The Changing Landscape of Communications Service Providers

May 1, 2012 – WSTCA Spring Conference

Fishing in Florida

A Change in Landscape

Industry Landscape

Broadband coverageNational Broadband Plan: 100Mbps to 100M homes

Competitive pressures keep pricing down

Underserved markets remain a regulatory focus

Connect America Fund: 4 x 1 Broadband

Seven million homes needing upgrade

Statistics from Oct 2011 FCC report on Internet Access Services

Connect America Fund

Regulatory

The Connect America Fund was established to meet that need

18.8 million Americans do not have access to broadband

Connect America Fund Obligations

The Connect America Fund (CAF)Must provide 4/1 Mbps Internet and voice service to any subscriber reasonably requesting service

Timeframe for providing this service is flexible

Replace existing high-cost support mechanisms over time

Annual reporting, subject to audit

Will continue as an operating subsidy, not a capital fund as originally proposed in the National Broadband Plan

Content

The Cloud

Examining Usage

Rogers Wireless Mobile data tiers based on usage caps

Voice unlimited evenings and weekends

Unlimited social networking

AT&TTiers based on speedUsage caps announced but not published or enforced

PlusnetTiers based on usage capsUnlimited off peak dataPlusnet Pro: QoS add-on prioritises pre-defined traffic classes

Telecom New ZealandTiers based on speed & usage capsOverage: down-speed or overage feeTiVo downloads zero-rated

Macro Trends

UbiquityNetflix

Game Consoles Blu-Ray Players HDTVs Streaming Players

Home Theater Systems

Phones and Tablets

Partnerships

Quality of Experience

Quality of Experience

Customization

Strategies for a Changing Landscape

Consumers Demand Availability

Coverage Will Require Creativity

Home / Office

SMBMDU

Base Stations

+Hospital

Content

Fixed Broadband

Wireless Broadband

Consumers Demand Variety

Content Devices

Consumers Demand Quality

Personalize to Your Market

http://www.calix.com/compass/flow_analyzer/calix_us_rural_broadband_report_download.html

Consumers Demand Control

Summary

Creative solutions will leverage the latest technologiesVDSL2 will be a key enabler to providing availability and coverage

Low density, line powered, easily deployable DSLAMs

Quality of Experience can set you apartMake your products more visible and easier to get

Leverage your presence in the community

Give consumers what they wantBroadband at home / work, on the go, in the community centers….

High quality, personalized services they can control

Monetize the broadband experienceUnderstand your customer’s usage patterns, service preferences and give them the tools to control what they spend

Set up a SW environment that enables / monetizes the experience

The Leader in Access InnovationYour partner in network transformation

Largest telecommunications systems vendor focused solely on access

Innovative. Global. Focused.

A Unified Access portfolio

Leader in advanced broadband accessNorth America’s fiber and multiservice access leader

Industry’s leading interoperability program

SW services that manage the broadband experience

A partner you can count onOver 1,000 customers in 40+ countries and territories

$2.5 billion+ in deployed systems

Financial strength, no debt, cash generating

Consultative. Aligned. Trusted.

Questions?