Access from AT&T, CAFII and Small Cells

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1 September 15, 2016 Access from AT&T, CAFII and Small Cells W. Karl Wardin Assistant Vice President, AT&T National Regulatory Organization - Retail 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (Internal Use Only). Not for use or disclosure outside the AT&T companies except under written agreement.

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3 FCC Obligations Fiber to the Premises (FTTP) Deployment Non-Discriminatory Usage-Based and Other Practices for Fixed Broadband Respond to 1 Gigabit Service Requests from E-Rate Eligible Schools and Libraries Internet Interconnection Agreement Disclosure Requirements Compliance Program and Reporting Discounted Broadband Services Program (Access from AT&T) AT&T must clearly and conspicuously market the program Comprehensive Outreach Program Att.com/access Dedicated Call Center English/Spanish-speaking service reps Additional 100 languages translation provided by Language Line

4 Marketing Program Overview Target Market Target outreach efforts to low-income individuals and families, including veterans, elderly, and non-english speaking customers Outreach Program Requirements Promote Program, including PSAs with annual value of at least $15M Distribute information to at least 20 organizations that work with low-income communities nationally and locally Coordinate with state education departments Provide promotional and collateral materials to public school districts within AT&T s wireline footprint Educate school professionals about the program

5 New Low-Cost Offer AT&T is now offering wireline Internet access service at a new low price to households participating in the SNAP program. Location The offer is available in the 21 states in which AT&T provides wireline Internet access where it is technically available. Price & Speeds AT&T offers the following speed tiers/prices: 10 Mbps download speeds, where technically available, for $10 per month; If 10Mbps is not available, then 5Mbps download speeds for $10 per month; If 5Mbps is not available, then 3Mbps download speeds (where technically available) for $5 per month Qualifying households are not required to pay installation or modem charges/fees to participate in the low-cost services program.

6 Qualifying Households Households where at least one individual participates in the U.S. Supplemental Nutrition Assistance Program (SNAP) qualify for this program. Whether a participating household qualifies for the offer may be reviewed on a yearly basis. Unpaid debt to AT&T for certain Internet access services may affect eligibility. Duration This is a 4-year program which began April Those who sign-up for service in year 4 are eligible to receive discounted rates for 12 months.

7 AT&T Indiana Partnering with Local Organizations Partner Organizations: Indianapolis Housing Authority Posting Access from AT&T information in all offices Community Action of Greater Indianapolis Posting Access from AT&T information in all offices Indianapolis Public School Foundation AT&T served as title sponsor for the Annual Convocation event, with more than 5,000 administrators/faculty/staff in attendance AT&T made Access from AT&T presentation 100 Black Men Posting Access from AT&T information in all offices Indiana Black Expo AT&T present at their Summer Celebration (July) with an exhibit booth and distributed more than 500 flyers to community leaders, churches and SNAP participants.

8 EveryoneOn EveryoneOn is a partner of the Access from AT&T program and is assisting with outreach to school districts and community organizations. The goal of this outreach is to educate school professionals about the Access from AT&T program, in order to reach those who are most likely to work closely with students and families. They will also hold community events to promote the offer in collaboration with community-based organizations. The organization is a national nonprofit working to eliminate the digital divide by making high-speed, low-cost internet service and computers, and free digital literacy courses accessible to all unconnected Americans. To learn more about EveryoneOn, visit

9 Connected Nation Connected Nation is a partner of the Access from AT&T program. Nonprofit Connected Nation has been working with states and communities across the country to close the digital divide for more than 13 years. Connected Nation is coordinating with our partner organizations to provide collateral and collect feedback on offer promotional activity. Our work with Connected Nation is all part of our effort to learn how we can be more effective in spreading the word about AT&T s offer to SNAP participants.

10 Digital Literacy digitalyou.att.com/access/ Digital You, created in collaboration with Common Sense Media, educates people on best practices for using technology so all can safely and confidently access the world at their fingertips. We re designing a refreshed website with resources focused on: Getting online and basic computer skills How to maintain privacy, safety and security Managing your online presence The website will also include information on the Access from AT&T program. Expert support for Digital You includes:

11 Connect America Fund II

12 Executive Overview In August 2015, AT&T accepted about $427M in annual Connect America Fund II support for each of the next 6 years. These funds will be used for deploying, maintaining and offering Internet access and voice service in FCC-identified census blocks in 18 states in AT&T s traditional exchange areas. AT&T FWI will be deliver to 1.1 million homes and businesses in these largely rural FCC-identified census blocks. In Indiana, AT&T will use the CAF II support to offer high-speed Internet access to more than 45,000 homes and small businesses in the FCC-specified census blocks. AT&T FWI service is anticipated to support speeds in excess of 10 Mbps download and 1 Mbps upload. AT&T s Fixed Wireless Internet is a service that uses a fixed-wireless last mile connection between the fiber at a cell tower and the customer premises to provide high-speed Internet access.

