Bandwidth Disclaimer: Every attempt to verify the accuracy of prices and features has been made, but they may differ on a case by case basis due to special offers etc. (as at 20/06/03) E&OE. Prepared by: Noel Ferguson Economic Development Manager South Waikato District Council

“Bandwidth” Internet Connection Types ADSL/Wireless Differences Measuring Apples and Apples Speed Comparisons The value of “Always On” Sample Bandwidth Costs The Economic Value of Bandwidth Connecting our Community

Internet Connection Types Dial-up = 95%+ of NZers using the web connect via “dial up” modem. Typical uses at low speed “dial-up” rates are and “surfing” using a web browser. Broadband – Higher speed Internet. Available via copper (ADSL), fibre optics, satellite, wireless technologies. Broadband is high speed and “always on” – your computer / PDA / phone is permanently connected to the Internet. Higher speed uses include multi-media, TV, video conferencing.

Wireless Broadband South Waikato Networks (SWN) – a broadband wireless internet joint venture between South Waikato District Council and Rural Networks Ltd. Intention is Community-owned – i.e. “user pays – user owns” Wireless – High Speed Internet similar to cell phones – i.e. no copper required. Ideal for towns and rural areas. Can be fixed or mobile. Low-cost b wireless technology could be used throughout rural NZ to provide high speed “always-on” Internet PLUS toll-free telephone services - for a tiny fraction of current annual spend on tolls and Internet.

ADSL/Wireless Differences ADSL is “Asymmetrical” i.e downloads are faster than uploads Wireless is “Symmetrical” i.e. same speed both ways ADSL is likely to remain at a top speed of 2MBit in the next 5 years. Wireless is likely to migrate from 11MBit (802.11b) to 54MBit (802.11g) and then 200MBit (80216) over the next 5 years.

Comparing “Apples and Apples” SWN advertised data speeds are MINIMUMS Most advertised speeds are MAXIMUMS SWN data rates are BYTES, others are BITS Example: –Home User ADSL is 128,000 BITS per second –SWN is 64,000 BYTES per second –There are 8 bits in a byte. Standard SWN is 512,000 BITS per second (i.e. 64,000 bytes * 8), or about 4.5 times faster than Home User ADSL.

Typical Data Volumes / Speeds With modern file sizes and the use of multimedia, excess data charges can mount up quickly. High bandwidth costs kill innovation.

“Real World” Speeds In this random “real world” test SWN (64K) is 38 times faster than ADSL home user service (128k) and 137 times faster than Dial-up Internet Service (56k).

“Always On” More important to us than sheer speed Businesses need to re-engineer sales processes - more important than speed Using low-cost technology minimises costs of integrating business with web For most people “always on” provides 80% of the bang for 20% of the buck

Sample Bandwidth Costs SWN has no data limit – i.e. NO ADD-ON DATA CHARGES (Published figures as at mid-2003)

South Waikato District Economic Development Strategy Enterprise River Tourism High-speed Broadband Internet is part of “Infrastructure” component outlined in the South Waikato District Council Economic Development Strategy. Like roads and electricity, Broadband Internet has been identified by the New Zealand Government as key to help NZ stay competitive. Farming / Forestry Image Infrastructure

Target Cost Savings By owning our telephone and Internet infrastructure we can retain $4m a year in the South Waikato. Note: SWN is toll-free within network (i.e. if SWN extends to Auckland, Waikato, BoP, Taupo etc, all calls / video- conferencing are toll-free). Toll free savings are additional.

Connecting our Community No limits to who we can be. No longer locked into traditional farming and forestry. Kids can stay in SWD. 1,000,000+ ‘virtual’ visitors to South Waikato web sites every month lifting our profile and self-image 10% of people who search web for “New Zealand” hit a South Waikato site – increased tourism / migration 20,000 sales leads each month from the Internet into the District could easily translate into 20-25% additional turnover for SWD businesses By integrating with the web and focussing on Export markets could create “New Economy” jobs in next 2-3 years.