CONNECTED COMMUNITIES Leveraging the Value and Assets of a FTTP Network Applications and Extreme Local Content THE BROADBAND GROUP Thomas Reiman-President Presented | Spring 2009 Dallas, Texas

CONNECTED COMMUNITIES

Leveraging the Value and Assets of a FTTP Network

THE BROADBAND COMPANIES BROADBAND VENTURES, LLC URBAN LAND INSTITUTE U.S. CONFERENCE OF MAYORS BROAVADA COMMUNICATIONS, LLC BROADBAND VENTURES, LLC BROADBAND AFFILIATIONS & ASSOCIATIONS US BROADBAND COALITION THE BROADBAND GROUP

KEY TRENDS DRIVING TELECOM BUSINESS PURE TECHNOLOGY is being commoditized “ The commoditization of technology is inevitable.” Consumers looking for a TRUSTED PARTNER “ To help guide them through the major transitions they are/will be facing.” There is demand for USER CENTRIC SERVICES “ Consumers want to be at the center of their communications universe; whatever they want, wherever they want, whenever they want.”

CREATING A TECHNOLOGY MASTER PLAN™ Developments and Municipalities play key, if not dominant , role in defining the value of a Connected Community enabled by FTTP Demographic & Social Trends Increased use and dependence on technology Aging boomer population values “green” and “connected” Administration’s focus on “broadband” economic development, improved healthcare, and education Must be a part of Urban Planning Partnerships Development/Municipal Leadership Trends Increased focus on green initiatives, sustainability Creating an active link between productivity and jobs Focus on defining personality, place and sense of community Essential Broadband planning is more than a FTTP Investment

Demographic & Social Trends

Increased use and dependence on technology

Aging boomer population values “green” and “connected”

Administration’s focus on “broadband” economic development, improved healthcare, and education Must be a part of Urban Planning Partnerships

Development/Municipal Leadership Trends

Increased focus on green initiatives, sustainability

Creating an active link between productivity and jobs

Focus on defining personality, place and sense of community

BENEFITS OF A FIBER COMMUNITY & POINTS OF DIFFERENTIATION Telemedicine IP Security Remote Meter Reading | Real-Time Power Usage Distance Learning | Educational Tool TeleWork Community Differentiation Extreme Local Content Community Intranet Community Announcements School Events | Parental Involvement Community Activities Government Announcements & Activities Local Advertising Advanced Applications Create “Community” through Local Content

FOREST CITY STAPLETON BRAMBLETON UNION PARK COYOTE SPRINGS Innovative Community Planning, Thinking, and Development AMERICA’S LEADING CONNECTED COMMUNITIES

Cleveland Clinic Integrates clinical and hospital care with research and education to provide a broad array of health care Community Features, Health and Wellness Focus . “ This exciting project will redefine Las Vegas as a world-class city with culture, cutting-edge medical treatment and research, and true urban living in an environment that respects the city’s precious resources. – Las Vegas Mayor Oscar B. Goodman Las Vegas Urban Redevelopment 61 acres of mixed use development, public and private facilities All facilities anchored with fiber and ubiquitous connectivity Full IP services Lou Ruvo Brain Institute Dedicated to the conquest of Alzheimer’s, Huntington’s, Parkinson’s, ALS, and all forms of brain disease. Institute is a worldwide cooperative research network seeking new treatments and prevention methods. UNION PARK THE HEART OF LAS VEGAS

Las Vegas Urban Redevelopment

61 acres of mixed use development, public and private facilities

All facilities anchored with fiber and ubiquitous connectivity

Full IP services

“ Technology isn’t the reason I moved here, but it’s the reason I stayed.” “ The whole reason we moved in was because it was a connected community.” “ I don’t think there’s any place quite like Brambleton in Northern Virginia, and I’m very proud.” “ Brambleton’s intranet is great; it’s wonderful for building connections.” Loudon, VA 6,240 homes, Town Center, Educational Center Verizon’s 1 st FiOS Community Universal Services to all Residents Community Intranet Broadband Properties Award Winner 2006 FiOS Residential and Town Center Agreement with Medconcierge; remote medical services Agreement with Carina Technologies; energy information services Verizon Retail Center Plan for Partnership with Verizon Communications to create a Community Technology Center Introducing Brambleton 2.0

Loudon, VA

6,240 homes, Town Center, Educational Center

Verizon’s 1 st FiOS Community

Universal Services to all Residents

Community Intranet

Broadband Properties Award Winner 2006

FiOS Residential and Town Center

Agreement with Medconcierge; remote medical services

Agreement with Carina Technologies; energy information services

Verizon Retail Center

Plan for Partnership with Verizon Communications to create a Community Technology Center

