy-2010 ─ Projects to be completed within 2 years following award

 Grant eligibility ─ States, Indian Tribes, Non-profits, “any other entity” found to be “in the public interest ” – including broadband service or infrastructure providers

 Application, reporting & oversight process - TBD  Federal share of any project not to exceed 80% ─ exceptions process - TBD

 Requires National Broadband Plan ─ Ensure all people of the United States have broadband access

NTIA CARVEOUTS  $200m to expand public computer center capacity  $250m to fund “innovative programs” to encourage “sustainable adoption” of broadband services

 $350m developing & maintaining a broadband inventory map

 $10m audit and oversight of funds

RUS SUMMARY  Existing Program, expands program capital ─ Existing program definition - “Loans to fund cost of construction, improvement, and facilities to provide broadband service to rural communities”

 Grants, Loans & Loan Guarantees for broadband infrastructure ─ ARRA funds expected to be primarily deployed as Grants ─ 75% of area served by a project must be rural, without sufficient broadband ─ Priority to projects that will deliver a choice of more than one service provider ─ Priority to projects that service highest proportion of residents without access to broadband ─ Priority to projects which include former RUS program borrowers

 Projects/areas funded by this program may not also receive funding via NTIA Program

WHAT’S MISSING?  Important Definitions ─ “underserved” and “unserved” ─ “without sufficient broadband” ─ “in the public interest” ─ “rural”

 Application, reporting & oversight process

V10 Does your company have a strategy to participate in these programs? Do you have partnerships with the influencers of large public broadband projects? If not, perhaps we can help. V10 helps Internet and broadband technology companies develop and execute effective sales & go-to-market strategies. We have direct experience leading winning efforts in the municipal and public-private partnership broadband marketplace. If you would like to discuss how we can help position your company to participate in these new initiatives please contact us.

V10 PARTNERS, INC

Marty Hahnfeld [email protected] 847 230 4244 V10PARTNERS.COM