Michael Render

ib h ilFiber-to-the-Home Council

North AmericaNorth America

North American FTTH/FTTP Status

Presented by:Michael C. RenderMichael C. Render

NA FTTH Continues To GrowNA FTTH Continues To Grow

2

FTTH Homes PassedFTTH Homes PassedCumulative – North America

RVA 2010

RVALLC 2007

RVALLC 2010

FTTH Homes ConnectedFTTH Homes ConnectedCumulative – North America

RVA 2010

RVALLC 2007

RVALLC 2010

FTTH PenetrationFTTH PenetrationCumulative – United States

RVALLC 2007RVALLC 2010

FTTH P t ti B St tFTTH Penetration By State

10%+

RVA 2010

0%

RVALLC 2010

What Is The Consumer Impact?What Is The Consumer Impact?

7

Methodology

1. Filtering survey among 100,000 online panel

2 Online survey of over 600 U S FTTH consumers2. Online survey of over 600 U.S. FTTH consumers

3. Survey of over 600 U.S. non-FTTH broadband users

RVA 2010RVALLC 2010

FTTH Is Perceived To Be BetterFTTH Is Perceived To Be Better

9

General Public Awareness Of FTTH

RVA 2010

10

RVALLC 2010

General Public Interest In TakinggFTTH (After Concept Explained)

10 Mbps symmetrical $40

20 Mb t i l $6020 Mbps symmetrical $60

100 Mbps symmetrical $145100 Mbps symmetrical $145

Would keep existing serviceWould keep existing service

RVA 2010

11

RVALLC 2010

Importance Of Development Amenities If

Non FTTH Users:

I f di fib i li

p pShopping For New Home

Internet from a direct fiber optic line

Green space / walking, jogging

24 hour neighborhood patrol

Community pool / park

Fitness center / Club house

Current FTTH Users:

Internet from a direct fiber optic lineInternet from a direct fiber optic line

Green space / walking, jogging

24 hour neighborhood patrol

Community pool / park

Fitness center / Club house

RVA 2010

12

RVALLC 2010

Consumer Tested Bandwidth UseConsumer Tested Bandwidth Use

13

FTTH Tested Average Bandwidth TrendsFTTH Tested Average Bandwidth Trends(March of each year)

Median download is 10 4 and upload is 2 4 RVALLC 2010Median download is 10.4 and upload is 2.4

Additional Bandwidth Used For IPTV/All Sets OnAdditional Bandwidth Used For IPTV/All Sets On(Assuming high compression)

9.92007 (1.2 devices)

13.52008 (1.7 devices)

15.42009 (1.9 devices)

0 5 10 15 20

RVA 2010

15

RVALLC 2010

FTTH Average Peak Bandwidth Load

40Download Mbps

FTTH Average Peak Bandwidth LoadIncluding Internet Download And IPTV HD Devices

27.6

30

35p

HD Devices MbpsTotal Mbps

15 1

20.5

27.6

15

20

25

9.9

15.1

12.2

7.05 2

15.413.5

5

10

15

5.2

0

5

2007

2008

2009

RVALLC 20102 2 2 RVALLC 2010

Is FTTH PerformanceActually Better?

17

Download Performance Of Broadband (Median)

FTTH

Cable Modem

DSL

RVA 2010

18

RVALLC 2010

Upload Performance Of Broadband (Median)

FTTH

Cable Modem

DSL

RVALLC 2010

19

RVALLC 2010

Median Download/Upload Performance/ pOf Broadband

FTTH

Cable Modem

DSL

RVALLC 2010

20

RVALLC 2010

FTTH Satisfaction

Consistency of speed

FTTH SatisfactionPercent Very Satisfied

Broadband speed

Provider’s customer service

Internet overall

Reliability – service uptime

I t ll tiInstallation process

RVA 2010

21

RVALLC 2010

FTTH Satisfaction

Quality of HD picture

FTTH SatisfactionPercent Very Satisfied

Standard television overall

Number of HD channels

Number of standard channels

Video on demand

High definition television overallHigh definition television overall

RVA 2010

22

RVALLC 2010

Position Of FTTH If Economic Conditions Forced Expenditure Reductions

49%Cancel FTTH last

41%Consider cancelling

11%Cancel FTTH first

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

RVA 2010

23

RVALLC 2010

Does FTTH Benefit Society?Does FTTH Benefit Society?

24

2009 Research Shows FTTH Users2009 Research Shows FTTH Users Work Nearly Two Additional

Days Per Month At Home Due To FTTHy

Days worked from home increased:

- Nearly 17% work more from home directly because of FTTH – an average of 12 days more

- FTTH directly lowers energy use, CO2 emissions, road maintenance, accidents, unproductive hours…

RVA 2010RVALLC 2010

50

Telework To Broadband Speed Correlation

FTTH40

45

king

Cable35

ver

Tele

wor

k

DSL25

30

% E

v

20

0 1 2 3 4 5 6 7

Download/Upload Mbps RVA 2010Download/Upload Mbps RVALLC 2010

Reasons FTTH Assists Telework

85%Speed/Bandwidth

R li bilit f ti 25%

6%

Reliability of connection

Having VPN 6%

1%

Having VPN

Allows video conference 1%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Allows video conference

RVA 2010

27

RVALLC 2010

26%Convenience/stay at home

Personal Benefits Of Telework

20%

19%

Convenience/stay at home

Economical

No commute (Traffic/weather) 19%

13%

No commute (Traffic/weather)

Flexibility

10%

6%

Productivity

Comfortable clothing

6%

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

Security

RVA 2010

28

RVALLC 2010

Impact Of FTTH OnImpact Of FTTH OnConventional Work Hours

25.0%

72.0%

More flexibility

No/Doesn't apply

RVA 2010

29

RVALLC 2010

Home Based Business In FTTH Households

17%Home business present

13%Home bus/Improved by FTTH

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

RVA 2010

30

RVALLC 2010

Home Based Business /

18

Home Based Business / Broadband Speed Correlation

17

17.5

sine

ss

FTTH

Cable16.5

me

Base

d Bu

DSL15.5

16

% H

om

15

0 1 2 3 4 5 6 7RVA 2010Download/Upload Mbps RVALLC 2010

FTTH Price Versus Price For Previous Service

$136Price from FTTH provider

$145Previous price/ similar services

$0 $20 $40 $60 $80 $100 $120 $140 $160

RVA 2010

32

RVALLC 2010

Awareness Of Lower Price Offers FromAwareness Of Lower Price Offers FromOther Providers After FTTH Introduced

30%

70%

Yes

No/Don't know

RVA 2010

33

RVALLC 2010

ib h ilFiber-to-the-Home Council

North AmericaNorth America

North American FTTH/FTTP Status

Presented by:Michael C. RenderMichael C. Render