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CALIFORNIA BROADBAND PROJECT RECOMMENDATIONS

GOVERNOR ARNOLD SCHWARZENEGGER

October 14, 2009

Mr. Larry Strickling
Administrator
National Telecommunications and Information Administration
U.S. Department of Commerce
1401 Constitution Ave., N.W.
Washington, DC 20230

Dear Mr. Strickling,

More than 12 percent of Californians are unemployed, while many others are underemployed and finding it necessary to supplement their current incomes. Now more than ever, a fast, reliable Internet connection is essential across the state, as jobs are often posted, filled and performed online. It is clear that the expansion of broadband infrastructure across California could be a key to our economic recovery.

A recent study by the Public Policy Institute of California showed that even among those who could have access to broadband in California, some minorities and those with limited English cannot afford the service or have not recognized the potential. California has an opportunity to improve the lives of our urban and rural, low-income residents through increased broadband availability and afford ability. Telecommunications providers in our state have done well in wiring urban areas, but need assistance to expand broadband to the unserved areas of California.

While it is vital to spurring economic development and creating jobs, adding broadband availability beyond the urban cores is also an extremely expensive proposition. This is one area where American Recovery and Reinvestment Act (ARRA) funding can have a direct and profound impact. Broadband providers, nonprofit organizations, community organizations, municipalities and county governments have all joined together to develop ARRA projects and programs that will address needs in unserved and underserved areas.

We recognized several years ago that increased broadband availability was to be key to California's economic future. In 2006, I formed a Broadband Taskforce to bring together business leaders, academics, engineers and public policy experts to develop goals and action plans tor broadband expansion. My Broadband Task Force has prepared the attached information - outlines of California's broadband goals, the steps we took to determine them and the best tools to identify the served and unserved areas of the state - and I can confidently support the enclosed projects as consistent with our goals for broadband expansion and education.

These are the projects - and the ARRA investments - that will best allow us to meet our broadband goals, bring jobs to the vast unserved areas of our state and improve the quality of life for all Californians.

California Broadband ARRA Project Recommendations

October 14, 2009

Attachments

1. Appendix 1 - Allocation of Grant Funds to California
2. Appendix 2 - California Recommended Applications
   • Appendix 2a - Infrastructure
   • Appendix 2b - Sustainable Broadband Adoption
   • Appendix 2c - Public Computer Centers
3. Appendix 3 - Multistate Applications Headquartered in California
4. Appendix 4 - California Broadband Taskforce Goals and Priorities
5. Appendix 5 - Identification of Unserved and Underserved Areas

Appendix 1 - Allocation of Grant Funds to California

California is pleased to recommend a list of outstanding projects in each category (Infrastructure, Sustainable Broadband Adoption and Public Computer Centers) that are critical in driving forward California's economic growth and prosperity. These projects fill in the unserved and underserved areas of the state's broadband infrastructure. They provide broadband speeds that are far superior to the FCC definition of broadband and which are necessary for today's Internet user. They continue our ongoing work on nation-leading projects such as telehealth networks, digital literacy programs, and public computer centers focused on underserved populations shown to be slow broadband adopters by our state specific surveys. They bring needed public computer centers and broadband adoption programs to rural and remote areas of California, including tribal lands; urban disadvantaged; and people with disabilities. In short, these recommended projects can begin immediately. They will best allow California to achieve our ambitious but achievable broadband goals and objectives established in 2006.

The recommended applications are presented in alphabetical order in Appendix 2. We arrived at this recommended list after the applications were thoroughly reviewed by a team of telecommunications professionals and broadband experts. Many previously served on the California Broadband Task Force.

California prioritized review of applications for projects principally in California. We did not provide feedback on the multistate applications although there may be several worthy projects in that category, because it was difficult for us to assess the State specific impact of those projects. However, of the multistate applications, the list in Appendix 3 consists of companies that appear to be headquartered or have offices in California. Grants to those companies will have beneficial impacts on our State.

While those projects listed in Appendix 2 represent those most clearly aligned to our broadband goals, silence on an application should not be construed in any adverse manner as to that application.

We hope that NTIA will utilize this information in its deliberations in making its final awards.

