California public utilities commission Progress Report – October 14, 2010 Sunne Wright McPeak

California public utilities commission Progress Report– October 14, 2010Sunne Wright McPeak

CALIFORNIA EMERGING TECHNOLOGY FUND Mission CONNECT COMMUNICATE COMPETE Mobilize leadership statewide to close the Digital Divide by accelerating the deployment and adoption of broadband to unserved and underserved communities. Ensure that California is a global leader in the availability and use of broadband technology.

CALIFORNIA EMERGING TECHNOLOGY FUNDBackground • Established at direction of CPUC in 2005 in approving mergers of SBC-AT&T, Verizon-MCI. • AT&T and Verizon agreed to contribute $60M. • Organized in 2006; began operations in 2007. • Conducted research and fact finding of “what works” and adopted a Strategic Action Plan. • All $60M in seed capital has been received. • Goal is to leverage impact 4-fold (1:3 match). • Progress is being made.

California emerging technology fundStrategic Action PlanValues and Commitments • Dedicated to Closing the Digital Divide • Focused on Outcomes and High ROI • Driven by Research on Best Practices • Inclusive and Open to Input • Transparent About Process and Decisions • Disciplined About Analysis and Evaluation • Accountable to Public and Partners

CALIFORNIA EMERGING TECHNOLOGY FUNDOverall Goals and Metrics for Success by 2017 • Supply – Deployment • Access for >98% (>250,000 HH of 500,000 Unserved HH) • Robust California Telehealth Network (>2,000 Sites) • All Tribal Lands Connected and Part of CTN • Demand – Adoption • 80% Statewide Adoption by 2015; 90% by 2020 • All Regions and Groups within 10 Percentage Points • Increased Overall Accessibility and Universal Design • California a Global Leader • Sufficient Speeds for Innovative Emerging Consumer Uses • Increased Economic Productivity and Job Generation • Reduced Environmental Impacts – Green Benefits

Kentucky 44,000 Square Miles Unserved CALIFORNIA IS KEY TO CLOSING THE DIGITAL DIVIDE IN AMERICA The Digital Divide in California is the equivalent of having an Illinois, New Mexico, Maine, Kentucky and Alaska all inside the state. Maine 1.4 M Rural Residents without Access Illinois 12.9 M Urban Residents Not Connected New Mexico 1.9 M People with Disabilities Alaska .68 M Native Americans

5 Categories of strategic action • Civic Leadership Engagement • Rural Regional Consortia and Urban Regional Collaboratives • Community Leader Engagement as Broadband Champions • Venture Philanthropy Grantmaking • Partner with Trusted Messengers, Honest Brokers • Build Capacity, Promote Collaboration • Public Policy Initiatives • Digital Literacy -- School2Home • Telehealth – Telemedicine – Health IT • Smart Housing -- Smart Infrastructure and Communities • Public Awareness and Education Program • Strategic Partnerships

Civic Leadership EngagementRegional Consortia Grant Partners Urban Regional Roundtable and Consortia

Civic leadership engagement • 7 Rural Regional Consortia • Demand Aggregation Projects • Support for CASF and ARRA Deployment Projects • Encouragement of Adoption • 6 Urban Regional Roundtables and Collaboratives • Integration of Broadband with Priority Strategies • Promotion of Adoption • Platforms for Public Policy Initiatives • Mobilization for Key Policy Issues and Opportunities • Public Policy Initiatives • Policy Issues

Venture philanthropy grantmaking • 3 Priority Consumer Communities • Rural and Remote Areas • Urban Disadvantaged Neighborhoods • People with Disabilities • $23M Granted to > 60 Organizations • $74M in Match Funds – Achieving 1:3 Leverage Goal • Specific Deliverables and Measurable Outcomes • Quarterly Reports , Annual Reviews, Collaboration • Received 2 ARRA NTIA Grants for 19 Partner CBOs • $14.3M NTIA, $2.6M CETF, $3.4 Partner Match • Builds on CETF Investments • $10M Uncommitted Seed Capital Remaining

public POLICY Initiatives • Digital Literacy • State Policy – Governor’s Executive Order on Digital Literacy • School2Home – Close the Achievement Gap and Digital Divide • Telehealth and Telemedicine • California Teleheallth Network (CTN) – New Non-Profit Entity • Teledentistry and Veterans Administration • Smart Housing • Policy to Connect Publicly-Supported Housing • 21st Century Communities – Promise Neighborhoods • Smart Infrastructure and Communities • Wireless Comparative Analysis and Education Project • Model Policies: Resource Guide for Government Officials • Green Benefits of Broadband

Public awareness and education get connected! • Research with Focus Groups of Non-Users • Website for Non-Users in 4 Languages • Public Awareness Announcements • Rural Regional Consortia and Urban Regional Collaboratives • Community Leader Engagement as Broadband Champions • Community Connect Fairs • 10 Community Connect Fairs To Date • Tool Kit Available for Communities • Get Connected! Resolutions • Foundation for NTIA Grants

Public awareness and education Get Connected! PUBLIC EDUCATION: Web Portal 4 Languages Over 14,000 Visits

