Connecting All Americans  Link Hoewing VP, Internet and Technology Policy July 15, 2007
Broadband Penetration Rankings – By Household EU25: 39% Internet, 23% Broadband US50: 70% Internet, 42% Broadband Source: ...
Platform Competition – Lacking in Europe The majority of European markets have a small non-DSL infrastructure, and cable p...
Record Year for BB Growth <ul><li>20 largest cable and telco providers in the U.S. combined added over 10.2 million new BB...
Broadband penetration in the U.S., 2000-2007
Today’s U.S. Broadband  Market is Highly Competitive Most households can get broadband:    82% DSL 94% Cable 50,000 WiFi H...
Customer Time Spent in Selected  Forms of Electronic Communication Consumers daily total use is 5.25 hours!  Multitasking ...
Verizon’s Broadband Strategy Includes . . . <ul><li>Fiber-to-the-premises (FTTP) </li></ul><ul><ul><li>Next generation net...
Verizon FiOS Strategy <ul><li>FiOS – began in 2005 – an all-digital fibre-optic network that extends to the customers’ pre...
Percent of Residents with No Choice in Internet Service Source: Pew Internet and Society Project
Connect Kentucky – the Model <ul><li>Private-public partnership managed by a non-profit organization </li></ul><ul><ul><li...
Connect Kentucky - Mapping
The Connect Kentucky Model Works Kentucky went from among the bottom states on deployment to one of the top five Kentucky ...
Connect Kentucky Model Produces Results <ul><li>U. S. model – platform competition, remove constraints on investment – has...
Upcoming SlideShare
Loading in …5
×

Connecting All Americans

366 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
366
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Connecting All Americans

