Using Broadband to Drive Economic Development and Create Jobs Fiber for the New Economy September 16, 2015

Smithville Nearly a Century of Innovation Family owned business since 1922 Today largest Indiana privately owned telecom Limited ownership allows for agility in innovation, embracing of new technology Originally rural telephone company Early adopter of DSL First introduction of fiber in 1990s, $100+ million residential fiber expansion in 2008, 2,800 miles of fiber today in Indiana Top 100 Broadband Company (seven times) First Indiana “GigaCity” company 2015

Jasper, Indiana Case Study in Economic Development Public-private partnership between Smithville and city government Gigabit connectivity throughout entire city by 2018 Smithville already had several enterprise- level fiber customers in city

City Profile Jasper - major manufacturing center Home of Kimball International, Kimball Electronics, and Masterbrand Cabinets Ranked in 100 Best Small Towns in America, top “Best Places to Live” NOT located on interstate

Benefits of High-Speed Fiber Increase attractiveness of city to site selectors Critical for telecommuting (rural area serves large manufacturing operations; fiber allows “work at home” capacity)

Expected Benefits of Smithville Engagement Increased capacity for economic diversification Job creation Increased competitive stance Improved productivity Helps to compensate for lack of Interstate access Higher quality of life

Next Steps Jasper/Smithville – created model for successful public/private partnership and collaboration Cost-effective “fiberhood” strategy City provides local asset base (pole strands) Other areas of Indiana, particularly REMCs, expressing interest in new partnerships Risk management

Contact: Cullen McCarty Executive Vice President