WISAPAPLOOZA Fall 2017 - Day 1 Show Daily

L Z OO 2017 4 WISPA PALOOZA 2017 SHOW I OCTOBER 9 - 13, 2017 www.bekabusinessmedia.com DAY 1 In addition to the favorable network economics, as well as the continually explo- sive demand for broadband services, espe- cially video, and the corresponding pent-up demand in under-served areas, The Carmel Group sees optimism for the market within spectrum trends. While relatively few spectrum bands support today’s BWA industry, “the FCC is exploring new bands that are expected to be well-suited for BWA networks, including the Citizens Broadband Radio Service band (3550- 3700 MHz, called CBRS), TV white spaces, and several extremely-high-frequency, millimeter-wave bands,” says the report. Industry efforts are also underway to expand geographically licensed areas in the LTE-grade 2.5 GHz band, and the growing accep- tance of spectrum sharing is further increasing availability and capacity for fixed wireless, with greater overall spectral efficiency. At the same time, stan- dards-based LTE, which originated in mobile standard bodies, is being deployed in fixed networks to give WISP providers greater speed and capacity, says the analyst firm. There’s also good news among the “cord-cutting” trend within video entertain- ment. As a growing number of consumers are unbundling from pay TV services and replacing expensive programming bundles with less expensive “over the top” (OTT) access via broadband, BWA providers make this cost-saving option – once available only to urban dwellers – available to rural and exurban customers. “We do not expect this trend will slow. If anything, we expect unbundling will accelerate as more consumers embrace Internet-based programming and watch programs on wireless devices at times of their choosing,” says The Carmel Group. Meanwhile, analysts at The Carmel Group cite potential federal regulatory changes that could open up more opportunities for BWA providers. The Federal Communications Commission and U.S. Department of Agricul- ture, for example, are eyeing plans to make broadband subsidy programs less oriented to incumbent telecom providers, more technology- neutral and more focused on cost-effectiveness and speed of deployment, says TCG. Spec- trum sharing initiatives also are underway, and the new chairman of the FCC, Ajit Pai — having himself grown up in rural America — has devel- oped a “Digital Empowerment Agenda” to priori- tize expanded access to broadband in under- served areas of the United States. The report also notes that while the overall outlook for the BWA industry is highly positive, there are significant challenges, including a bias in federal regulations toward the needs of national mobile wireless carriers and urban fixed wireline solutions such as cable and fiber. According to the report, the U.S. BWA industry is composed of more than 2,000 mostly small- and medium-sized businesses in all 50 states, with an average of 1,200 customers each. The largest concentrations of BWA providers are found in the Midwest, Northwest and South- west, as well as the central and northern parts of California. Many BWA leaders interviewed for this study indicated their “ideal” deployment occurs in residential clusters of 100 to 1,500 locations per square mile, areas that wired technology platforms often ignore because of the higher per-loca- tion cost to deliver service across sparsely populated areas. The report is based on inde- pendent research conducted in 2016, including 30 two-hour interviews with representatives of wireless broadband service providers, vendors and thought leaders. Other sources included the Wireless Internet Service Providers Association (WISPA), Wireless Communications Asso- ciation International (WCAI), bankers and financiers, other groups and telecom companies, and filings at the U.S. Securities and Exchange Commission. m The report is available from The Carmel Group or at www. WISPA.org. Detailed survey data is available for sale by contacting The Carmel Group. Residential Consumer Broadband Comparative Economics Fiber Cable Satellite Mobile BWA Capex/sub relative to BWA 1 70 45 10.5 2 21 10 Speed 3 1 Gbps 150 Mbps 12-35 Mbps 4 10-12 Mbps 100 Mbps Upgrade costs MODEST Only fiber remains same HIGH Complete CPE & network change LOW/HIGH Incremental upgrades until satellite fails HIGH Complete device & network change MODEST Incremental upgrades in CPE and network Broadband ARPU $69 $42 $61 $59 $51 Payback period 60 months 38 months 12 months 21 months 11.5 months (1) This is a relative presentation comparing all of the technologies to BWA, which is set to an index value of 10. See above for explanation. (2) Does not include the cost of satellites. (3) Max speeds; most service providers are not yet offering max speed. For cable, the DOCSIS 3.0 standard is capable of 1 Gbps. For BWA, point-to-point links and millimeter-wave, point-to-multipoint connections can provide more than 1 Gbps to end users. (4) Anticipated typical speed. Sources: Wisper ISP; National Rural Telecommunications Cooperative; The Carmel Group Source: The Carmel Group Source: The Carmel Group (WISP Story, continued from page 1)