  1. 1. Connecting All Americans Link Hoewing VP, Internet and Technology Policy July 15, 2007
  2. 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 <ul><li>Key Takeaways: </li></ul><ul><li>US Internet & Broadband Adoption Significantly Higher than EU Overall </li></ul><ul><ul><li>Internet US 70% vs. EU 39% </li></ul></ul><ul><ul><li>Broadband US 42% vs. EU 23% </li></ul></ul><ul><li>On a state-by-state basis: </li></ul><ul><ul><li>The most penetrated US states compare favorably with the most penetrated EU countries (US States would be 8 of the top 10) </li></ul></ul><ul><ul><li>The least penetrated US states are above the EU average (23%). </li></ul></ul>Bottom 3 US States Top 3 US States Page
  3. 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. 4. Record Year for BB Growth <ul><li>20 largest cable and telco providers in the U.S. combined added over 10.2 million new BB subscribers in 2006 </li></ul><ul><li>For 2006, Verizon added 1.8 million new BB subscribers </li></ul><ul><li>These providers now serve over 53.3 million BB subscribers, with cable controlling ~55% </li></ul>Source: Leichtman Research Group
  5. 5. Broadband penetration in the U.S., 2000-2007
  6. 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. 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 &quot;Average Media Consumption (Hours per workday) in the United States… &quot; (excerpts) (2) Households in US, 2005 - www.census.gov/population/socdemo/hh-fam/hh1.xls (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”, www.pewinternet.org/trends/Daily_Internet_Activities_1.11.07.htm shows 93M Adults use the Internet on any given day.
  8. 8. Verizon’s Broadband Strategy Includes . . . <ul><li>Fiber-to-the-premises (FTTP) </li></ul><ul><ul><li>Next generation network technology </li></ul></ul><ul><ul><li>9 million homes passed by end of 2007 </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><li>DSL </li></ul><ul><ul><li>Continue to deploy as ubiquitous data network </li></ul></ul><ul><ul><li>Speeds of 768 kbps and 3 megabytes available </li></ul></ul><ul><ul><li>Deployed to over 80 percent of all our customers </li></ul></ul><ul><li>Wireless </li></ul><ul><ul><li>3G deployed today </li></ul></ul><ul><ul><li>255 million Americans (5/6s) can access today </li></ul></ul><ul><ul><li>Up to 700 kbps on average available </li></ul></ul><ul><ul><li>EVDO Rev A now being deployed in dozens of cities with upload speeds in particular several times higher than current EVDO </li></ul></ul><ul><ul><li>Moving toward 4G - other wireless technologies (WiMax) in trials </li></ul></ul>
  9. 9. Verizon FiOS Strategy <ul><li>FiOS – began in 2005 – an all-digital fibre-optic network that extends to the customers’ premises (FTTH / FTTP) </li></ul><ul><ul><li>FiOS TV – now offered in 400 cities to over 3.5 million customers </li></ul></ul><ul><ul><li>“ Triple play” – also supports voice and high-speed Internet at up to 100/10 Mbps in more than 1,600 cities in 16 states </li></ul></ul><ul><ul><li>More capacity for digital & HDTV, and unparalleled IP bandwidth for on-demand & niche programming </li></ul></ul><ul><ul><li>Unprecedented interactivity to support new business opportunities in voice, data, video, conferencing, etc. </li></ul></ul>FTTH/FTTP Update – April 1, 2007 <ul><li>2Q’07 Deployment Status: </li></ul><ul><li>Over 7 M premises passed </li></ul><ul><li>1 M FiOS high speed customers </li></ul><ul><li>350,000 plus FiOS TV customers </li></ul><ul><li>Nearly 1 million TV customers in total (satellite/FiOS) </li></ul><ul><li>2007 Deployment Objectives: </li></ul><ul><li>Pass 9M premises passed </li></ul><ul><li>2010 Deployment Objectives </li></ul><ul><li>Pass 18M premises by 2010 </li></ul>What is Verizon Doing? Page Verizon CapEx spending on FiOS will total of $23 billion by 2010
  10. 10. Percent of Residents with No Choice in Internet Service Source: Pew Internet and Society Project
  11. 11. Connect Kentucky – the Model <ul><li>Private-public partnership managed by a non-profit organization </li></ul><ul><ul><li>Trust, reliance on private sector wherever possible </li></ul></ul><ul><li>Focus on BOTH supply and demand – build it and they will come not enough </li></ul><ul><li>Must find out where the “holes” are where broadband is not – mapping </li></ul><ul><ul><li>Work with companies to get data – strong non-disclosure agreement and non-profit not subject to FOIA </li></ul></ul><ul><ul><li>Develop effective GIS mapping system </li></ul></ul><ul><li>Continuously report progress to political leaders </li></ul><ul><li>Create eCommunity leadership teams </li></ul><ul><ul><li>Teams consist of local members from nine different groups (listed in next slide) </li></ul></ul><ul><ul><li>Conduct economic and business analysis </li></ul></ul><ul><li>Promote deployment – focused on private players first </li></ul><ul><ul><li>Aggregated demand and market analysis developed through eCommunity work </li></ul></ul><ul><ul><li>Private players may decline and if so, other options – including RUS loans working with local governments – are used </li></ul></ul>
  12. 12. Connect Kentucky - Mapping
  13. 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. 14. Connect Kentucky Model Produces Results <ul><li>U. S. model – platform competition, remove constraints on investment – has worked and is working </li></ul><ul><li>Mapping is important but it alone does not produce results </li></ul><ul><ul><li>In fact it can be harmful if not linked to effective programs focused on encouraging deployment and use </li></ul></ul><ul><li>Non-profit led, private-public partnership is results focused </li></ul><ul><ul><li>Community based with objective to “fill the holes” </li></ul></ul><ul><li>Data comes in many formats – gathering it and effectively teasing out key conclusions is not easy </li></ul><ul><ul><li>GIS systems are almost rocket science </li></ul></ul><ul><li>Focusing on the demand/uptake side of the equation is critical too </li></ul><ul><li>Connect Kentucky results speak for themselves </li></ul>

×