ConnectKentucky: Accelerating Technology in the Commonwealth!

1. ConnectKentucky: Accelerating Technology in the Commonwealth!

2. Accelerating Technology in the Commonwealth! • ConnectKentucky’s mission is to accelerate the growth and economic development of technology in Kentucky. • How: By using the collective knowledge of representatives from state, local, and federal government, universities, numerous private sector companies, and economic development organizations. ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

3. National Best Practice • As a technology-based economic development alliance, ConnectKentucky has gained national acclaim as a “best-practice” in new economy strategies, recognized most recently by the U.S. Economic Development Administration as a finalist for its “Excellence in Innovation” award. ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

4. Making Progress a Priority 44 – 45 – 43 • 44th– Kentucky ranking for proportion of high-tech companies • 45th – Kentucky ranking for citizen computer use • 43rd – Kentucky ranking for citizen Internet use • To improve the first point, we must address the latter two ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

5. House Bill 627 •  AN ACT relating to the provision of broadband service. “Create new sections of KRS Chapter 278 to find that state-of-the-art telecommunications is essential and that market-based competition creates innovation and reduces cost; add definitions for "ARMIS," "basic local exchange service," "broadband service," "competing local exchange carrier," and "telephone utility"; prohibit any type of state regulation of broadband services; prohibit the implementation of any requirement on facilities or equipment used to provide broadband; prohibit any type of state regulation of broadband rates, the terms of broadband service, or entry by providers into the broadband market; sunset any existing requirement on broadband service; affirm that the duties of local exchange carriers to provide unbundled network elements to providers to the extent required by federal law; affirm the right to charge for access and other charges for broadband services; affirm the right of service providers to obtain access to the publicly switched network.” ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

6. Project History • October 2001CiTE was the successful bidder on a Request for Proposal for a Strategic Statewide Technology Capacity Initiative. This began public-private partnership between Kentucky’s Office for the New Economy, private industry, the state’s universities and CiTE. • CiTE renamed this statewide technology initiative, ConnectKentucky. • May 2002John R. Hall, Retired Chairman and CEO of Ashland Inc. and Dr. William G. Brundage, Commissioner of Kentucky’s Office for the New Economy were named Co-Chairs of the ConnectKentucky initiative by Kentucky’s Governor. • August 2002CiTE announced 24 founding Connectkentucky Partners participating in the statewide technology-based initiative. • September 2002CiTE released ConnectKentucky Report 2002, Kentucky Prepares for the Networked World. The first in a series of three reports designed to assess and plan for Kentucky’s participation in the networked world. • January 2004Kentucky Governor Ernie Fletcher, along with ConnectKentucky Partners, released the second report, Kentucky’s Information Technology Imperative, outlining progress and next steps in rural broadband deployment for the Commonwealth of Kentucky. ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

7. Project Goals • Increase public awareness of the benefits of e-commerce, e-government, and e-learning to Kentucky’s businesses, governmental agencies and citizens • Implement market driven strategies that increase business, consumer, and government use of the Internet • Implement public policy initiatives that promote competition and eliminate regulatory barriers to increase Internet usage and enhance broadband deployment throughout Kentucky ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

9. Partnership Commitment STEERING COMMITTEE PARTNERInvestment: $20,000 • One (1) seat on connectkentucky Steering Committee (meets quarterly) • Four (4) complimentary passes to annual programs (technology awards, conferences, etc.) • Logo featured in connectkentucky publications & news (including annual report) • Private access to monthly communications & newsletters • Governmental affairs support & planning assistance • Priority access to powerful market knowledge through technology research reports • Input to connectkentucky research surveys • Your company featured in connectkentucky news releases and educational campaigns • Your company logo and link on connectkentucky website • Use of connectkentucky logo on company stationery and website ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

10. Partnership Commitment SUPPORTING PARTNERInvestment: $10,000 • Two (2) complimentary passes to annual programs (technology awards, conferences, etc.) • Private access to monthly communications & newsletters • Priority access to powerful market knowledge through technology research reports • Your company logo and link on connectkentucky website • Your company name featured in connectkentucky publications MEMBER • Open to non-profits, individuals, and companies with fewer than 150 employees • $500 annual membership fee for companies with fewer than 100 employees • $1,000 annual membership fee for companies between 100–150 employees • Private access to monthly communications & newsletters • Priority access to powerful market knowledge through technology research reports • Opportunities to network with technology decision-makers throughout the year ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

11. Quotes Governor Ernie Fletcher: • “ConnectKentucky represents the high priority that our Commonwealth has placed on excelling in the technology economy. We must continue to identify the Commonwealth’s challenges and opportunities for knowledge-based growth and to build partnerships that put Kentucky on the cutting edge.” Senator Mitch McConnell: • “I applaud the team at ConnectKentucky for their vision and hard work and congratulate them on their national recognition. ConnectKentucky has brought together businesses, government agencies and educational institutions and made a real impact on Kentucky’s technology infrastructure and economy.” Michael B. McCallister, Humana's President & CEO and ConnectKentucky partner: • Information technology enables every potential “new economy” industry sector in Kentucky and across the nation. From a healthcare perspective, advancing information technology contributes to significant cost savings for physicians and taxpayers, and enhances services to the citizens of Kentucky. ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

