1. FTTH/FTTP
UPDATE
October, 2006
Copyright 2006 RVA

2. Vendor/Expert interviews Provider interviews Random segment interviews
Methodology
Background research
Vendor/Expert interviews
Provider interviews
Random segment interviews
Consumer interviews

3. Is It Growing?

4. FTTH Homes Passed (Cumulative – North America)
Source: RVA Render & Associates, LLC

5. FTTH Homes Marketed (Cumulative – North America)
Source: RVA Render & Associates, LLC

6. And The Big News…

7. FTTH Homes Connected (Cumulative – North America)
Over 1 Million Connected!
Source: RVA Render & Associates, LLC

8. FTTH Homes Connected (Cumulative – North America)
FCC Triennial Review
Council
Formed
Source: RVA Render & Associates, LLC 2006

9. Are We There Yet?

10. Current Status of Fixed Connectivity
Source: RVA Render & Associates, LLC

11. Years to Reach 90% of Americans??

12. Year-to-Year Growth in Homes Connected
Source: RVA Render & Associates, LLC

13. Approximate Annual Growth
in FTTH Subscribers
World’s Fastest
Growing Major
FTTH Market!
Source: RVA Render & Associates, LLC

14. What About Take Rates?

15. Overall Take-Rate for FTTH (Cumulative – North America by Year)
Source: RVA Render & Associates, LLC

16. Overall Take-Rate for FTTH Non-RBOC
(Cumulative – North America by Year)
Source: RVA Render & Associates, LLC

17. Do Customers Value FTTH?

18. Percent Satisfied With Type Of Service (Somewhat or Very Satisfied)

19. New Home “Price Premium”
Estimates of the FTTH
New Home “Price Premium”
Source: RVA Render & Associates, LLC

20. Does It Really Matter?

21. Source: RVA Render & Associates, LLC 2006

22. Advanced Broadband Has Significant Implications
Growth of GDP and Societal
Empowerment Relates to Spurts
In Private Technology Investment
(1920s, 1950s, 1960s, 1980s…)
AND…
Paradigm Changes in Two-Way
Human Connections

23. Does FTTH Spur Other Purchases?

24. FTTH Drives Other Purchases
CONSUMER ELECTRONIC SALES DRIVEN BY FTTH:
PERCENTAGE
AVG PRICE
TOTAL
HD televisions
15% x
$1,400.00 =
$210.00
Wireless networking equip.
10%
$200.00
$20.00
Computers 6%
$1,000.00
$60.00
Inside home wiring 4%
$2,000.00
$80.00
Video conferencing cameras 1%
$50.00
$.50
Total Average Per User
$370.50
Source: RVA Render & Associates, LLC

25. FTTH Generates Billions in Economic Activity
(Estimated One-Year Activity, Spring 2005-Spring 2006)
$1.2 Billion for Infrastructure Installation
$169 Million in Electronics Sales
(Estimated Total Activity, by 2010)
$21 Billion for Infrastructure
$4.5 Billion in Electronic Sales

26. Does FTTH Create Economic Development?

27. Traditional Business Attracted Because of FTTH
PLACE
POPULATION
TYPE
COMPANY
Bristol, VA
17,271
(MUNI)
Northrop Grumman
Fort Wayne, IN
203,369
(RBOC)
Raytheon
Macon, MO
5,283
(ILEC)
Onshore
Mason County, WA
53,000
(PUD)
Louisville Slugger, Sims
Quincy, WA (Grant County)
5,326
MSN (Microsoft)
Salem, IL
7,569
(CLEC)
Midwest Ag Energy Ethanol Plant
Wenatchee, WA (Chelan City)
28,515
Yahoo

28. FTTH Micro Business Development
(In home / Small business)
Video Editing
Market Consulting
Game Development and Serving
Engineering / Drafting
Scientific Sample Analysis
Software Development
Independent Content Creation
Source: RVA Render & Associates, LLC

29. Does FTTH Change Paradigms?

30. Number of Days Worked From Home Per Month
Source: RVA Render & Associates, LLC

31. The Future Will Be Exciting!

32. Our Report…

33. Why The Report? Third party validation
Deeper understanding… better strategy
Equipment Vendors
FTTH Service Providers
Content and Applications Providers
More accurate forecasting

34. And critical market information helps you gain more FTTH customers.
The 2006 RVA report is now available!

35. FTTH/FTTP
UPDATE
October, 2006
Copyright 2006 RVA