Communication Technology In Next Generation Developments

Communication

Technology

In Next Generation

Developments

Michael Render

November, 2013

Communication Technology In Next Generation Developments

350 Provider/ Vendor/ Expert Interviews: RVA LLC March to September, 2013

2,100 Consumer Interviews: RVA LLC June, 2013

Research Sources

Conducted in part for the FTTH Council

Communication Technology In Next Generation Developments

Advanced Broadband Enhances Value

Communication Technology In Next Generation Developments

66%

52%

34%

33%

28%

50%

38%

27%

25%

21%

0% 20% 40% 60% 80% 100%

ALL AGES:

Green space, parks, and trails

Shops and restaurants/ walking distance

Diverse mix of housing types and prices

Extremely high speed fiber broadband

Public/ Mass transit in walking distance

AGE UNDER 45:

Green space, parks, and trails

Shops and restaurants/ walking distance

Extremely high speed fiber broadband

Diverse mix of housing types and prices

Public/ Mass transit in walking distance

Advanced Broadband Is Important In A Community Two -Three Elements Most Important To New Community

Communication Technology In Next Generation Developments

83%

78%

61%

55%

53%

81%

79%

58%

56%

55%

0% 20% 40% 60% 80% 100%

ALL AGES: Green space/ walking, jogging

Internet from a direct fiber optic line24 hour neighborhood patrol

Fitness center/ Club house Community pool/ park

AGE UNDER 45: Green space/ walking, jogging

Internet from a direct fiber optic line Community pool/ park

24 hour neighborhood patrolFitness center/ Club house

Advanced Broadband Is Important In A Neighborhood Percent Saying Somewhat Or Very Important

Communication Technology In Next Generation Developments

External Wireless Alone Is Insufficient

Communication Technology In Next Generation Developments

Many Mistakenly Think “Wireless” Is Really Wireless

Chicago Austin

Communication Technology In Next Generation Developments

Wireless Is Actually An Important App On Fiber!

Network in the ground (usually fiber)

A very small percent of most wireless communications are over air because wireless energy disperses rapidly.

Wireless Wireless

Communication Technology In Next Generation Developments

Small External Fiber Fed Antennas Are Needed

Communication Technology In Next Generation Developments

Lifestyles Are Changing

Communication Technology In Next Generation Developments

The Majority Of Adults Are Now Internet Dependent

Communication Technology In Next Generation Developments

2.7

2.6

1.6

0.6

0 1 2 3 4 5 6

Traditional TV (Cable, Air,DVD)

Online:

Communication/ Personal

Work

Online TV

In-Home Broadband Time Is Increasing Online Hrs. For Average Person Spending 9 Waking Hours At Home

Estimated “screen time” is 7.5 hours - 83% of waking hours at home. (Note: some time could be screen-to-screen multitasking and screen-to-non screen multitasking.)

4.8 online hours

Communication Technology In Next Generation Developments

The Number Of In-Home Internet Devices Is Growing

Consumers believe their home now supports approximately five Internet-ready devices….

… and an estimated 2.8 HD televisions/ DVRs (many fed by IP).

Communication Technology In Next Generation Developments

68%

25%

10%

5%

13%

7%

81%

36%

24%

23%

20%

19%

0% 20% 40% 60% 80% 100%

Shop online

Upload large files

Use VOIP for audio

Download/ stream video to television set

Upload video content to Internet

Use two-way video conferencing

2010

2013

14

The Use Of Apps Already Available Is Increasing Rapidly Internet Activities Completed At Least Once/Month By FTTH Users

Communication Technology In Next Generation Developments

4.9%

2.9%

13.5%

19.0%

59.7%

12.2%

7.8%

26.6%

20.1%

33.2%

0% 20% 40% 60% 80% 100%

ALL AGES:

OTT only ("Video cord cutter")

OTT heavy (66%-99.9%)

OTT medium (33%-65.9%)

OTT light (1%-32.9%)

Traditional TV only

AGE UNDER 35:

OTT only ("Video cord cutter")

OTT heavy (66%-99.9%)

OTT medium (33%-65.9%)

OTT light (1%-32.9%)

Traditional TV only

15

OTT Video Has Only Started To Drive More Wireline Traffic

Communication Technology In Next Generation Developments

Home Mobile Devices Are Being Handed Off To Wireline

A total of 67% of mobile users say they already at least sometimes connect their devices to in-home WiFi to increase speed or avoid cellular charges.

Communication Technology In Next Generation Developments

Multi Screen Use Is Increasing Tablet Devices Are Often Used While Watching TV

A total of 34% percent of random fixed broadband users own both a Smartphone and a Tablet. This heavy mobile device user group estimates they use a second device about 47% of the time while watching TV.

