2015 Mountain Connect Conference Vail, Colorado Jim Campbell Vice President – Regulatory & Legislative Affairs June 9, 2015

The Demands on the Internet  In 1992 global internet traffic was about 100 GB PER DAY, ten years later it had grown to 100 GB per second. Today it is over 16,000 GB/s, and by 2019 it is projected to be over 51,000 GB/s.  Bandwidth doubles every 18 months  One billion smart phone consumers expected by 2016  The number of devices connected to IP networks will be more than three times the global population by  By 2019, IP video traffic will be 80 percent of all IP traffic (both business and consumer)  It would take the average person 5 million years to watch the amount of video that will cross global networks EACH MONTH  Consumer VoD traffic will nearly double by The amount of VoD traffic in 2019 will be equivalent to 7 billion DVDs per month. 2

How Do We Do This? 3 So how do we keep up with that kind of demand, especially here in Colorado were we have many low density, rural areas?  Private investment  Support for Internet Expansion -CAF II -State Broadband Funds? -Connect Ed -First Net  Public Private Partnerships

CenturyLink’s Commitment to Colorado 4 CenturyLink continues to invest in Colorado  We have spent nearly $9 Billion on infrastructure  We have been increasing and improving broadband speeds.  We’ve introduced our IP video product – Prism – to about a half dozen municipalities with nearly another dozen franchises being negotiated.  Investment in IPTV is an investment in broadband for your communities.

Connect America Fund Phase Two (CAF II) 5  FCC has offered Colorado $26.5 million per year  Build-out speed – 10 Mbps down / 1 Mbps up  Build-out timeline/Support Period – 6 years with the option to participate in Phase III auction for another term at higher speeds or 1 additional year of funding if you opt out of Phase III  Carriers accepting CAF II support must build out broadband to 40% of funded locations by the end 2017, 60% by end of 2018, and 100% by the end of 2020  Deadline to accept offer – August 27, 2015  The state needs to leverage this program through partnerships to maximize the benefits for our citizens

Public Private Partnerships (P3) 6 We need to work together to make sure that ALL citizens in Colorado have the broadband that they want and need. CenturyLink wants to be part of the solution for Colorado We’ve been working with DOLA, OIT, Cities, Counties, and specific HOA communities to identify gaps, priorities and opportunities. Internally we have been working on creative solutions and on ways to be able to partner. Need solutions that help more than just those living in town. Role of City, County, or municipality -broadband user -demand aggregator -broadband adoption promoter -ROW Fees -Trenching -Conduit -Capital and Financing

What’s on Your Mind 7