1. The State of North American FTTH Michael Render

2. The State Of North American FTTH RVA LLC What Is The Status Of FTTH?

3. The State Of North American FTTH RVA LLC 350 Provider/ Vendor/ Expert Interviews: March and September 2013 2,100 Consumer Interviews: June, 2013 Research Sources North America (USA, Canada, Caribbean, Mexico*) *Mexico stats from IDATE

4. The State Of North American FTTH RVA LLC Progress Of FTTH

5. The State Of North American FTTH RVA LLC North American FTTH Connections Connections Pass 10 Million! 2013 Homes Passed: 27.7M 2013 Homes Marketed: 25.5M 2013 Homes Connected: 10.7M Homes passed = Homes that could be served (includes builds in progress etc.) Home marketed = Homes actively marketed with FTTH

6. The State Of North American FTTH RVA LLC Other Countries In North America Are Now Expanding The U.S. Has 90% Of NA Homes Connected.52 million connections 9.60 million connections.49 million connections.05 million connections

7. The State Of North American FTTH RVA LLC U.S. FTTH Penetration Is Not Evenly Distributed State Households Connected Ranges From Under 1% to 33% Tier 3s Verizon Munis

8. The State Of North American FTTH RVA LLC Higher Capacity Broadband Is Winning

9. The State Of North American FTTH RVA LLC Smaller Providers Are Contributing To Growth U.S. FTTH Connections By Provider Type

10. The State Of North American FTTH RVA LLC FTTH Maximum Download Speeds Are Increasing By Provider Type

11. The State Of North American FTTH RVA LLC North American Gigabit FTTH Providers Are Growing

12. The State Of North American FTTH RVA LLC FTTH Greenfield Is Increasing In the 1998-2007 housing boom, relatively few lots were fiber fed – so many overestimated the impact of Greenfield FTTH. In the coming housing increase or boom, more and more lots will be fiber fed. Many underestimate coming Greenfield FTTH based on their experience with the last housing boom.

13. The State Of North American FTTH RVA LLC U.S. FTTH Overbuild Versus Greenfield Development Actuals and Forecast

14. The State Of North American FTTH RVA LLC Public Awareness Of FTTH

15. The State Of North American FTTH RVA LLC Awareness Of Broadband Related Terms Among Random Broadband Users

16. The State Of North American FTTH RVA LLC Many Misunderstand The Importance Of The Network New YorkAustin

17. The State Of North American FTTH RVA LLC Wireline Value Proposition Consumers: Extensive In Home Broadband Use

18. The State Of North American FTTH RVA LLC In-Home Broadband Time Is Increasing Hours For An Average Person Spending 9 Waking Hours At Home Estimated “screen time” is 7.5 hours - 83% of waking hours at home. (Note: some time could be screen-to-screen multitasking and screen-to-non screen multitasking.) 4.8 online hours

19. The State Of North American FTTH RVA LLC The Number Of In-Home Internet Devices Is Growing The average random broadband home now supports approximately five Internet-ready devices….. …. and an estimated 2.8 HD televisions/ DVRs (many fed by IP).

20. The State Of North American FTTH RVA LLC Large Screen Devices Continue To Drive Wireline Percent Preferring Devices At Home For Primary Online Tasks 2012 Data

21. The State Of North American FTTH RVA LLC Home Mobile Devices Are Being Handed Off To Wireline A total of 67% of mobile users say they sometimes connect their devices to in- home WiFi to increase speed or avoid cellular charges. About 78% would do so if easier or automatic.

22. The State Of North American FTTH RVA LLC Multi Screen Use Is Increasing Tablet Devices Are Often Used While Watching TV A total of 34% percent of random fixed broadband users own both a Smartphone and a Tablet. This heavy mobile device user group estimates they use a second device about 47% of the time while watching TV.

23. The State Of North American FTTH RVA LLC OTT Video Is Driving More Wireline Traffic

24. The State Of North American FTTH RVA LLC FTTH Value Proposition Providers: More Than Long Term Capacity

25. The State Of North American FTTH RVA LLC FTTH Results In Higher Revenue Average Cost All Consumer Reported Services By Broadband Type

26. The State Of North American FTTH RVA LLC FTTH Results In High Take Rates U.S. Take-Rates Reach 45.8%

27. The State Of North American FTTH RVA LLC FTTH Take-Rates Are Even Higher In Many Cases Take-Rates Vary From 25% To 81% 2013 Data

28. The State Of North American FTTH RVA LLC FTTH Results in Lower Operations Costs Estimated Opex Savings Among Those With Active FTTH Customers Average Estimate: 20.4%

29. The State Of North American FTTH RVA LLC FTTH Value Proposition Consumers: FTTH Performance Advantages

30. The State Of North American FTTH RVA LLC Speed Is Just Part Of The Story

31. The State Of North American FTTH RVA LLC Customers Describe Diverse FTTH Advantages Categorization Of Open-End Responses The real “triple play”:

32. The State Of North American FTTH RVA LLC Better Data

33. The State Of North American FTTH RVA LLC FTTH Has The Highest Tested Download Speeds Median Tested Download Speeds

34. The State Of North American FTTH RVA LLC FTTH Is “Pulling Away” With Tested Upload Speeds Median Tested Upload Speeds

35. The State Of North American FTTH RVA LLC Users Are More Satisfied With The FTTH Experience Percent “Very Satisfied” With Aspects Of Data

36. The State Of North American FTTH RVA LLC Better Video

37. The State Of North American FTTH RVA LLC FTTH Offers More HD Television Channels

38. The State Of North American FTTH RVA LLC Users Are More Satisfied With The FTTH Experience Percent “Very Satisfied” With Aspects Of Video

39. The State Of North American FTTH RVA LLC Better Reliability/ Service

40. The State Of North American FTTH RVA LLC FTTH Is The Most Stable Platform Reported Reboots And Calls Required

41. The State Of North American FTTH RVA LLC Users Are More Satisfied With The FTTH Experience Percent “Very Satisfied” With Aspects Of Service

42. The State Of North American FTTH RVA LLC Better Security

43. The State Of North American FTTH RVA LLC Users Are More Satisfied With The FTTH Experience Percent “Very Satisfied” With Aspects Of Security

44. The State Of North American FTTH RVA LLC Better Price

45. The State Of North American FTTH RVA LLC FTTH Has The Lowest Cost Per Mbps

46. The State Of North American FTTH RVA LLC FTTH Value Proposition Consumers: Impacts Unique To FTTH Performance

47. The State Of North American FTTH RVA LLC FTTH Adds Home Value Discount Required To Consider Equal $300,000 Home Without FTTH 2012 Data

48. The State Of North American FTTH RVA LLC Employed FTTH users say they work 1.3 extra days per month from home (on average). 14% of FTTH users have a home-based business with over $10,000 estimated incremental income from FTTH versus other broadband. FTTH Changes How We Work 2013 Data

49. The State Of North American FTTH RVA LLC Future FTTH Value Proposition Consumers: Apps That Simply Require FTTH

50. The State Of North American FTTH RVA LLC There Is Interest In Emerging FTTH Apps Special Interest Now: Women with Children, Seniors Special Interest Now: WomenSpecial Interest Now: Young Males Special Interest Now: Young Men & Women

51. The State Of North American FTTH RVA LLC The Sky Is The Limit In our lifetimes…. We may be getting a full diagnostic in- home checkup from a clinic in Germany. We may be playing tag with our grandchildren across the country by “inhabiting” an “Avatar”-like robot.

52. The State of North American FTTH Michael Render