Appalachias Information Age AppalachiaHarry L. RoeschSenior Telecommunication AdvisorRTC Conference Springfield, IllinoisOctober 2007

The ARC has approved in excess of $300 million in support of telecommunications projects since 1972

Appalachian States

13 states

410 counties

200,741 sq. miles

23 million people

72 local development districtsAppalachian Region

Facts and issues about the RegionIn 2002, 42% of the ARC population were classified as being rural compared to 20% for the nationIn FY 2007 78 /410 counties were classified as being Distressed based on ARC criteria. DSL or cable modem access from a cable TV service provider is generally the only affordable broadband services in Appalachia.

1972 1985 HistoryARC invested millions of dollars in satellite down link and microwave equipment, early generation tapping equipment, and nascent network development [UK was the up-link site for all educational programming] ARC underwrote the development of program content, and facilitated simultaneous educational programming provided throughout the region

1985 - 1990Throughout the 1980s the ARC continued to support the development / transmission of expanded educational curriculum materials using microwave technologiesNumerous small educational networks began to be developed and TVA was early partner in project development and project managementMany networks initially used T1 lines to facilitate connectivity10s of Millions of dollars were invested

1991 Knoxville ConferenceThis jointly funded conference co-sponsored by the TVA, telecommunication service providers, universities, and others attracted over 350 people the conference.

Post the conference the ARC reserved $265,000 to fund small Multi-County Strategic Telecommunications Plans throughout the Region.

1992 199310 strategic telecommunications planning projects were funded: NY, Ohio, PA, MD, VA, SC, NC, WV often more than one in a state

1992 1994 Once the planning programs were completed, numerous small networks were funded by the ARC - with NY funding 14 educational networks based on the planning effortsthat were underwritten

ARCs First Telecommunications Regional Initiative Program1995 - 1998

Over 130+ projects were funded over the 4 year period of time totaling over $12,000,000 5 new state region-wide strategic telecommunications plans were approved: AL, Pa, KY, TN, NC and numerous other special demonstrations projects in education, telemedicine, business, and government were approved

1999 - 2007More strategic telecommunications planning projects were funded - GA, KY, ALDemand Aggregation projects were funded - NC, Ohio, KY, MD, PA, KYNumerous multi sector user networks were funded - AL, GA, NC, KY, PA, MD, NY, NC, VA, WVand, all types of innovative implementation and TA projects were funded: Cyber Campuses NC, several non-profit ISPs established in GA, OH, and Help Desks TN, MD, OHE - demonstrations PA, NYThe ARC annually approves between $4-6 Million dollars worth of telecommunications projects

Demand Aggregation projects and other state efforts the ARC is closely monitoring:KYs CITE / ConnectKentucky program, and Ohios Access Appalachia NCs - NC Rural Internet Access AuthorityNCs -Appalachian Access projectMississippis -The Create Foundations - MEGAPOP project to expand High-Speed Broadband connectivityPennsylvanias - 3 county wide demand aggregation projectsAnd Marylands Allconet2 E-business network

ARCs New ProgramInformation Age Appalachia Approved 11/2001A program to help the Appalachian region to overcome the Digital Divide and ensure that affordable high-speed telecommunications services become a reality in the region

ARCs IAA Program focus.Improve access to infrastructure through strategic planning efforts, assisting with Demand Aggregation efforts, and in some cases actually installing some critical necessary infrastructure; Provide education, training, and workforce development programs on IT to benefit all sectors of the economy with enhanced educational and TA materials;Assist S & M size businesses with E-commerce readiness training programs, working with trade associations, and other organizations, and with specific business sectors in developing overall improved IT utilization opportunities in the region;Develop new Technology Sector strategies that will assist the region in capturing more IT sector business.

IAA Program In-house program was funded at $1,000,000 + over the period of FY 2002 - 2004Guiding Principles

Emphasis on the Distressed areas in the regionBuilds on ARCs partnership modelFunds only projects that are locally sustainable 2 sector beneficiary required for all funded projectsAssists the region to find affordable solutions Builds on local capacity in individuals / organizationsDA Workshops are still being offered

IAA In-house - Accomplishments26 Aggregation of Demand Workshops have been held, and 4 funding workshops, and 4 E-Rate workshops have been held5 Wireless Demonstrations projects are now underway in NY, OH, and WVCarnegie Mellon U. TA contract approved WV / PA initially wireless demonstrations6 - Conferences supported including: - 2 - Rural Telecommunications Congress Conferences 5 E-commerce Tourism / Arts / Crafts projects funded in 2003Continued central office TA services

A special set-a-side of $2 Million was reserved for telecommunications and other initiatives projects in FY 2005-2007

Types of projects funded under the $2 M set-a-side:Improved access to infrastructure [AL, VA, PA, MD, MS, TN, NY, WV, NC]Improved education, training, workforce development [AL, NY, NC, MD, SC, TN]Assisted businesses with E-commerce readiness programs [PA, MD, NY, AL, VA, ]Assisted in Tech Sector development employment programs [WV,KY, TN, KY]Expanded partnership arrangements were developed throughout the region to enhance telecommunications improvements in the region [PA, KY]Worked with local stakeholders to improve their technical knowledge of the Information Age issues through Strategic Telecommunications Planning [AL, KY, VA, SC]

