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Page Page 1 Jim Martin Jim Martin CEO & President, Citynet, LLC CEO & President, Citynet, LLC Mike Friloux Mike Friloux SVP Business Development, Citynet, LLC SVP Business Development, Citynet, LLC One Goal, One Mission, One Cause One Goal, One Mission, One Cause To Support and Advocate for Proactive Broadband To Support and Advocate for Proactive Broadband Policy Policy Critical for West Virginia’s Economic Future Critical for West Virginia’s Economic Future Critical for Job Creation & Competing in the Critical for Job Creation & Competing in the 21 21 st st Century Century Critical for Public Safety, Education and Critical for Public Safety, Education and Social Welfare Social Welfare We can turn a disadvantage into an advantage, We can turn a disadvantage into an advantage, West Virginia West Virginia BROADBAND INFRASTRUCTURE BROADBAND INFRASTRUCTURE

Page 1 Jim Martin CEO & President, Citynet, LLC Mike Friloux SVP Business Development, Citynet, LLC One Goal, One Mission, One Cause To Support and Advocate

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Jim MartinJim MartinCEO & President, Citynet, LLCCEO & President, Citynet, LLC

Mike FrilouxMike FrilouxSVP Business Development, Citynet, LLCSVP Business Development, Citynet, LLC

One Goal, One Mission, One CauseOne Goal, One Mission, One Cause

• To Support and Advocate for Proactive Broadband PolicyTo Support and Advocate for Proactive Broadband Policy

• Critical for West Virginia’s Economic FutureCritical for West Virginia’s Economic Future

• Critical for Job Creation & Competing in the 21Critical for Job Creation & Competing in the 21stst Century Century

• Critical for Public Safety, Education and Social WelfareCritical for Public Safety, Education and Social Welfare

We can turn a disadvantage into an advantage, We can turn a disadvantage into an advantage,

the digital economy isn’t going to wait on West Virginia. the digital economy isn’t going to wait on West Virginia.

We must embrace proactive policies that work!We must embrace proactive policies that work!

West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

West Virginia’s Broadband ChallengeWest Virginia’s Broadband Challenge1.1. West Virginia Ranks 48West Virginia Ranks 48thth in Broadband in Broadband

2.2. We know what does not work (see item 1)We know what does not work (see item 1)

3.3. Transport Capacity Cost 20 to 30x vs. Enabled MarketsTransport Capacity Cost 20 to 30x vs. Enabled Markets

4.4. High costs prohibit expansion to rural markets.High costs prohibit expansion to rural markets.

5.5. High costs prohibit performance for enabled markets.High costs prohibit performance for enabled markets.

6.6. Why? And How do we fix it.Why? And How do we fix it.

How do we solve the problem?

West Virginia must adopt progressive policies that work, the status quo is not the answer.

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

Middle Mile State Broadband System

• Unlocks Hundreds of Rural Communities• Provides High-Capacity Fiber Systems• Provides Affordable Solutions• Extends Internet Backbone into WV• Data Super Highway System• 100% Open Access • Grows Denser with Time

• Virginia• Ohio• Pennsylvania• Are doing just this!• And they rank higher then WV!• Why?

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

Core SystemFuture Vision

Sustainable Anchor:

•Provides Reinvestment

•Provides Growth

•Long-term Enablement

•Benefits Everyone

We must establish the sustainable anchor and visualize the future with a proven model of

enablement.

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Middle Mile Solutions WorkMiddle Mile Solutions Work

SUCCESS FACTORSSUCCESS FACTORS

• Core Middle Mile SystemCore Middle Mile System (achieves economies of scale)(achieves economies of scale)

• Federal or State FundingFederal or State Funding (removes economic cost barriers)(removes economic cost barriers)

• Affordable PricingAffordable Pricing (enabled by Federal or State Funding)(enabled by Federal or State Funding)

• Sustainable Economic Plan Sustainable Economic Plan (system self funds its own growth)(system self funds its own growth)

• Complete Service SuiteComplete Service Suite (diverse services for diverse needs)(diverse services for diverse needs)

• Equal & Open Access to AllEqual & Open Access to All (equal terms and pricing for all users)(equal terms and pricing for all users)

KEY BENEFITSKEY BENEFITS

Reduces Transport Costs by 90%

Unlocks Affordable Access for hundreds of Rural Communities

Stimulates Competition, Choice, Advanced Service Offerings

Delivers 100% Open Access – A Shared Data Superhighway

All Benefits Flow to End-Users – More Options, Lower Costs, Better Services

West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

Broadband is Critical to the Economic and Social Future of WV

Broadband expansion cannot occur without a Competitive Middle Mile Solution

West Virginia’s Broadband Future is a Choice

Middle MileProven Solution That Works

Durable Long-term InfrastructureResolves Transport Cost Issue

Maximizes Broadband Enablement

Last MileIsolated & Limited Fiber Builds

Minimal BenefitsAvoids root issue

Only benefits State Agencies

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West VirginiaWest VirginiaBROADBAND INFRASTRUCTUREBROADBAND INFRASTRUCTURE

Jim MartinPresident & CEO

Citynet, LLC

304.848.5412

[email protected]

www.westvirginia.com