If you have questions about California's broadband priorities, please contact Teri Takai, State Chief Information Officer at (916) 319-9223 or teri.takai@cio.ca.gov, Joe Camicia, Chief of Staff to CIO, (916) 549-7299 or joe.camicia@cio.ca.gov, or Rachelle Chong, Commissioner, CPUC, at (415) 703-3700 or crc@cpuc.ca.gov

Appendix 2 - California Recommended Applications

2a. Infrastructure

(In Alphabetical Order)

2b. Sustainable Broadband Adoption

(In Alphabetical Order)

2c. Public Computer Centers

(In Alphabetical Order]

Appendix 3 - Multistate Applications Headquartered in California

Grants of These Applications Will Benefit California

Acorn Technologies
America 2.0 Inc.
Common Sense Media
Cricket Communications Inc.
CWLab International Ltd.
Ikanos Communications, Ltd.
Logiclink, Inc.
Mission Economic Development Agency
National Medical Wireless Broadband Alliance, LLC
Operation HOPE, Inc.
Peer Plus One Communications, Inc.
Rural Communities United
Satellite Broadband ARRA Application LLC
Schatnet Internet LLC
Social Communications Company
Tactus Technology
Webpass Inc.
Wi2Wi, Inc.
WiViu Technology Inc.
Wi-Zee, LLC
ZeroDivide

Appendix 4 - California Broadband Task Force Goals and Priorities

As background, on November 28, 2006, Governor Arnold Schwarzenegger signed Executive Order S-23-06 (web link: http://gov.ca.gov/index.php?/executive-order/4585/) to commission a California Broadband Task Force (Task Force) "to remove barriers to broadband access, identify opportunities for increased broadband adoption, and enable the creation and deployment of new advanced communication technologies."

The Task Force produced its final report on December 15, 2007 (web link: http://www.calink.ca.gov/taskforcereport/). The Task Force adopted three broadband goals:

• California must ensure ubiquitous and affordable broadband infrastructure, made available through a variety of technologies to all Californians.
• California must drive the creation and use of applications that produce the greatest economic, educational, and social benefits for California's economy and communities.
• California must construct next-generation broadband infrastructure, positioning California as the global economic leader in a knowledge-based economy.

Through analysis of the Task Force's broadband mapping project and independent research, the Task Force determined:

• 1.4 million mostly rural Californians lack broadband access at any speed.
• Barely more than half of Californians have adopted broadband at home.
• Only half of Californians have access to broadband at speeds greater than 10 megabits per second (Mbps) (including both upstream and downstream speeds).
• Broadband infrastructure is deployed unevenly throughout the state, from state-of-the-art to nonexistent.

Thus, the Task Force recommended seven key actions to help our state achieve fast, reliable, and affordable broadband service:

1. Build out high speed broadband infrastructure to all Californians

Advancing new incentives for deployment and improving existing programs will create a world-class broadband infrastructure in California.

2. Develop model permitting standards and encourage collaboration among providers

Developing a public-private partnership between local governments and broadband providers to endorse permitting standards will improve the speed with which broadband is deployed.

3. Increase the use and adoption of broadband and computer technology

Expanding the opportunities for Californians to access, use, and learn broadband, at home and in the community will provide the foundation for a digitally literate society that is able to fully benefit from broadband technology.

4. Engage and reward broadband innovation and research

Promoting innovative uses of broadband technology and encouraging wider e-government use will result in quality-of-life improvements, while increasing demand for a robust broadband infrastructure.

5. Create a statewide e-health network

Implementing a sustainable statewide e-health network will improve quality of care across the state and simultaneously increase demand for broadband services.

6. Leverage educational opportunities to increase broadband use

Ensuring high-capacity broadband connections coupled with a robust technology support system, relevant curriculum, literacy standards, and off-campus educational partnerships will provide California's students with the skills they need to compete in a 21st century economy.

7. Continue state-level and statewide leadership

Continuing the California Broadband Initiative and supporting the creation of Community Broadband Leadership Councils will strengthen the statewide leadership necessary to drive broadband access and adoption across California.

Appendix 5 - Identification of Unserved and Underserved Areas

As to the identification of unserved and underserved areas within California's borders, please refer to California's updated broadband maps (as of August 10, 2009) which can be found at the following weblink:

http://www.cpuc.ca.gov/PUC/Telco/Information+for+providing+service/Broadband+Availability+Maps.htm

In 2006-2007, the Task Force undertook a broadband mapping exercise at the street address level that is described in the Task Force Report. California requested voluntary information from our broadband providers and mapped the information to produce the broadband availability maps, which include broadband speed information. You will see the original maps (wireline and wireless) as appendices to the Task Force Report. Since that time, the California Public Utilities Commission (CPUC) has updated the Task Force broadband maps with recent information from our state video franchise holders who offer broadband, and as to grants of the CPUC's California Advanced Service Fund program (a state funded broadband grant program; see web link http://www.cpuc.ca.gov/PUC/Telco/Information+for+providing+service/announcingcasf.htm for more information).

When assessing a broadband infrastructure application, NTIA will be assisted by referencing the California broadband maps when making its determination of whether the area is unserved, underserved or served. To the best of California's knowledge, the updated broadband maps kept by the CPUC are the most current and accurate available.