Public awareness and education Get Connected!Award-Winning Logo • Strategic Elements: • Graphic representations of people • Map/Shape of California • Design elements and symbols that convey • technology • Attention-grabbing colors and schemes Adapted for various locations & languages Award-Winning Design

Public awareness and education Get Connected! Champions • Resolutions • In-Kind Contributions • Discounted Purchases • Giveaway Items • Supplies • Vendors

Public awareness and education Get Connected! Community Connect Fair • Raise awareness and provide hands-on experience • Grantee Collaboration • Vendors • Classroom Instruction • Giveaways • Seven Community Connect Fairs • Boyle Heights • MacArthur Park • Van Nuys • South Los Angeles • Southeast Cities • Chinatown – Los Angeles • Long Beach

Pending • Alpine • Butte • Calaveras • Glenn • Imperial • Inyo • Kings • Lassen • Madera • Monterey • Napa • Orange • Placer • Plumas • Riverside • Sacramento • San Bernardino • San Diego • San Francisco • San Joaquin • San Mateo • Santa Barbara • Santa Cruz • Sierra • Siskiyou • Sutter • Yuba • Ventura Progress on Get Connected! Resolutions • Approved_GetConnected! • Alameda • Amador • Colusa • Contra Costa • Del Norte • El Dorado • Fresno • Humboldt • Kern • Lake Del Norte Siskiyou Modoc • Los Angeles • Marin • Mariposa • Merced • Mendocino • Modoc • Mono • Nevada • San Benito • San Luis Obispo • Santa Clara • Shasta • Solano • Sonoma • Stanislaus • Tehama • Tuolumne • Trinity • Tulare • Yolo Humboldt Trinity Lassen Tehama Shasta Glenn Plumas Mendocino Butte Yuba Lake Colusa Sierra Sutter Nevada Yolo Placer Napa El Dorado Sonoma Amador Solano Alpine Sacramento Calaveras Marin San Joaquin Contra Costa Tuolumne San Francisco Alameda Mono San Mateo Mariposa Stanislaus Madera Santa Clara Santa Cruz Fresno Tulare Merced San Benito Inyo Monterey Kings San Luis Obispo Kern Santa Barbara San Bernardino Ventura Los Angeles Riverside Imperial Orange San Diego

5 CATEGORIES of strategic action • Civic Leadership Engagement • Rural Regional Consortia and Urban Regional Collaboratives • Community Leader Engagement as Broadband Champions • Venture Philanthropy Grantmaking • Partner with Trusted Messengers, Honest Brokers • Build Capacity, Promote Collaboration • Public Policy Initiatives • Digital Literacy -- School2Home • Telehealth – Telemedicine – Health IT • Smart Housing -- Smart Infrastructure and Communities • Public Awareness and Education Program • Strategic Partnerships

Strategic partnerships • Leverage $10M Remaining Seed Capital • Attract Major Partners in $1M Increments • Secure At Least Additional $30M • Focus on Priority Targets of Opportunity • Get Connected! Public Awareness • School2Home: 539 Low-Performing Middle Schools • Comprehensive Neighborhood Transformation • Enlightened Strategic Investments Option • Affordable Broadband for Low-Income Participants • National Broadband Plan

California emerging technology fundwhat are the results? • Deployment • Adoption • Major Accomplishments

California Broadband Deployment % Access 100% Unserved Households Connected • 2007 California Broadband Task Force Report • 96% Households with Access • 500,000 Households - 1.4 M People Unserved • CETF Goal: Achieve > 98% Access 98%

APPROVED CPUC CASFProposal Summary

Impact of ARRA in California • California Faired Better in Round 2 (6%/10%) than Round 1 (6%/2%: <1%D, 21%A), but Overall Results Fell Short of Need and Fair Share • $516.1 M : $417.3M Deployment; $98.7M Adoption • CPUC Received $7.9M for Mapping • Multi-State Awards Have Unknown Benefit for CA • CASF was Pivotal for ARRA and Key for Future • CASF and ARRA Processes Generated Marketplace Proposals for Future Consideration • Deployment Opportunities to Leverage CASF : RUS, CTN, Tribal Lands, Homeland Security

Global Broadband Speeds Average Download Speed GLOBAL RANKING (megabits per second) The Average Upload Speed in California is 1.3 mbps. Source: CWA Speedmatters.org - 2009

California’s Digital DividePPIC-CETF-ZeroDivideStatewide Survey

Progress on Broadband Adoption

CETF Major results to date • Developed Strategic Action Plan that Framed California’s Game Plan with Focus on Results • Established Outcomes and Metrics for Success • Engaged Civic Leaders and Community Partners Throughout California – Platform for Action • Achieving 4-Fold Leverage of Seed Capital • Managing Funds Efficiently with Discipline: Audits– 7% Support, 93% Program • Making Progress on Deployment and Adoption Goals to Close the Digital Divide

California Emerging Technology Fund 5 Third Street, Suite 320 San Francisco, CA 94103 415-744-2383 1000 N. Alameda Street, Suite 240 Los Angeles, CA 90012 213-443-9952 www.cetfund.org

California public utilities commission Progress Report – October 14, 2010 Sunne Wright McPeak