Ad Hoc Technology Community Services Committee. Recommendations to the Board

Transcription

1 Ad Hoc Technology Community Services Committee Recommendations to the Board Regarding Potential Options for Future Broadband & Cable Television Services PURPOSE STATEMENT AND TIMELINE Brambleton was planned and developed as one of the first Fiber to the Home (FTTH) communities in the country. This integrated infrastructure was designed to provide residents with a connected community and access to enhanced technology services, including high speed internet and cable television programming. These services are provided to the community through a bulk agreement which was established to ensure a universal level of service to all residents. In recognition that the current bulk agreement with Verizon for high speed internet and cable television services was due to expire in early 2020, Brambleton s Board of Directors chartered an ad hoc advisory committee and appointed volunteer residents to consider the potential options for future broadband services. In accordance with the Committee s charter, the Committee shall make a recommendation to the Board. The Board will make the final decision on a potential bulk agreement for broadband services. (Exhibit 1) The Committee has generally followed the Charter Timeline: 2017 Quarter BOD Develop Charter & Scope 1 Members Search & appointment 2 Consultant Search & Communication plan development 2 4 Consultant & Communication plan recommendation to the BOD 4 1

2 2018 Quarter Open Resident Listening sessions 1 Initial Draft recommendations 2 Resident input on initial draft recommendation(s) 3 Committee /BOD review of recommendations and input Committee Final recommendation and BOD Decision 3 & 4 This document provides the committee s recommendations and analysis and summarizes their activities to date. RECOMMENDATIONS At their meeting held on September 18, 2018, the Ad Hoc Technology Community Services Committee voted to recommend that the Board enter into negotiations with Verizon and to approve a new bulk agreement if the following terms can be achieved: FiOS Internet Service at speed marketed as 1 gigabit for a term not to exceed Five (5) years FiOS Extreme HD Television Programming for a term not to exceed Two (2) years with: o One (1) HD DVR Set Top Box provided or equivalent if service moves to the cloud and o An option to substitute One (1) cable card in place of the standard issued HD DVR Set Top Box At a monthly, per unit price not to exceed $

3 Over the course of their meetings and gathering of resident input, the Committee has identified several important items for consideration by the Board if a new agreement is negotiated with Verizon, including: No data throttling or data caps data should be unlimited. 5 year term for data / 2 year term for TV. Brambleton as a beta site for new technology. Upgraded Internet speeds should be pushed to all residents residents should not be required to call. Access to promotions for non bulk services and equipment for example, if Netflix is offered as a giveaway, Brambleton should receive the same promotion. Standardized pricing for upgraded service and onsite service calls. Customer Service Improvements Reporting of KPI s. Contract Benchmarking. Educational experiences like the Mars Explorer Lab bus and other opportunities should be proactively offered. Regular and proactive communications regarding promotions and services should be established. Verizon should provide information (through the HOA) to educate consumers on the benefits of FTTH Consideration for Value Added Services, including technology concierge/security. Potential benefits from leveraging the bulk agreement with Verizon with Verizon Wireless or other business channels within Verizon. In addition, the Committee members recommend that the Board consider re establishing a standing Technology Committee and advise that a communication plan be established to support resident education regarding the results of this process. ANALYSIS After meeting for over a year, the Committee came to their recommendations based upon a thorough understanding of the current market conditions, the technology available to the Brambleton community today, both through a potential future bulk agreement and outside of a bulk agreement, and from gathering resident input through two surveys and a resident listening session. The Committee s recommendations are based upon the following: 3

4 Infrastructure and Market Conditions The fiber infrastructure throughout Brambleton is wholly owned by Verizon and located within an unexclusive easement. To achieve a similar level of services as currently received by residents with the currently available technology, installation of new fiber in the unexclusive easements throughout Brambleton would cause significant disruption. Transition to an alternative service provider may result in lapses in service as the current bulk agreement expires and the alternative service provider(s) ramp(s) up services. Developing technology of 5G is reducing the number of companies investing in laying new fiber. 5G is not currently available in our market, and to date, the Committee is not aware of any planned deployments in our market area. Through informal analysis by the Committee members, it was confirmed that the costs for services like those provided through the bulk agreement were higher outside of Brambleton. Resident Input An initial comprehensive survey was conducted that achieved a 28% response rate and summary findings: o 95% of responding residents said high quality broadband is very important to their household, compared to the national average of 58%. o 65% of responding residents say high quality Pay TV is very important or somewhat important. o 93% of responding residents expressed desire for higher internet speeds if BCA were to enter into another bulk agreement. o 55% of responding residents expressed desire for inclusion of set top equipment if BCA were to enter into another bulk agreement. Resident input from the resident listening session included: o Requests for consideration to end the bulk agreement and allow residents to negotiate directly for their own selected services. o Misinformation and lack of understanding regarding the equipment and services provided through the bulk agreement and the roles and responsibilities of the HOA, builders, and residents. o Suggested considerations for a potential new bulk agreement. 4

