1. www.ConnectingCommunities.info Why Broadband Matters

2. Broadband Diffusion and Adoption International National State Rural

4. Broadband Penetration/ 100 Inhabitants (ITU) US Broadband penetration/100 inhabitants 2005 – 16 th 2002 – 11 th Canada 2005 – 5 th 2002 – 3 rd US is falling behind - Potential loss of $1 trillion in economic productivity and more than 1.2 million jobs over next decade -Brookings Institution

5. 2005 e-Readiness Rankings Denmark 1 US 2 Sweden 3 Switzerland 4 United Kingdom 5 Hong Kong 6 Finland 6 Netherlands 8 Norway 9 Australia10 Economist Intelligence Unit www.eic.com

6. Pew/Internet – February 2006

8. Consumer Broadband There is a divide – It matters Unavailable in some communities Bandwidth limits applications Education/training Tele work Telemedicine eCommerce Entertainment eGov services Brain Drain Economic development

9. Commercial Broadband Business, schools, government, etc. Higher service level requirements (99.99999%) BIG Pipes Dedicated connections Higher cost in rural vs. urban/suburban areas Limited providers in rural areas

10. Commercial Broadband Matters Global economy driven by broadband Businesses less likely to locate or grow without broadband Geographic penalty Rural business, governments, schools, hospitals pay more than urban and suburban counterparts

11. Southern Rural Development Center Connecting Rural Communities Connecting Rural Communities www.ConnectingCommunities.info