Communication Technology In Next Generation Developments

• Employed FTTH users say they work 1.3 extra days per month from home (on average).

• 14% of FTTH users have a home-based business with over $10,000 in estimated incremental income from having advanced broadband.

Advanced Broadband Is Changing How We Work

Communication Technology In Next Generation Developments

Emerging Applications Will Require Extreme Bandwidth

Special Interest now: Seniors, Young Mothers

Special Interest now: Women Special Interest now: Young Males

Special Interest now: Young Men & Women

Communication Technology In Next Generation Developments

Our Homes Will Have HD Perimeter Monitoring Saved To The Cloud

Communication Technology In Next Generation Developments

We Will Even Travel From Our Home

In our lifetimes…. We may be getting a full diagnostic in-home checkup from a clinic in Germany. We may be playing tag with our grandchildren across the country by “inhabiting” an “Avatar”-like robot.

Communication Technology In Next Generation Developments

Broadband Is Not A Commodity

Communication Technology In Next Generation Developments

FTTH Has The Highest Tested Download Speeds Median Tested Download Speeds

Communication Technology In Next Generation Developments

FTTH Is “Pulling Away” With Tested Upload Speeds Median Tested Upload Speeds

0

2

4

6

8

10

12

14

16

2007 2008 2009 2010 2011 2012 2013

Mb

ps

FTTH

Cable Modem

FTTN

DSL

Wireless

Communication Technology In Next Generation Developments

For The Home, Gigabit Internet Is Coming!

Communication Technology In Next Generation Developments

Advanced Broadband Is Appreciated

Communication Technology In Next Generation Developments

51%

53%

53%

42%

31%

32%

36%

23%

26%

27%

31%

20%

27%

26%

35%

19%

0% 20% 40% 60% 80% 100%

Broadband speed (upload)

Broadband speed (download)

Consistency of speed

Streaming quality

FTTH

Cable

DSL

Wireless

27

Users Are More Satisfied With The FTTH Experience Percent “Very Satisfied” With Aspects Of Data

Communication Technology In Next Generation Developments

56%

48%

25%

6%

3%

3%

5%

-20% 0% 20% 40% 60%

Fast / Speed/ Capacity

Better Video / TV

Reliable / Cust Service

Better Price

Positive general

Packaged/ Bundled

Other

28

Customers Describe Diverse FTTH Advantages Categorization Of Open-End Responses

Communication Technology In Next Generation Developments

Higher Capacity Broadband Is Winning

Communication Technology In Next Generation Developments

Advanced Broadband Enhances Value

Communication Technology In Next Generation Developments

$5,337

$6,451

$0 $2,000 $4,000 $6,000 $8,000 $10,000

Perceived IncreasedValue: No Prior FTTH

ownership

Perceived IncreasedValue: Prior FTTH

Ownership

31

FTTH Increases Home Value Perceived Increase When Considering $300,000 Home With FTTH

Communication Technology In Next Generation Developments

Advanced Broadband Has Excellent ROI

Communication Technology In Next Generation Developments

28% 33% 34%

52%

66%

0%

20%

40%

60%

80%

100%

Amenity Cost Per Home Versus Top Two Importance Cost Estimates – Extremely Rough, Directional Only!

Among top two most important factors for community (all ages)

Green Town Diverse Technology / Mass Transit

Space Center Housing Broadband Link

Cost of planning $300,000 $400,000 $300,000 $75,000 $1,500,000

Costs not directly recoverable $5,000,000 $15,000,000 $0 $0 $125,000,000

Total cost $5,300,000 $15,400,000 $300,000 $75,000 $126,500,000

Homes 10,000 10,000 10,000 10,000 10,000

Cost per home $500.00 $1,500.00 $30.00 $7.50 $12,500.00

Communication Technology In Next Generation Developments

Developers Have Room To Improve

Communication Technology In Next Generation Developments

45%

35%

10%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

DSL/ Cable modem only

FTTH available throughout

FTTH available in parts

"Stealth FTTH" Available *

FTTH In RCLCO Top 20 MPCs Based On Survey Of Developments, November 2013

* AT&T FTTH with little current service differentiation from non FTTH Uverse

Communication Technology In Next Generation Developments

Possible Development Technology Planning Needs

• Very high capacity fiber broadband to each home

• Densely distributed small cell antennas

• In home wiring (or “fibering”)

• Applications that have local planning component

(Security, Telemedicine , Energy Management, Local content…)

Communication Technology In Next Generation Developments

Communication

Technology

In Next Generation

Developments

Michael Render

November, 2013