13 Benefits to Rural Communities in Indiana Price Protection rural prices for CAF II supported high-speed Internet must be comparable to urban areas. Bundled Offers FWI High-Speed Internet may be bundled with AT&T Mobility or AT&T Direct TV service for additional value savings. Direct TV and FWI installations can be coordinated for customer convenience. Robust Support FWI service monitored 24/7 by AT&T Technical Operations Center and supported by AT&T Mobility network and customer support organizations, with national depth of expertise, staffing and resources. Professional Installation FWI is installed by AT&T s Direct TV organization of highly rated professional installers, providing a premium customer experience. Construction Performance FCC CAF II program has construction performance requirements with significant, selfexecuting financial penalties for construction delays. Service launch in early 17 and 40% completed by year-end. Private Capital Risk AT&T absorbs 100% of the risk of cost overruns, as well as revenue shortfalls. No tax risk. State-Specific Commitment AT&T s IN construction commitment cannot be offset by other states. Mobility Coverage Expansion concurrent with FWI build, AT&T Mobility Coverage will be expanded in some areas.

14 Planned FWI Site Locations will be Broadly Distributed Across AT&T s Rural Territory throughout Indiana Legend AT&T Traditional Service Territory CAFII Supported Area Extremely High Cost Area

15 AT&T Fixed Wireless Internet Overview AT&T Wireless Network Residential or Small Business Location Fiber Backhaul from hundreds of rural towers to the AT&T Network and the Internet Internet AT&T Fiber AT&T cell site Square Outdoor Antenna Residential Gateway -- Wi-Fi Router Core Network Radio Access Network Wireless/Spectrum Customer Premise Note: Illustrative only and not to scale. While the expectation is most locations will be served via FWI, AT&T may serve required locations via other technologies

16 Cell Site Shelter Electronics FWI Enabled Cell Tower Antenna at Customer Premise FWI Enabled Cell Site Grounding and Power Residential Wi-Fi Gateway

17 Customer Premise Equipment Overview Outdoor Antenna at Customer Premise Note: Illustrative and equipment pictures not to scale.

18 Statewide, Industrywide Overview of CAF II Support First, FCC CAF II Supported High-cost areas for Larger Price Cap Carriers, e.g. AT&T, CenturyLink, Frontier and Windstream. Next, FCC Expanded Support for Smaller Rate-of-Return Carriers, e.g. TDS. Currently, FCC developing a CAF II reverse auction process to distribute support in areas (1) where a price cap carrier declined the CAF II state-level commitment; (2) that are extremely highcost; and (3) that receive 4 Mbps down/1 Mbps up but not 10 Mbps down/1 Mbps up. Price Cap Carriers

19 AT&T and Small Cells

20 Different types of cell sites Macro Cells Small Cells Distributed Antenna System Wi-Fi Hot Zones The more traditional cells that you see atop free standing towers, buildings, water tanks Flexible network solutions like mini-macro cell site that can be readily deployed to specific locations Alternative solution that provides coverage over specific, high-use target areas. Deliver high speed internet access, mainly for outdoor coverage. Coverage radius measured in miles cover the most people over a large area Provide enhanced voice and data services by helping bolster network capacity in more specific places Typically used for high-use areas like arenas, stadiums, convention centers 2

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22 Small cells are helping us keep up with rising consumer and business demand and prepare our network for the future.

23 Examples of small cells deployed in our communities

24 Small cells and future technologies Small cells are used to densify AT&T s network and to bring the network closer to its users. This allows us to provide a better LTE experience today while also allowing us to prepare for the technologies of the future such as 5G, smart cities and new developments in the Internet of Things (IoT).

25 Small cells help to bring the network closer to its users to deliver increased data capacity, faster connectivity speeds and an overall better wireless experience. Macro Cell Small Cell placed on side of building User

26 Smart public policy can facilitate deployment and more quickly bring the benefits of small cells to your community. Local officials and leaders can facilitate the deployment of small cells to bring their citizens enhanced coverage and capacity, while helping us prepare our network to accommodate future technologies in their city by: Establishing streamlined permitting processes Establishing universal Master Leasing Agreements (MLAs) for small cell deployment Ensuring pole attachment rates and fees are reasonable

AT&T and Small Cells. Enhancing our network to meet consumer demand today while preparing for the technologies and innovations of tomorrow.

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