Women in Telecommunications May 21, 2007 Rich Motta CETF Treasurer/CFO

California Emerging Technology Fund

      November 2005 SBC/AT&T and Verizon/MCI merger agreements approved by CPUC Mission: To improve access to Broadband in the underserved communities Established as a Nonprofit Public Benefit Corporation $45M ($9M per year) over 5 years from AT&T $15M ($3M per year) over 5 years from Verizon Minimum of $5M focused on Telemedicine 2

CETF Board of Directors

            Mike Peevey (C) Barbara O’Connor (S) Rich Motta (T) Martha Escutia David Eun Joe Gross Barb Johnston Deborah Kaplan Jim Kirkland Lloyd Levine Mike Volpi Carol Whiteside President, CPUC Professor, California State University, Sacramento Consultant, Retired VP AT&T Attorney, Manatt, Phelps, and Phillips LLP (former State Senator) VP, Google President & CEO, Sustainable Systems Inc Exec Dir, California Telemedicine & eHealth Center Principal, Deborah Kaplan Consulting Senior VP, Covad Communications Assemblymember, California State Assembly Senior VP, Cisco Systems President & CEO, Great Valley Center (C) Chairperson (S) Secretary (T) Treasurer 3

CETF Mission

Provide leadership statewide to minimize the Digital Divide by accelerating the deployment of broadband and other advanced communications services to underserved communities and populations … this will be accomplished by making investments in programs and projects to improve access, affordability, adoption of applications, and accessibility to broadband 4

Digital Divide … Where Is It?

   Research and data reinforce that “Divide” is narrowing Availability of low cost DSL has helped narrow the “Divide” “Divide” still exists for select communities/populations – Consumers 65 and older – Consumers with annual income less than $30K – Consumers with less than a high school education – Consumers with Limited English Proficiency – Consumers that reside in “rural/remote rural” areas – Consumers with disabilities 5

CETF Strategic Plan

Initial “focus” of funding … - Rural and Remote Communities - Urban Disadvantaged Neighborhoods - Communities of People with Disabilities 6

Rural and Remote Communities

     Need to help “facilitate” the deployment of broadband infrastructure where none exists Satellite Broadband is not an affordable option for most consumers in rural/remote rural areas Need to help identify and remove “barriers to entry and operation” for new service providers … i.e., the availability of existing towers for use by new wireless broadband service providers Will seek to identify and leverage existing “publicly funded” infrastructure that can support the deployment of broadband Will “leverage” Telemedicine as an anchor application to justify the deployment of new infrastructure … make bandwidth available to support other applications including “commercial” use by entrepreneurs 7

Urban Disadvantaged Neighborhoods

    Focus efforts on “affordability” and “availability” of computing hardware, software, training, and technical support AND the “availability” of applications that would motivate consumers to join online society Embrace and engage the youth … get them online first, use them to support other’s efforts to go online Leverage public housing developments … establish centralized computing resources to support introduction First focus on those that “want but do not have” … once they are online they can act as “change agents” to get those who “don’t know they need” involved 8

Communities of People with Disabilities

    Every project and program that CETF funds needs to address accessibility for people with disabilities Focus on making hardware and software more “accessible” Focus on “universal design” standards that all hardware and software vendors can incorporate into their products and services Increase awareness that a major portion of the “internet” is inaccessible to individuals with disabilities … information providers need to take steps to correct 9

$60M Funding Will Not Go Far … We Need 1000 Times This Amount To Eliminate The Digital Divide

   CETF will attempt to leverage the $60M of “seed” funding through matching $$$’s from other public/private foundations and government agencies CETF will seek joint funding on every project that it funds CETF will seek to leverage the $60M into at least $250M 10

Seeking Input From Community

 Held regional meetings with Community Based organizations and agencies – What are their greatest needs – What is working … what is not – What are the “lessons learned” from the activities of the last 10 years – What projects and programs are best candidates for expansion or replication 11

Seeking Partnerships

    How can we leverage the efforts of other public and private foundations and funds How can we leverage the efforts of local, state, and federal governmental agencies to fund (grants and loans) the deployment of broadband technology in the underserved communities … i.e., the FCC grants focused on “Telemedicine Infrastructure” How can we get more business players in the “technology” sector to see the value in investing in the deployment of broadband technology Need to institute a “ConnectKentucky” like effort where we help facilitate the matching of consumer “need/demand’ with technology vendor's willingness to invest 12

Initial Funding Decisions

      Looking for larger projects that will have measurable multi year impact on the targeted population … i.e., FCC Telemedicine Grant Open to funding existing projects that have a proven track record of success … will fund to sustain, expand/scale, or replicate Have “invited” proposals based on fact finding for funding in May/June 2007 timeframe Will announce an initial “open” funding window in May/June 2007 timeframe with funding decisions made by 1Q 2008 Will initially seek to fund projects and programs that can deliver early success Will not entertain unsolicited grant requests … will consider only grant requests that “fit” the strategic plan 13

CETF Has A Monumental “Challenge” To Undertake

    CETF can not do it alone … it will take the combined efforts of all the public and private players to make it happen CETF wants to be additive … it wants to build off the existing successes CETF wants to be able to show measurable progress over the next 5 years so that other organizations are encouraged to invest CETF wants to lay the groundwork for a process and structure that will be sustained beyond the initial 5 year commitment by the funding organizations 14