FCC's CAF II Program expands high-speed internet access in Kentucky

1. Overall, the FCC’s CAF II (ROFR) Program will Expand High-Speed Internet Access to over 152,000 Homes and Small Business Locations in Kentucky • The FCC’s Connect America Fund (CAF II) is a multi-year effort that aims to extend the reach of high-speed internet access networks in rural, high-cost areas of the country. • CAF is part of the FCC’s modernization of its universal service support programs. • Comparable to efforts that extended other infrastructure in the twentieth century: • e.g., electricity, phone service, interstate highway system. • Nationally, CAF II will accelerate build-out to over 3.6 million homes and small businesses which lack access to adequate broadband infrastructure: • Phase II of the CAF program (i.e., CAF II) makes $9B available over six-years for industry to expand broadband-capable networks throughout rural America. • Carriers receive funding in exchange for state-level commitments to build to a certain number of locations within their traditional, incumbent service territory—over 3.6 million nationwide by year-end 2020. • Eligible areas are defined by the FCC at the census block level (~10 households per CB on average).

2. The FCC’s CAF II Program Will Provide $327M to Expand High-Speed Internet Access in Kentucky • In Kentucky, carriers participating in the program (AT&T, Cincinnati Bell, and Windstream) will use CAFII support to offer high-speed internet access to more than 152,000 homes and small businesses in FCC-identified areas via a $327M investment over six-years. • For many of these communities, they will jump from dial-up connections or very low bandwidth services to at least 10 Mbps service—which represents a tremendous leap in terms of speed. • Under CAF II, 40% of committed locations were to be reached by 2017 with an additional 20% required in 2018 and 2019, reaching 100% build-out by year-end 2020. • Funds will be used for deploying, maintaining, and offering internet access and voice service in FCC-identified areas. • Service must meet the following basic service • requirements: • Minimum 10 Mbps download/1 Mbps upload. • Up to 170 GB monthly usage, subject to annual increases. • Pricing comparable to urban rates.

3. Statewide, Industrywide Overview of CAF II Support for Price Cap Carriers CAF II Supported Areas CAF II PC Carrier Supported Locations Price Cap (PC) Carrier AT&T 84,333 Cincinnati Bell 6,339 Windstream 62,070 = 152,742 Map Source: https://connectednation.org/wp-content/uploads/maps/fcc-maps/ky_cafphaseii_082715_commitments.pdf

4. AT&T Fixed Wireless Internet: Connecting rural homes & businesses to the benefits and opportunities empowered by high-speed Internet. • In August 2015, AT&T accepted $427M in annual CAF II support for each of next 6 years. • Over $30M accepted for KY alone. • These funds will be used for deploying, maintaining and offering Internet access in FCC-identified census blocks in 18 states in AT&T’s traditional exchange areas. • In total, service will be offered to 1.1M homes and small businesses in these largely rural, FCC-identified census blocks. • In Kentucky, AT&T will use the CAF II support to offer high-speed Internet access to more than 84,000 homes and small businesses in the FCC-specified census blocks, primarily via Fixed Wireless Internet (FWI) technology. • AT&T’s Fixed Wireless Internet service uses a fixed-wireless “last mile” connection between the fiber at a cell tower and the customer premises to provide high-speed Internet access. • AT&T FWI service supports speeds of at least 10 Mbps down and 1 Mbps upload.

5. ABOUT | AT&T Fixed Wireless Internet

6. CAFII/FWI Eligible Areas are Broadly Distributed Across AT&T’s Rural Territory in Kentucky Legend Extremely High Cost Area AT&T Traditional Service Territory CAFII Supported Area State Boundary

7. AT&T Kentucky: Fixed Wireless Internet Availability Disclaimer: All information within this product is believed accurate but is not guaranteed without error. While attempts have been made to insure the correctness of the information presented, neither the Kentucky Public Service Commission nor any party involved in the creation and compilation of this data guarantees the accuracy or completeness of the data, nor its suitability for a particular use. All critical information should be independently verified.

8. AT&T’s Internet Access Is Now Commercially Available to over 39,000 Eligible Homes and Small Businesses in Parts of Kentucky • AT&T is committed to meeting its CAFII commitment: • AT&T exceeded its year-end 2017 requirement of over 33k locations for KY. • AT&T enabled internet access for 37k locations as of 12/31/2017. • Majority by way of Fixed Wireless Internet (FWI). • A cumulative total of 50k locations will be offered the internet access by the end of 2018. • Service is being offered on a rolling basis throughout the year as new areas are enabled. • As service becomes available, AT&T has been advertising service availability by way of Print Ads, Direct Mail and other marketing tactics. • AT&T is on track to reach 84k locations by year-end 2020 in KY. • Through this effort we’ve brought new opportunities, information, education and entertainment to areas where a quality internet connection wasn’t available.

9. Today, FWI service is available to parts of 53 counties throughout Kentucky

10. Cell Site Shelter Electronics FWI Enabled Cell Tower Outdoor Wireless Antenna Residential Wi-Fi Gateway Power Backup Generator Equipment Shelter FWI Enabled Cell Site