5 A follow up survey was conducted that achieved an 18% response rate and summary findings: o 60.16% of responding residents indicated a preference for bulk internet with a minimum of 3x increased speed, HD television programming with an HD DVR set top box included. THE PROCESS At their April 4, 2017 meeting, the Board adopted the committee charter for the Ad Hoc Technology Community Services Committee. The charter established the specific scope of responsibility, defined the work product, and determined a general timeline for the committee s tasks and existence. The Board also established specific criteria for membership and conducted interviews of owners that were interested in serving on the committee. In addition to the key criteria for membership, the ability to commit to the anticipated term of the committee through the end of 2018 was identified as an important qualification for eligible applicants. On July 7, 2017, the Board appointed Jordan Crotty as Chairperson; Prasad Badiganti, Doug Deitterick, Mark Kram, Phillip Milliken, Jennifer Reagen, John Warren as voting members; Kirk Kalvar as alternate #1; and Jennifer Myers as alternate #2 to serve a term as necessary to accomplish the chartered responsibilities, or as chartered through 12/31/2018, whichever occurs first. *On 8/2/2018, Kirk Kalvar resigned his position on the Committee due to business obligations. On July 18, 2017, the Committee received an overview of the history of the technology and existing partnerships in Brambleton along with copies of the Technology Master Plan for Brambleton, which was developed and presented by The Broadband Group. This consultancy firm was engaged by the developer of Brambleton to help guide the overall technology vision for Brambleton. It was determined that the committee would meet monthly and that many channels of communication were to be used to inform residents of committee meetings and opportunities for input. Through their meetings from August 2017 November 2017, the Committee met and discussed survey development, developed a Board recommendation for a third party survey firm to support hosting an online survey, identification of major themes, analysis and a report of findings. 5

6 Through this period the Committee also developed a series of questions for Verizon regarding current services, infrastructure, service levels and potential future services. In December of 2017, the Committee held its first face to face meeting with representatives from Verizon. After Verizon s presentation to the Committee, there was extended discussion. The Committee also received approval from the Board to work with an independent market research firm, RVA Market Research & Consulting LLC, to review and refine the draft survey questions developed by the Committee and staff and to perform data collection and analysis. The survey was open for resident input for a two week period in March (Exhibit 2) In April 2018, residents were invited to attend a dedicated Resident Listening Session at the Committee s regularly scheduled meeting. The Committee considered all the input received and determined that further clarification of resident desire for bulk television services was necessary. During a two week period in September 2018, the Committee solicited resident input through a one question survey utilizing the online software tool SurveyMonkey to clarify their understanding of resident desires regarding a potential future bulk agreement including bulk television. (Exhibit 3). WHAT NEXT? The Committee suggests that the Board hold a Special Meeting on October 16, 2018 to receive the recommendations from the Committee and to hear resident input. Additionally, the Committee suggests that the Board enter into negotiations with Verizon with a goal of achieving an agreement as recommended. If the Board cannot achieve an agreement with Verizon that is in line with the Committee s recommendations, the Committee recommends that the Board consider maintaining the current agreement through 2019 and extending the Committee s term to allow for further review and potential negotiations. Appendix 1) Exhibit One: Ad Hoc Technology Community Services Committee Charter 2) Exhibit Two Survey 1 Questions and Results 3) Exhibit Three: Survey 2 Question and Results 6