COYOTE SPRINGS A Unique Carrier-Content Partnership Outside of Las Vegas, NV Home to the Western United States PGA Village Entitled for 140,000 homes – 50+ million sq. ft. commercial A “New Town” development America’s Largest Master Planned Community Fiber to the Premise (FTTP) Rural Location Exchange Carrier Network Investment Developer Invested Video and Data Content Retail Service Provider Distance Shrinking Technology Energy Information Services and IP Security

America’s Largest Master Planned Community

Fiber to the Premise (FTTP)

Rural Location Exchange Carrier Network Investment

Developer Invested Video and Data Content Retail Service Provider

Distance Shrinking Technology

Energy Information Services and IP Security

FOREST CITY STAPLETON Denver, CO 8,000 residential units, 4,700 acres, 13 million sq. feet of commercial Focus on active lifestyle Affiliation with University of Colorado Focus on Health and Wellness Dedicated to Sustainability

8,000 residential units, 4,700 acres, 13 million sq. feet of commercial

Focus on active lifestyle

Affiliation with University of Colorado

Focus on Health and Wellness

Dedicated to Sustainability

“ One of the reasons we selected this region is the high quality of life the area offers, including high-quality education, health care, telecommunications infrastructure, & other amenities.” – Jim O’Neil, President Northrop Grumman Corp. on corporate relocation of the company to Bristol, VA FOCUS FOR 2009-2010

THE BROADBAND GROUP AND ITS COMMITMENT TO MUNICIPAL BROADBAND

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA) Allocates approximately $7 billion for broadband – $2.5 billion for grants, loans, and loan guarantees for broadband infrastructure through the Department of Agriculture's Rural Utilities Service (RUS ) – $4.35 billion for grants through the National Telecommunications and Information Administration ( NTIA) pursuant to a new Broadband Technology Opportunities Program (BTOP) Critical terms in ARRA are undefined: – “ broadband” – “ unserved” and “underserved” areas – “ rural” – “ public interest” How RUS and NTIA choose to define these terms will drastically impact applicant eligibility. ECONOMIC BROADBAND STIMULUS

ECONOMIC BROADBAND STIMULUS Stated purpose of BTOP is to provide broadband access in “unserved” areas and improve access in “underserved” areas. –“ Unserved” and “underserved” not defined in ARRA. Further goals are to improve broadband use by public safety, schools and libraries, medical and healthcare providers, and other community organizations as well as agencies serving vulnerable populations (low-income, unemployed, aged). BTOP also is designed to create jobs and simulate broadband demand, economic growth, and job creation generally. Opportunity for Public-Private Partnerships anchored with a Technology Master Plan™. NTIA RUS RUS currently administers three programs supporting broadband deployment: – Telephone Infrastructure Loan Program – Rural Broadband Access Loan Program – Community Connect Grant Program At least 75% of the area served by projects receiving funding must be in rural areas “without sufficient access to high speed broadband service” as determined by the Secretary. There is a high priority on service areas with the greatest “rurality” and economic need.

Stated purpose of BTOP is to provide broadband access in “unserved” areas and improve access in “underserved” areas.

–“ Unserved” and “underserved” not defined in ARRA.

Further goals are to improve broadband use by public safety, schools and libraries, medical and healthcare providers, and other community organizations as well as agencies serving vulnerable populations (low-income, unemployed, aged).

BTOP also is designed to create jobs and simulate broadband demand, economic growth, and job creation generally.

Opportunity for Public-Private Partnerships anchored with a Technology Master Plan™.

RUS currently administers three programs supporting broadband deployment:

– Telephone Infrastructure Loan Program

– Rural Broadband Access Loan Program

– Community Connect Grant Program

At least 75% of the area served by projects receiving funding must be in rural areas “without sufficient access to high speed broadband service” as determined by the Secretary.

There is a high priority on service areas with the greatest “rurality” and economic need.

CONCLUSION Developments and Municipalities play key, if not dominant , role in defining the value of a Connected Community enabled by FTTP Essential Broadband planning is more than a FTTP Investment A “trusted partnership” is not about investing in FTTP. Creating a technology “story” and “plan” has proven senior to selling fiber. Networks enable and transport the personality of any community

THE BROADBAND GROUP 900 South Pavilion Center Drive Suite 180 Las Vegas, Nevada 89144 (702) 405.7000 | office www.broadbandgroup.com [email_address]