TriStates Telecommunications Conference

Broadband in Rural Utah

AUGUST 13, 2014

Vincent E. Mikolay Managing Director of Business Outreach and International Trade Utah Governor’s Office of Economic Development

Utah will lead the nation as the best performing economy and be

recognized as a premier global business destination.

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Strengthen and Grow Existing Utah Businesses, Both Urban and Rural Increase Innovation, Entrepreneurship & Investment Increase National and International Business Prioritize Education to Develop the Workforce of the Future

Governor’s Vision for the State

Created 100,000 Jobs in 1,000 days

Rank State Rate 1 NORTH DAKOTA 2.7

2 UTAH 3.5 2 NEBRASKA 3.5

2 VERMONT 3.5

5 SOUTH DAKOTA 3.8

6 WYOMING 4.0

7 HAWAII 4.4

7 IOWA 4.4

7 NEW HAMPSHIRE 4.4

10 MINNESOTA 4.5

Utah is tied for the 2nd lowest unemployment rate

…and the 4th most diverse economy

Accolades

#1 state for Small Business Thumbtack/Kauffman

A top state for business Pollina (#1 three years running), Forbes, CNBC

#1 Business Climate Business Facilities

#1 Economic Outlook for the 5 years running ALEC

Our Utah Toolbox

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Source: Utah DWS, GEOD Analysis of Utah DWS data

Aerospace & Defense 16%

Energy 10%

Life Sciences 15%

Financial Services 26%

Software / IT 29%

Outdoor Recreation 4%

47,320

26,499

18,611 28,876

6,208

51,451 Utah’s six strategic industry clusters

Total Clusters Jobs:

178,965

Utah Clusters

IT/Software Cluster Scorecard – Q1 2013

.

3,429 3,527 3,679

3,805 4,111

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012

Establishment Count

UT IT

5.1% 5.8%

6.5%

1.2%

2.8% 3.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2010 2011 2012

Jobs Growth Rates

UT IT UT

$69,685 $66,771

$76,052

$38,829 $39,662 $39,264

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2010 2011 2012

Average Wage

UT IT UT Total

Top 5 States by Concentration

Rank State LQ

1st Idaho 2.6

2nd Vermont 1.9

3rd Washington 1.8

4th New Hampshire 1.7

5th Virginia 1.7

9th Utah 1.4

Source: Utah DWS, BLS, Census Bureau

Key Stats

Jobs • Utah IT Jobs: 51,451 • 4.0% of Utah Total Jobs

Wages • IT Avg. Wage: $76,052 • 193% of Utah Avg. Wage

Locations / Businesses • Establishments: 4,111

California , 15.1%

Texas, 8.2%

New York, 5.7%

Virginia, 4.8%

Florida , 4.4%

Washington, 3.9%

Massachusetts , 3.8%

Illinois , 3.5%

Georgia, 3.1% Pennsylvania,

3.0%

Utah, 1.4% Rank: 24th

All Other States, 43.1%

Market Share

COMPANY JOBS 1 EBAY 1,798 2 IM FLASH 1,627 3 ACS COMMERCIAL SOLUTIONS 1,049 4 CLEAR LINK 1,042 5 ADOBE SYSTEMS 885 6 OVERSTOCK.COM 878 7 ACS BUSINESS PROCESS SOLUTIONS 754 8 UNITED HEALTHCARE 660 9 QWEST 641 10 BLUEHOST 622 11 MYFAMILY.COM 615 12 NOVELL 583 13 EMC CORPORATION 499 14 FAIRCHILD SEMICONDUCTOR 448 15 XACTWARE 445

Utah Top Tech Companies

UofU Data Center Certification

• College of Engineering received approval for its

new undergraduate certificate program in data

center engineering.

• Designed to prepare students to work for

companies & government organizations

supporting data centers in Utah such as eBay,

Oracle and Goldman Sachs.

INFINIDAT Trade Mission

INFINIDAT, a

company in the

petabyte-scale data

storage business

Founder: Moshe

Yanai, leading

international figure

in big data

technology

EDTIF Performance Incentives Awarded & Contracted Jobs

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1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Jobs

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

IncentivesOffered

New StateRevenues

CapitalInvestment

New StateWages

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

Am

ou

nts

In T

ho

usa

nd

s

Recent jobs incentives

9,000 miles

Rural Team Update

In just 38 days:

• Met with ALL Counties to discuss priorities

• Business Expansion and

Retention Program (BEAR Program) (U.C.A. 63M-1-904)

Strong Infrastructure

• Broadband – Strategic location for

national connectivity

– Backbone to five major metropolitan areas

• Transportation – Highway

– Light rail

– International Airport

Many rural Utah communities have speeds as fast as their urban counterparts

Funding Sources

• Project team: identifies communities, providers, or other stakeholders that are eligible and encourages them to submit applications.

• Rural Broadband Experiments, which will also provide infrastructure funding in rural communities.

• United States Department of Agriculture’s (USDA) Community Connect Fund

Accomplishments

• Completed Two Mobile Broadband Drive Tests

• Enlisted a contractor to drive 6,000 miles of federal, state, and county roads to verify mobile broadband coverage

• Compared drive test data to provider-submitted data to ensure accuracy

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DECEMBER 19, 2013

Vincent E. Mikolay Managing Director of

Business Outreach & International Trade

Governor’s Office of Economic Development

60 E. South Temple, 3rd Floor,

Salt Lake City, Utah 84111

801-538-8680