7 BRAMBLETON COMMUNITY ASSOCIATION AD-HOC TECHNOLOGY/COMMUNITY SERVICES COMMITTEE COMMITTEE CHARTER WHEREAS, Article 4, Section 4.1 of the Bylaws states that The Board of Directors shall have all of the powers and duties necessary for the administration of the affairs of the Association, and may do all such acts and things as are not required by the Act or the Association Documents to be exercised and done by the Members; and WHEREAS, Article 7, Section 7.2 of the Bylaws states, The Board of Directors may, create and abolish from time to time, such other Committees consisting of two or more persons as the Board may deem appropriate to aid in the administration of the affairs of the Association. Such Committees shall have the powers and duties fixed by Resolution of the Board from time to time. NOW THEREFORE, be it resolved that an Ad-Hoc Technology/Community Services Committee shall be established, and that the following procedures for this Committee be adopted and implemented herewith: A. RESPONSIBILITIES This Committee shall serve under the direction and at the pleasure of the Board of Directors. This Committee shall have no authority to speak on behalf of the Board of Directors or to bind the Association financially or contractually, unless expressly authorized to do so in writing by the Board. The primary responsibility of the Ad-Hoc Technology/Community Services Committee is to advise the Board of Directors on the specific areas of consideration outlined below. The Committee will focus its efforts on the following endeavors: Understanding the current Bulk Services Agreement with Verizon Communications, Research comparable, alternative and enhanced services/service Providers, pricing, and pending technological advances in the marketplace from the Incumbent and Competitive Providers serving either Brambleton, Loudoun County, or other regional jurisdictions. Reviewing regulatory, physical or other restrictions or requirements, related to services provisioning, facilities installation, or delivery of broadband services with respect to Brambleton and, Obtaining resident input regarding Brambleton s potential options for future broadband services related to: Potentially continuing the Bulk Services Agreement at the current level of service, Potentially establishing a new Bulk Services Agreement with modified levels of services; o determining the desired modifications; or Potentially discontinuing the Bulk Services Agreement

8 Brambleton Community Association Technology Committee Committee Charter Approved by BCA BOD April 4, 2017 Page 2 of 6 The Committee will work with staff to review and evaluate the information gathered and to develop certain and related recommendation for the Board of Directors. Committee members acknowledge that the Board of Directors is ultimately responsible for determining what, if any, Community Services will be contracted for, and that the Board is not bound to act on, nor accept the Committee recommendation either in part or in whole. To accomplish these goals, the Board of Directors hereby establishes the following general timeline for the Committee: 2017 Quarter BOD Develop Charter & Scope 1 Members Search & appointment 2 Consultant Search & Communication plan development 2-4 Consultant & Communication plan recommendation to the BOD Quarter Open Resident Listening sessions 1 Initial Draft recommendations 2 Resident input on initial draft recommendation(s) 3 Committee /Bod BOD review of recommendations and input Committee Final recommendation and BOD Decision 3 & 4 The Board of Directors recognizes that the Committee may accomplish the work required prior to the proposed end of the timeline and/or make interim recommendations. The use of a consultant is not required. B. ELIGIBILITY Committee candidates and members shall be property owners in good standing. Good standing shall be defined as the absence of any liens, privilege penalties, architectural or Covenants violations, or pending legal action with the Brambleton Community Association. No person shall be eligible for appointment as a Committee member unless such person is an Owner, the Declarant (or a designee of the Declarant).

9 Brambleton Community Association Technology Committee Committee Charter Approved by BCA BOD April 4, 2017 Page 3 of 6 A member serving on any other Brambleton committee that is recognized by the Board of Directors may not concurrently serve on this Committee. No more than one (1) member of a household may serve on any committee at any time. C. COMMITTEE MEMBER QUALIIFCATIONS AND SELECTION PROCESS The Board recognizes the need for Committee members to appropriately represent both the interests of the Community, but also to ensure its members address key technology and telecommunications issues and interests. The ideal candidate will not necessarily have professional or technical industry credentials, rather a focused and experienced consumer understanding of the evolving technology and telecommunications industry, and an understanding of its products and services offered the the local and national marketplace. Candidates for membership on this Committee will be considered and selected based upon eligibility criteria which are unique to this Committee. The Board has the right to establish criteria for eligibility as they deem necessary. Suitable candidates for this Committee will be available to serve as Committee members, or alternate members, for the expected duration of the Committee s existence (estimated at two (2) years spanning 2017 through 2018). The Board shall favorably consider qualified candidates who are willing to commit to see the work of the Committee through to its conclusion; i.e., the presentation of its recommendation(s) to the Board by late 2018 regarding the provision of broadband services to Brambleton. To ensure continuity from current polices, at least one (1) voting member of the Committee will be appointed by the Board as a Declarant representative. D. APPOINTMENT AND TERMS This Committee shall, as determined by the Board of Directorsbe comprised of 7 members and two (2) alternate members. Alternate members will serve as non-voting members of the Committee and will be expected to attend all Committee meetings. In the event that a Committee member is unable to fulfill their term, the Board will appoint an alternate member. Available Committee seats will be advertised through the Association s official communications. The Board of Directors will strive to ensure that members from varying house types and locations within the Association are represented on its various Committees.

