STRATEGIC COMMUNITY ALLIANCES

1. APPA Broadband Workshop 2004 STRATEGIC COMMUNITY ALLIANCES Delivering broadband service to rural Indiana: The Public Power connection Raj Rao, President Indiana Municipal Power Agency

2. Scottsburg, Indiana • Southern Indiana • County seat of Scott County • 29 miles north of Louisville, Kentucky • Population – 6,000 • Mayor Bill Graham • Electric peak – 29 MW • One of 40 members of Indiana Municipal Power Agency Raj Rao – IMPA

3. The need for Broadband • Started with a vision for a high tech center in Scottsburg • Mayor Graham realized that the educational level of the community was falling short of state and national averages • While the city is not far from several community colleges in the region, many of its citizens are not able to afford the cost of college, nor have the transportation to get to a regional campus • The Life-Long Learning Center, opened in 2001 was a start, but the community realized it needed more to keep its companies and youth around. Raj Rao – IMPA

4. The need for Broadband • Technology Committee formed in spring 2002 to begin planning the high tech Community Campus • Included business people, school system and up-and-coming youth in the community • Study conducted by Ball State University to assess technology needs of local businesses • 76% of respondents accessed the Internet at least 3 times a day • 96 % of these use the Internet for business purposes • Area heavily dependent on dial-up service • Most of those surveyed said they would be willing to spend up to 20% more for high-speed access Raj Rao – IMPA

5. The need for Broadband • City began to contact local telecommunications and cable providers about providing high-speed service to Scottsburg • Verizon told them the market wasn’t large enough for them to invest in • Consultants for cable companies and other providers wanted big $$ to simply assess the potential before they would even consider installing “the last mile” of fiber. Raj Rao – IMPA

6. The need for Broadband • About that time, Mayor Graham began to get phone calls: • Chrysler dealership and repair shop would have to close if high-speed access wasn’t available (costing the city 66 jobs) because all of their training and repair manuals are on-line • Residents who worked at home in medical transcription for Louisville hospital told the mayor they would have to move because their job depended on high-speed access Raj Rao – IMPA

7. Public Power to the rescue! • Mayor called IMPA • IMPA called contacts in Kentucky • Found that Owensboro was providing wireless access • Scottsburg group visited Owensboro • By December 2002, Scottsburg had signed with Alvarion to provide wireless technology • Citizens Communications Corp. (C3) was launched in January 2003 Raj Rao – IMPA

8. Public Power to the rescue! • The system was funded by the very healthy Scottsburg Municipal Electric Department • Invested $385,000 with the expectation of a seven-year return on investment • Three months after the contract was signed, the first customers began receiving high-speed Internet service. Raj Rao – IMPA

9. Success! • In the first 23 days, Citizens Communications Corporation had: • 30 retail • 15 commercial • 25 residential customers signed up with over 100 on the waiting list! Raj Rao – IMPA

10. Success! • To date (as of Sept. 24, 2004): • Total of 534 customers • 98 businesses • 436 residents • Waiting list of over 75 businesses and residents in surrounding areas ALL OF THIS WAS ACCOMPLISHED WITHOUT THE NEED TO DO ANY MARKETING! The need was that great. Raj Rao – IMPA

11. Success! • Citizens Communications Corp. has 21 towers and serves • Scott, • Jackson, • Washington, • Jefferson, • Jennings, and • Clark Counties Raj Rao – IMPA

12. Success! • Costs run around 40% below the average high-speed rate in Indiana • $200 a month for T-1 speed wireless • The school system alone saves about $6,000 a month in telecommunications costs • Residential price: $35/month Raj Rao – IMPA

13. Successful Alliances • In April 2004, Scottsburg’s Community Campus was named the 8th “Certified Technology Park” in the state • Home to the Life-Long Learning Center • Technology, Innovation and Entrepreneurship Center – focusing on enhancing local economic development and training • Increases Scottsburg’s vision as a high-tech center in southern Indiana Raj Rao – IMPA

14. Successful Alliances • Electric Utility • funding, staffing, installation & support services • Scottsburg businesses and industries • Served as beta-testers for the system • The founding of the Technology, Innovation and Entrepreneurship Center allows them access to high-tech training and business start-up resources • It also allows young people to train for and do high-tech jobs without leaving Scottsburg Raj Rao – IMPA

15. Successful Alliances • Training & Retaining Scott County youth • The addition of C3 to the community means that the city’s younger generation no longer need to find employment in larger metropolitan areas • C3 itself provides work for many area young professionals • Beth Konkler, 28, employee of the city now serves as C3 director • She and others provided the energy and drive necessary to promote the service without traditional marketing means • Many installers are recent college graduates • Scott County Schools were some of the first to use and promote the technology • Internet “cafes” being installed in schools so students without computers at home can use them Raj Rao – IMPA

16. Citizens Communications Corp.2 E. McClain Ave.Scottsburg, IN 47170Office: 812.752.7204 Fax: 812.752.5332 Beth Konkler, C3 Director Jim Binkley, Utility Superintendent & C3 Installation Manager Raj Rao – IMPA