12. Strategic Resources • Technology Planning Team • Central planning resource representative of key stakeholders throughout Kentucky • Statewide Broadband Group • Improves Technology/Broadband Infrastructure • Technology Solutions Group • Provide applications that drive demand and develop strategic relationships • Research & Governmental Affairs Group • Promotes Favorable Public Policy based on Research • Communications & Public Relations Group • Provides Positive Communications and Public Relations • Economic Development Group • Recruits individuals and high-tech companies ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

13. Governor Fletcher’s “Prescription for Innovation” Initiative announced October 7th, 2004: “Governor Fletcher today announced a comprehensive broadband deployment and adoption plan that will leverage state, federal and private dollars to blanket Kentucky with broadband Internet access, encourage citizen use of computers and the Internet, and provide every Kentucky community with an online presence for delivering citizen services and promoting economic development.” ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

14. Governor Fletcher’s “Prescription for Innovation” Adoption Addresses “5 A’s” of technology adoption Affordability Applications Awareness Availability ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

15. Governor Fletcher’s “Prescription for Innovation” Expected Outcomes: • Full broadband deployment by 2007 • Statewide inventory of existing broadband and telecommunications resources in form of GIS-based maps • Improved residential use of computers and the Internet • Meaningful online presence for every local community with ready-to-offer citizen services • Economic development resource provided to each local community in form of technology inventory and improved telecommunications assets ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

16. Governor Fletcher’s “Prescription for Innovation” Benefits: • Collaboration between state, local and federal government, universities, community organizations, and private industry • Leverage of state dollars into investment from federal government and private industry • Effective integration and use of existing state broadband infrastructure resources • Improved Community buy-in and awareness • Economic development resource provided to each local community in form of technology inventory and other telecommunications assets • Recent research revealed that broadband deployment throughout Kentucky could add 14,000 jobs and $5 billion in gross state product.* *TeleNomic Research, February 25, 2002 and Criterion Economics LLC, September 23, 2003 are available at http://www.newmillenniumresearch.org/archive/ ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

17. Governor Fletcher’s “Prescription for Innovation” • Work led by ConnectKentucky with oversight from John Hall, Darrell Brock and Jim Host Initiative Components: 1) Community Assessment (with local leadership team) • Education; healthcare; small business; EDOs, etc. • Local Government analysis • Consumer surveys 2) GIS Mapping (with assistance from ADDs and KIA) • Inventory of local broadband infrastructure availability: ILEC, CLEC, Wireless, Cable, Other 3) Business Planning/Funding Assistance • Use Assessment and Inventory to provide Gap analysis • Identify funding resources and assist in securing funds 4) Infrastructure Expansion Project Management • Support engineering design/planning and build-out of infrastructure 5) Community Awareness/Adoption (coordinated with COT) • Provide a meaningful online presence for every Kentucky community to facilitate citizen services and encourage demand • Public relations and other demand-side efforts to improve technology adoption ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

18. Sample Local Leadership Team • County Judge Executive • Mayors of incorporated cities • Area Development District representative • Superintendent of schools • Higher Ed and Technical College reps. • Chamber of Commerce leader • Hospital CEO • Local service organization • Agriculture representative • State and/or federal legislative representatives ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

19. The Bottom Line • Inventory current technology use and infrastructure • Understand where the community is with technology and what is the future vision • Close the gaps between 1 and 2 • Build awareness and excitement about broadband and related technology • Support applications and services that make broadband relevant to everyone ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

20. The Vision Demonstrated • Education: • Project First Class piloted in 3 Louisville schools equips every teacher and student with laptop computer and wireless Internet access • Healthcare: • Humana’s web-driven Availity system helps save millions of dollars in transaction-related costs • St. Claire Medical Center connects patients in Morehead with doctors in Lexington and beyond via broadband video conference • Business Development • Fort Knox National in Hardin County • Carlson Software in Mason County • Uncle Lee’s Sporting Goods in Hopkins County • Data Futures in Harlan County • Tarter Gate in Casey County • Citizen Services: • Online voting for new brand, Unbridled Spirit • Freedom calls – families and soldiers communicated via video conference during UK/UL basketball game ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

21. Timeline • September 9, 2004 - Brock and Host appointed to ConnectKentucky Steering Committee at quarterly Steering Committee meeting. • October 7, 2004 - Governor announces Statewide Broadband Initiative with public and private representatives from ConnectKentucky Steering Committee. • October 15, 2004 - Assessment and mapping begins (phases complete every 6 months). • October 25, 2004 - Community strategic planning begins • April 1, 2005 - First phase of statewide assessment and mapping completed. • July 1, 2005 - First community plans completed. • August 15, 2005 - First applications for KIA / RUS funding completed. • October 1, 2006 - Second phase of statewide assessment and mapping completed. • November 1, 2007 - Infrastructure gaps closed, Community plans completed. • Jan – Dec 2008 - Data continuously updated; Communities supported ConnectKentucky: Accelerating Technology in the Commonwealth! www.connectkentucky.org

22. Digital Cities ConventionPhiladelphiaMay 2-4, 2005 ConnectKentucky: Accelerating Technology in the Commonwealth!