13 states

410 counties

200,741 sq. miles

23 million people

72 local development districtsAppalachian Region

Cable Internet Access Available, 2000(In Parts or Whole of County)Cable Internet Access AvailableNo Cable Access

Cable Internet Access Available, 2003(In Parts or Whole of County)Cable Internet Access AvailableNo Cable Access

4 or More DSL-Ready Telephone Switches1 3 DSL-Ready Telephone SwitchesNo DSL AccessDSL Internet Access Available, 2000(In Parts or Whole of County)

4 or More DSL-Ready Telephone Switches1 3 DSL-Ready Telephone SwitchesNo DSL AccessDSL Internet Access Available, 2003(In Parts or Whole of County)

No High-Speed Provider1 3 High-Speed Providers4 or More High-Speed ProvidersCompetition & Service of High-Speed Internet Providers, 2000(by ZIP Code)

No High-Speed Provider1 3 High-Speed Providers4 or More High-Speed ProvidersCompetition & Service of High-Speed Internet Providers, 2002(by ZIP Code)

ARC based activities that benefit the statesThe ARC continues to offer Aggregation of Demand workshops throughout the region as requested. [past recipients PA, MD, MS, OH, VA, NY, AL, WV, KY, VA, GA] ARC continues to expand its outreach / working relationships with foundations, trade associations, non-profits, industry, businesses, etc. [Motorola / Microsoft]ARC has created an On-line telecommunication resource center within the ARC WEB site www.ARC.GOV to help the region find resources to fund telecommunication related projects at the local level.

Critical Types of Applications Needed in Appalachian Communities Telemedicine, E-Commerce, E-government, Distance Learning

The ARC will fund all types of projects that further the adoption of applications in the region, but projects must be multi - sector in nature

Distance Learning ARC will fund Distance learning programs that improve the quality of education curriculums for school system, colleges and universitiesARC will fund Advanced Placement / dual enrollment programs that are offered by colleges / universities inspires students to go to collegeARC will fund Community Access Centers that offer / provide in-place continuing educational opportunities for all residentsARC will continue to fund expanded Workforce training and Adult Literacy programs

Telemedicine and Telehealth ServicesIt is now becoming a standard of practice for the reimbursement industry to reimburse for telemedicine services [ Medicare, Medicaid, Blue Cross, etc.] Telemedicine programs improve the overall access and delivery of quality health careHospitals, clinics, laboratories, and doctors offices are now routinely sharing patient information [Informatics] utilizing Internet connectivity to improve the quality of patient care and case managementDisease Management and post operation follow-up services are now being routinely facilitated by in-home telemedicine devices using POTS lines

E-CommerceBusinesses are discovering that a Robust WEB site means potential new market penetration and new salesMany businesses are now being required to do business on-line / ISO-9000 certified businesses now require Electronic Commerce Interface with other ISO-9000 businessesBusinesses are using video-conferencing: to market their products, conduct routine administrative in-house services, and provide continuing educational services to staffBusiness assistance services offered by IDAs, SBDCs, Chambers of Commerce, etc. are now being frequently provided through routine on-line training and In-house training programs for businesses

E-GovernmentGovernments are now offering on-line services that provide routine information on taxation, public hearings, minutes and agendas of meetings, plans under review, etc. Governments are now offering all types of ways to do E Government business on-line: register cars, get license plates, pay taxes, get business licenses, locate services within the government, conducting surveys on-line, and providing ways to contact elected officials on issues Criminal justice services are now routinely being done through video conferencing services including arraignments, and medical assessments, routine hearings, pre-trial motions, expert witness testimony services Governments are now offering all types of economic and social development services through WEB sites and on-line services

Where to get help from Federal Programs that the ARC can partner with:. Rural Utilities Service Program D O Agriculture www.usda.gov/rus/telecom.dlt.dlthtmNeighborhood Network Program & CDBG / Small Cities Program - DHUD Community Technology Centers, - DOED Universal Service Fund Program / E-Rate - FCC www.universalservice.orgOffice for the Advancement of Telehealth OAT http://telehealth.hrsa.gov

How to apply for ARC funds:The ARC WEB site at www.ARC.GOV should be first opened Look up states sub-directory AL WV, and locate the name of the State ARC Program Manager.Contact your States Program Manager and discuss the nature of any project before you put anything on paper!!!!! The states invite the proposals / applications not the ARC!

Resources beyond Federal and State funding are needed to close the telecommunications gap..

Corporate and foundation funding will continue to be sought by the ARC over the coming years to augment ARC funding that will be pledged to the implementation of the IAA program.

This is clearly a Human Resource Development / Economic Development issue that applies to all sectors of the Appalachian economy - High-speed Broadband telecommunications services will underpin all aspects of the Information Age society in the future..

Thank You Harry L. RoeschSenior Telecommunications Advisor Appalachian Regional Commission1666 Connecticut Ave., N.W.Washington, D.C.202-884-7774 phone202-884-7682 fax

Point 3 - Wood products, textile, automotive, IT sectors Point 4 joint working relations NBIA, Chambers, SBDCs, assist funds Smart ParksHigh Tech Incubators, assist access to Venture capital / credit services