1FCC CHAIRMAN GENACHOWSKI & CONNECT2COMPETE PARTNERS ANNOUNCE ADOPTION PILOT PROGRAM THE CARLOS SLIM FOUNDATION JOINS CONNECT2COMPETE; FOCUSES ON DIGITAL LITERACY C2C PROGRAM TO EXPAND ACROSS THE U.S. IN FALL, WILL INCLUDE ALL 50 STATES IN 2013 FIRST MULTILINGUAL, MULTIMEDIA, NATIONAL AD COUNCIL CAMPAIGN ON DIGITAL LITERACY TO LAUNCH IN JANUARY 2013 Chairman Genachowski was joined by Connect2Compete (C2C) members, including Cox Communications, Redemtech-GoodPC, The League of United Latin American Citizens (LULAC), and Carlos Slim at Horace Mann Middle School in San Diego, CA, to announce progress on a national effort to close the broadband adoption gap. C2C is piloting their program with 39,000 eligible students in San Diego, and includes $9.95 monthly broadband service and discounted computer offerings for eligible school lunch children & their families. I. Connect2Compete San Diego Broadband Adoption Pilot Program § The C2C San Diego pilot program is designed to test key elements of the national broadband adoption initiative set to launch across the country in fall 2012. The pilot program runs through June 30, 2012. across six San Diego County school districts, comprising 56 schools, and nearly 39,000 students. § Broadband Offering: Pilot offerings include $9.95 + tax monthly broadband service from Cox Communications. The service is available with no installation, activation, or modem fees. § PC Offering: GoodPC is offering either a $150 + tax laptop or desktop with LCD monitor. Both are equipped with Windows 7 Home Premium and MS Office 2007 ($250 software value) and include free shipping, 90 days phone PC tech support, one year software tech support, and 90 day extended warranty. § Eligibility: Eligible families must (1) have at least one student enrolled in the Free School Lunch Program, and for the broadband offering, also (2) not be a current Cox broadband subscriber (or have subscribed in the last 90 days), and (3) not have an overdue bill or unreturned equipment with Cox. § Partners: Additional pilot partners include: The National Cable & Telecommunications Association (NCTA), Connected Living, Solix, and Altman Vilandire & Company. II. Carlos Slim Foundation (Fundación Carlos Slim) announces support for Connect2Compete § Will support C2C’s efforts to extend broadband to unconnected Latino households across the country. § Includes support for a nationwide bilingual Ad Council campaign on digital literacy and broadband adoption, support for digital literacy training materials, and operational support for partnerships with schools, cities, countries, non-profit organizations, and technology companies. § Will share best practices learned from its years of international broadband adoption and digital education advocacy. § Carlos Slim Foundation joins C2C governing board as a founding member. III. Connect2Compete Phase One Launch and Leadership § Beginning in Fall 2012, C2C will launch phase one of its low-cost broadband connectivity initiative across the country; the C2C program will expand to all 50 states in January 2013. § Participating Internet service providers include: Bend Cable, Bright House Networks, Cablevision, Charter, Comcast (via their Internet Essentials program), Cox Communications, Eagle Communications, GCI, Insight, Mediacom, Midcontinent, Sjoberg’s Cable, Suddenlink, and Time Warner Cable. 2§ Digital literacy includes in-person training, through coordination with Best Buy’s Geek Squad and thousands of other partner training locations, including America’s schools and libraries. C2C will also launch an online basic and advanced digital literacy training curriculum. § C2C is incorporated as an independent, national non-profit and named Ben Hecht, currently President and CEO of Living Cities, as Chairman of the Board. IV. Connect2Compete and Ad Council will launch first national campaign on digital literacy § Ad Council campaign will begin in January 2013, will run for three years, and will focus on promoting digital literacy training and broadband adoption for all Americans in English and Spanish. § The campaign will also promote the existence of free digital literacy training classes in thousands of communities nationwide. V. The Broadband Adoption Challenge § One-third of all Americans – 100 million people – haven’t adopted broadband at home. Broadband adoption is key to America’s competitiveness – to jobs, e-government, education, and energy. Compare that to South Korea and Singapore where adoption rates top 90 percent. (FCC research study, 2010) § There is a growing divide between the digital-haves and have-nots. o Less than one-third of the poorest Americans have adopted broadband, while more than 90% of the richest have adopted. (Connected Nation Survey, 2011 Digital Nation, NTIA). o Less than 50% of African Americans, Latinos, elderly and rural populations have adopted broadband. (Connected Nation Survey, 2011 Digital Nation, NTIA). o About 46% of low-income families have adopted broadband at home compared with over 90% of higher-income families. (Connected Nation Survey, 2011 Digital Nation, NTIA) § A Federal Reserve study found that students with a PC and broadband at home have six to eight percentage point higher graduation rates than similar students who don’t have home access to the Internet. (Federal Reserve Bank, 2008) § Studies have shown that broadband adoption efforts have resulted in increased test scores and that students actively and regularly used their computers and the Internet for learning. (CFY) § 50% of today’s jobs require technology skills, and this percentage is expected to grow to 77% in the next decade. (IDC Research) § Closing the broadband adoption gap will create $32 billion in annual economic value, or about $100 for every American, every year. (Microsoft) § Consumers with broadband at home can save more than $7,000 a year. (Internet Innovation Alliance) VI. Barriers to Broadband Adoption § Digital Literacy: 22% of non-adopters say they feel uncomfortable or fearful using technology. § Cost: 26% of non-adopters say they can’t afford broadband or a computer. § Relevancy: 19% of non-adopters fail to recognize the potential benefits broadband would bring to their lives. § Marketing: Most non-adopters are not receptive to traditional channels of marketing. VII. Horace Mann Middle School and the San Diego Unified School District are FCC Learning On- the-Go Recipients § The FCC launched the Learning On-the-Go program to explore how E-rate can help schools and libraries offer off-premises wireless Internet access for digital learning and digital textbooks. § The San Diego Unified School District was one of 20 recipients of funding under the pilot program. § The district established a Mobile Learning Program to seamlessly integrate ubiquitous, one-to-one computing and other 21st century technology into all teaching and learning throughout the curriculum. § Program serves 6th graders in eight middle schools and all grades in two middle schools.