Really- It’s Not That Easy 2017 ANNUAL CONFERENCE March 27, 2017 Is Cutting-The- Local Service Provider Cord The Answer? Really- It’s Not That Easy Our history has been encumbered with challenge, diversity, economic and global changes! This has impacted our current and future ability to compete and survive. But, it’s that exact diversity and challenges that have made us the great nation we are today. Presented By: Gordon Caverly, RCDD Regional Vice-President Building Tomorrow’s Networks Today!

And it Depends?? or Do you really want to design/build your own network or do you just want a high quality-fast reasonably priced internet connection? Can you legally enter into this business model according to your State and Local laws? Remember the issues:

Here’s a recap on what’s at stake!!! The Battle Rages over network access speeds This country has been about a synergistic approach between government and private enterprise. When this sensitive equation of balance between government & private enterprise gets out of control we are in trouble. When one side of this equation is allowed to change the laws in their favor over the general public’s greater good then it’s about profit and control over that area and does not exude a condition of long term survivability for the good of all! Here’s a recap on what’s at stake!!!

Remember, this is what you are fighting For! Passed 1 GBPS architecture! Network costs keep coming down Private enterprise business model is not conducive to a homogenous rollout. (You couldn’t build the roads the SP’s can’t build all of the fiber networks) 10 Gigabit per second

From Municipal To Cord Provider?

The Battle in many states – Where’s this going? https://www.youtube.com/watch?v=izYslyrm3oU (3:17 sec.)

What The Business Model Trend is Suggesting? Bandwidth is everything in business today, tomorrow and the future/You have it- or You don’t??? (You can compete or you can’t) Businesses will not necessarily be brick/mortar but IP/OTT/SDN/NFV Fiber/wireless networks will be GPON/AE topology Significant evolution in private/public partnerships or Public will self-fund If the local incumbent does not build this network – what will you do?

What The Technology Trend is Suggesting? IP\IoT will change all business models Cloud Services will define our next environment SDN/NFV will live in the Cloud (so will your IT Staff) All video services will eventually be IP/OTT Copper based networks are dying a slow death Future will be fiber/wireless topologies Currently, video services are a loss leader So, what does or how does the IoT environment impact our networks?

IOT/E World Wide Impact What are the projections for this network transitional technology and can your current business model and network architecture handle it? Currently 5-7 Billion Connected devices, ie, smart phones, computers, tablets, etc. Early adopters will be industrial and commercial! Cisco – 24 Billion connected devices by 2019 ESRI – 50 Billion connected devices by 2020 Morgan Stanley – 75 Billion connected devices by 2020 Huawei – 100 Billion connected devices by 2025 Goldman Sachs cites the Internet of Things as a $7 trillion opportunity by 2020 This technology will drastically change your business models, drive quick adoption of IoT/E services and impact your upload speed capabilities!

Video Delivery Services – A Game that’s about to change Legacy Video Environment: Major head end investments Expensive Equipment, Technical Staff Limited profit margins Lengthy Content Provider Contracts Expensive Set Top Boxes Bundled Services (Take what they want to give you) Very limited user control if any

Video Delivery Services –Making Video Services Profitable Future Video Environment: No expensive head end equipment Limited technical staff Profitable roll out and support of services and content Ala carte programming content (you pick your channels) Only pay for the shows you want to see Include your PEG channel in your OTT line up Cross hardware platform compatible Control over content and ads Only month to month contracts – How do you beat that? A preview of a future IP/OTT Video Provider with a profitable video business model for your network!!

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Stop by our table for a complete package of IP/OTT benefits including PEG channels directly to you and your subscribers!

To Answer The Question – Is Cutting the Cord The Answer? If the incumbents won’t enter into a public/private partnership If you truly want your community and businesses to participate in the global economy If you can implement a smart business model to support a high speed network And many more reasons the answer is a resounding “YES”!!!! The alternative to this direction is – Can you wait for the incumbent and can you afford them when they finally arrive?

Thank You Q & A Gordon Caverly, RCDD Regional Vice President Mid-State Consultants, Inc. gcaverly@mscon.com PH: 810-226-0750 Building Tomorrow’s Networks Today