State and Local Government Webinar Topic #1 Broadband and Digital Literacy

1. State and Local Government Webinar • Topic #1 Broadband and Digital Literacy • Topic # 2 Preventing Cell Phone Theft • Josh Gottheimer • Senior Counselor to the Chairman • Federal Communications Commission

2. Topic 1: Broadband and Digital Literacy

3. The Challenge • 100 million Americans do not have home broadband • 66 million Americans are digitally illiterate “Being online is no longer a convenience; it is a necessity.” Chairman Julius Genachowski, Federal Communications Commission

4. The Predicament High-speed broadband Internet is available to over 94% of households, but only 67% have adopted broadband at home The US is falling behind peer nations in household broadband adoption: Singapore and Korea have adoption rates over 90% Americans are falling behind in broadband adoption at home

5. Non-Adopters Digital Literacy 22% non-adopters say they feel uncomfortable or fearful using technology 36% non-adopters say they can’t afford broadband or computer Barriers to Adoption Cost 19% non-adopters fail to recognize the potential relevance of broadband in their lives Relevancy Most non-adopters are not receptive to traditional channels of marketing Marketing

6. The Need Jobs & Economic opportunities Education opportunities Healthcare & Other opportunities • To find a job in today’s economy you need to be online • 80% of Fortune 500 companies, require online job applications • 50% of today’s jobs require digital literacy skills; this will grow to 77% next decade • Students without broadband at home are disadvantaged • All things being equal, students with broadband at home have 6-8% higher high school graduation rates • 80% of K-12 teachers assign Internet based homework • Many schools post student grades, attendance and announcements on the Internet, and teachers often use email to communicate with parents • Internet has become a cost-effective and efficient tool in all facets of life • Home broadband can revolutionize patient care, reduce depression in seniors and enable billions in cost savings and improved health • E-government provides better government service at less cost • The internet has become a reliable source for quick access to all kinds of news and information

7. The Response A $4 billion dollar public-private-nonprofit partnership

8. Targeted Solution Digital Literacy In-person free digital literacy training at thousands of locations nationwide Nationwide discounted broadband and PCs for millions of free school lunch eligible families C2C Solutions Cost Premier online digital literacy, education, and jobs content for both adults and children Relevancy Ad Council campaign and local partners like Boys and Girls Clubs, United Way, civil rights organizations, 4H, and Goodwill Marketing

9. Targeted Offerings $9.95 per month high-speed broadband Internet; zero cost for installation and modem; available to 86% of the country Broadband $150 family laptop or desktop with LCD; including MS Office and Windows 7; available nationwide Computers Free in-person digital literacy training nationwide at locations nationwide Training Free premium education and job skills content from dozens of partners Content $4 Billion Value of In-Kind Offerings for Millions of Students and Low-Income Families

10. Digital Literacy • Digital skills are key to finding a job • Closing the digital literacy gap can reduce the job skill mismatch, which accounts for a substantial portion of national unemployment • 50% of jobs require technology skills, and this is expected to grow to 77% in the next ten years • More than 80% of Fortune 500 companies, including Wal-Mart and Target, require online job applications • Digital skills are vital for education • Over 80% of K-12 teachers assign Internet based homework • Students with broadband at home have 6-8% higher high school graduation rates

11. Digital Literacy Corps • FCC Proposal: A Digital Literacy Corps to train the 66 million Americans who lack digital skills • National corps of library and after-school training locations • Allocate $50 million from Universal Service Fund savings to support digital literacy trainers

12. Digital Literacy Corps • The Facts: • There are 16,000 public library locations • But only 38% (about 6,000) offer basic digital literacy classes • And only 25% offer classes in rural America • Our Goals: • To increase libraries with training programs to more than 60% (10,000 locations) • Create hundred more training locations at after school programs

13. Topic 2: Stolen Cell Phones

14. Stolen Cell Phones • The Problem: • 40% of all robberies in New York City involve smartphones • Cell phones are taken in 38% of all DC robberies • Many cell phone robberies involve violent crimes • Loss or theft of a smartphone often results in access to sensitive personal data

15. Stolen Cell Phones • Working toward a solution: • Chairman Genachowski, with major city police chiefs and the wireless industry, announced new initiatives to deter theft and secure customer data: • Database to prevent use of stolen smartphones • Phones will not be able to be reactivated on any major mobile network • Resale (black market) value of phones will be diminished • Encourage password protection • Educate users on lock/locate/wipe applications • Public education campaign on how to protect yourself • Progress benchmarks and ongoing dialogue

16. Stolen Cell Phones • Accountability: • Lost/stolen phone database roll out: • Within 6 months, each carrier will go online with individual database • Individual databases will be integrated and centralized among all major carriers 12 months thereafter • The FCC will engage the public safety community and wireless carriers in an ongoing dialogue, with regular, quarterly meetings, to ensure that the most effective technological processes are in place to deter smartphone theft and data exposure  • The FCC will launch a proceeding if progress on the above deliverables falls behind schedule