1. 1 NG KIH / I Way UK Analytics & Technologies Service Showcase 2015 August 6, 2015 Presented by Finance and Administration Cabinet Commonwealth of Kentucky

2. 2 The Washington Post – June 24, 2015 Source: http://www.washingtonpost.com/blogs/govbeat/wp/2015/06/24/the-state-of-broadband-in-the-states-in-2-maps/ Broadband capacity grew slightly across the country in the first quarter of this year.

3. 3 The Washington Post – June 24, 2015 Source: http://www.washingtonpost.com/blogs/govbeat/wp/2015/06/24/the-state-of-broadband-in-the-states-in-2-maps/

4. 4 Average Peak Broadband Speed for 104 countries and states 98.5 Mbps 36.7 Mbps Broadband Speed Comparison to Other Countries Singapore tops the list Delaware is top U. S. state at 85.6 Mbps Chile is at the bottom, Kentucky is at 37.1 Mbps & dead last for states Source: Akamai Technologies State of the Internet report, Q1 2015

5. Limited high capacity fiber Kentucky is 47 th in the nation for broadband availability 23% of Rural population has no access vs. 1.5% in Urban areas Only 30% of Eastern Kentucky households adopt broadband vs. 60% urban adopters at the Federal Communication Commission’s previous standard speed of 3 Mbps Gap widens with the FCC’s new standard speed at 25 Mbps Accessibility + Adequate Speeds + Affordability + Awareness = ADOPTION 5 Current State of Broadband

6. Middle Mile Network Middle mile, a physical system of fiber optic cable that will allow broadband service to be brought closer to communities. Think of KentuckyWired as an interstate highway system, connecting the worldwide Internet to “exit ramps” closer to a community. 6

7. What & Why? Why do we need KentuckyWired? Ranked 47 th in nation for speed & capacity Disadvantage for attracting/growing new opportunities Broadband now an essential service Too expensive for private companies to build out across entire state What is KentuckyWired? Physical fiber optic network Commonwealth responsible for investing/building middle-mile Open access network different from other state networks 7

8. Conceptual Network Design 8

9. KentuckyWired Is… A state-owned physical fiber optic network; conduit for transmitting data. Open access; providers can connect equipment to KYW & build fiber to homes and businesses in a community. Wholesale provider of network capacity to providers; frees providers to invest in extending local fiber networks & growing their customer base. Presence in all 120 counties. Combining public and private funding resources. IS... An Internet service provider to individuals. IS NOT… Building fiber to individual homes or private businesses. 9

10. Vendor Commitment 100+ Crews statewide 60% Local labor 8-12 % Minority hire ~$175M Kentucky contracts Jobs Construction phase through 2018 ~690 FTEs (at Peak) Engineering Construction Management Field Crews Jobs through life of the contract ~20 FTEs Executive Engineering Management Administration Skilled Technicians 10 Private Partners

11. State government has taken the lead to invest in broadband infrastructure. By owning the KentuckyWired network, state government serves itself. Excess capacity available to regional and local providers allowing them to expand their customer base. Kentucky will have a world leading network for speed and capacity. 11 Key Points

12. Provide step by step guidebook to help local leaders : Bring last mile service to their communities Obtain federal funding Appalachian Regional Commission Grants Community Connect thru Rural Utilities Service Grants Rural Utilities Service (USDA Rural Development) Loans Establish contracts to assist with planning and implementation of new community programs Create or expand Internet Access Centers (pilot project) Libraries Community Technology Centers Engage local private sector partners and local government 12 Concurrent Efforts Underway

13. 13 December 23. 2014 Press Conference Promote Economic Development Enhance Education, Research Capabilities Improve Government Service Delivery Enhance Public Safety Improve Health Care Enhance Connectivity for Libraries, Communities Create Scalable Network for Future Growth A Shared Vision & Goals

14. 14 Website KentuckyWired.ky.gov Email KentuckyWired@ky.gov Telephone (502) 782-9549 Project Contact Information