Your SlideShare is downloading. ×
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Connecting All Americans
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Connecting All Americans


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Connecting All Americans Link Hoewing VP, Internet and Technology Policy July 15, 2007
  • 2. Broadband Penetration Rankings – By Household EU25: 39% Internet, 23% Broadband US50: 70% Internet, 42% Broadband Source: Pew Internet & American Life Project, “Home Broadband Adoption 2006”, May 28, 2006 Source: European Commission, “E-Communications Household Survey”, July 2006 State Data Source: Render Vanderslice & Associates, September 2006
    • Key Takeaways:
    • US Internet & Broadband Adoption Significantly Higher than EU Overall
      • Internet US 70% vs. EU 39%
      • Broadband US 42% vs. EU 23%
    • On a state-by-state basis:
      • The most penetrated US states compare favorably with the most penetrated EU countries (US States would be 8 of the top 10)
      • The least penetrated US states are above the EU average (23%).
    Bottom 3 US States Top 3 US States Page
  • 3. Platform Competition – Lacking in Europe The majority of European markets have a small non-DSL infrastructure, and cable penetration – particularly – for most of Europe is at less than 21%. Unbundling of DSL throughout the EU is, in large part, to compensate for a lack of platform competition. European Competitive Telecom Association (ECTA), ‘Scorecard’ 1st quarter 2006. 491,100  5,934,604 40,757,959 Europe Total / Average   8,500 2,870,354 8,173,113 UK   63,000 1,550,000 2,727,121 Netherlands   343,000 0 7,038,612 Italy   76,600 284,250 11,305,352 Germany   0 600,000 10,219,301 France   0 630,000 1,351,482 Belgium Total Other BB infrast. (FttH, Sat., WLL, other) Cable Internet broadband connections (total) Total country DSL lines Country 
  • 4. Record Year for BB Growth
    • 20 largest cable and telco providers in the U.S. combined added over 10.2 million new BB subscribers in 2006
    • For 2006, Verizon added 1.8 million new BB subscribers
    • These providers now serve over 53.3 million BB subscribers, with cable controlling ~55%
    Source: Leichtman Research Group
  • 5. Broadband penetration in the U.S., 2000-2007
  • 6. Today’s U.S. Broadband Market is Highly Competitive Most households can get broadband: 82% DSL 94% Cable 50,000 WiFi Hotspots exist nationwide Broadband over powerline now competing in dozens of locations The percent of households subscribing to broadband has exploded: More than 50% of all homes have broadband Carriers are offering lower entry prices for their broadband services: Verizon offers $14.95 DSL Carriers are improving the high-speed options available to customers: Verizon FiOS 50 Mbps Cablevision 16 Mbps Mobile carriers have introduced new services and networks: EVDO (700 kbps average speed) available to 255 million Americans
  • 7. Customer Time Spent in Selected Forms of Electronic Communication Consumers daily total use is 5.25 hours! Multitasking plays a role. No one form dominates. Sources: (1) “Multitasking Drives Consumer Consumption of Media”, Yankee Group, Jan 26, 2007, Exhibit 1 "Average Media Consumption (Hours per workday) in the United States… " (excerpts) (2) Households in US, 2005 - (shows 113M HH in 2006) (3) “The VoIP Evolution Continues: Forecasting Broadband VoIP and Cable Telephony”, Yankee Group, Aug 2006, Exhibit 3 shows 8.5M VoIP HHs (4) “Worldwide Email Usage 2005-2009 Forecast”, IDC, Dec 2005, Table 15 North American and Worldwide Average Daily Person to Person Email Messages Sent – shows 11.97 person to person emails sent. (5) “Daily Internet Activities”, shows 93M Adults use the Internet on any given day.
  • 8. Verizon’s Broadband Strategy Includes . . .
    • Fiber-to-the-premises (FTTP)
      • Next generation network technology
      • 9 million homes passed by end of 2007
      • 5/2 Mbps; 15/2 Mbps; 30/5 Mbps; 50/5 Mbps (in some markets) – Advancing now to GPON and potentially 100s of megabytes to homes
    • DSL
      • Continue to deploy as ubiquitous data network
      • Speeds of 768 kbps and 3 megabytes available
      • Deployed to over 80 percent of all our customers
    • Wireless
      • 3G deployed today
      • 255 million Americans (5/6s) can access today
      • Up to 700 kbps on average available
      • EVDO Rev A now being deployed in dozens of cities with upload speeds in particular several times higher than current EVDO
      • Moving toward 4G - other wireless technologies (WiMax) in trials
  • 9. Verizon FiOS Strategy
    • FiOS – began in 2005 – an all-digital fibre-optic network that extends to the customers’ premises (FTTH / FTTP)
      • FiOS TV – now offered in 400 cities to over 3.5 million customers
      • “ Triple play” – also supports voice and high-speed Internet at up to 100/10 Mbps in more than 1,600 cities in 16 states
      • More capacity for digital & HDTV, and unparalleled IP bandwidth for on-demand & niche programming
      • Unprecedented interactivity to support new business opportunities in voice, data, video, conferencing, etc.
    FTTH/FTTP Update – April 1, 2007
    • 2Q’07 Deployment Status:
    • Over 7 M premises passed
    • 1 M FiOS high speed customers
    • 350,000 plus FiOS TV customers
    • Nearly 1 million TV customers in total (satellite/FiOS)
    • 2007 Deployment Objectives:
    • Pass 9M premises passed
    • 2010 Deployment Objectives
    • Pass 18M premises by 2010
    What is Verizon Doing? Page Verizon CapEx spending on FiOS will total of $23 billion by 2010
  • 10. Percent of Residents with No Choice in Internet Service Source: Pew Internet and Society Project
  • 11. Connect Kentucky – the Model
    • Private-public partnership managed by a non-profit organization
      • Trust, reliance on private sector wherever possible
    • Focus on BOTH supply and demand – build it and they will come not enough
    • Must find out where the “holes” are where broadband is not – mapping
      • Work with companies to get data – strong non-disclosure agreement and non-profit not subject to FOIA
      • Develop effective GIS mapping system
    • Continuously report progress to political leaders
    • Create eCommunity leadership teams
      • Teams consist of local members from nine different groups (listed in next slide)
      • Conduct economic and business analysis
    • Promote deployment – focused on private players first
      • Aggregated demand and market analysis developed through eCommunity work
      • Private players may decline and if so, other options – including RUS loans working with local governments – are used
  • 12. Connect Kentucky - Mapping
  • 13. The Connect Kentucky Model Works Kentucky went from among the bottom states on deployment to one of the top five Kentucky will be at 100% deployment by year’s end Kentucky has reached 42% penetration of broadband
  • 14. Connect Kentucky Model Produces Results
    • U. S. model – platform competition, remove constraints on investment – has worked and is working
    • Mapping is important but it alone does not produce results
      • In fact it can be harmful if not linked to effective programs focused on encouraging deployment and use
    • Non-profit led, private-public partnership is results focused
      • Community based with objective to “fill the holes”
    • Data comes in many formats – gathering it and effectively teasing out key conclusions is not easy
      • GIS systems are almost rocket science
    • Focusing on the demand/uptake side of the equation is critical too
    • Connect Kentucky results speak for themselves