10 Brambleton Community Association Technology Committee Committee Charter Approved by BCA BOD April 4, 2017 Page 4 of 6 Interested homeowners must submit a written request for appointment to the Committee. As noted in Section C of this Charter, applicants for the Committee shall be required to disclose any potential conflicts of interest with the Loudoun County Incumbent Broadband Telecommunicatons Service Provider(s) and/or alternative Service Providers. Because of the important work of this Committee, the Board of Directors may elect to personally interview interested and qualified candidates as part of the appointment process. Committee members in good standing would be eligible for reappointment. The Board of Directors may make additional appointments throughout the year if vacancies occur on this Committee. To provide for effective operation and continuity, the term of service for members on this Committee shall be the same as the expected duration of the Committee s existence (2017 through 2018). Members appointed to fill vacancies that occur during the duration of the Committee shall serve for the remainder of the term of the Committee member they are replacing. E. REMOVAL The Board of Directors may remove any Committee member, including the Chairperson, at any time. The Committee may make recommendations to the Board of Directors regarding the removal of Committee members. A Committee member may, upon written notice, be removed, by the Committee chairperson, for failure to attend three (3) consecutive Committee meetings, or without notice or explanation., more than ½ of the scheduled meetings of any given calendar year. F. ELECTION OF OFFICERS The Board shall appoint the Chairperson of the Committee. The members of the Committee may make recommendations to the Board of Directors regarding the appointment of a Chairperson. Other officers of the Committee may be elected by the Committee s membership. At a minimum, the Committee shall elect a Secretary who shall be responsible for recording accurate minutes of the Committee s meetings and submitting such minutes to the Association General Manager, within (10) ten business days of the meeting, for inclusion in the Board Meeting packages. Minutes shall include a record of the date, time and place of each meeting, a record of Committee member attendance, and all votes of the Committee. The Chairperson, or his or her designee, shall be responsible for chairing meetings of the Committee.

11 Brambleton Community Association Technology Committee Committee Charter Approved by BCA BOD April 4, 2017 Page 5 of 6 G. MEETINGS Committee meetings shall be held in the Community Center or other recognized meeting place of the Association. All Committee meetings shall be open to the membership. Notice of the meetings and an agenda for the meeting, shall be made available to the members in accordance with Virginia Property Owners Association Act. For the membership to be reasonably informed of Committee meetings, the Committee Chairperson shall ensure that all regular meeting dates of the Committee are listed in any Community Newsletter, posted in the Community Center, posted on the Community Intranet or Website, and through any other means of posting that the Board deems appropriate. If it is necessary for the Committee to reschedule or cancel a meeting, the Committee Chairperson shall notify the Management staff at the earliest possible time so that the membership can be reasonably notified. The Committee Chairperson shall be responsible for contacting the members of the Committee regarding rescheduled or canceled meetings. Special or rescheduled meetings may be scheduled by the Chairperson upon five (5) Business Days posted notice stating the reason for the meeting. The Committee Chairperson shall designate a time period related to each meeting agenda for resident input. A majority of the total number of the Committee members shall constitute a quorum. For example, if the total number of Committee members is three (3), then a quorum of the members shall be two (2). A majority vote of members, while a quorum is present, shall constitute a decision of the Committee. All voting shall be conducted in open session. The Committee however may convene into Executive Session as permitted by the Virginia Property Owners AssociationAct. The Committee may take action outside of a meeting in accordance with the Virginia Non-Stock Corporation Act; Any such action must be ratified at the next regularly scheduled meeting of the Committee. All Committee meetings shall be conducted generally in accordance with Robert s Rules of Order. H. COMMUNICATIONS In the interest of facilitating full communications between the Board of Directors and the Committee, it is expected that the Committee Chairperson, or his or her designee, will attend each regularly scheduled business meeting of the Board of Directors. The Committee representative will present Committee recommendations, update the Board on the status of pending Committee tasks, request as needed assistance from the Board, and answer any questions the Board may have regarding Committee assignments. The Board of Directors may decide to designate a Board member as a Board Liasion to the Committee. The Committee, acting both collectively and through the Chairperson or designated representative, shall routinely and regularly communicate with the Board Liasion designated by the Board of Directors, if any, and the Association s General

12 Brambleton Community Association Technology Committee Committee Charter Approved by BCA BOD April 4, 2017 Page 6 of 6 Manager or other designee. The Committee shall provide accurate and timely information as to its activities for publication in any Community Newsletter and other communication vehicles of the Association. The Committee shall update this information on a regular basis. Communications and resident input are to be conducted in accordance with the Committee Communication Plan approved by the Board of Directors. Individual members of the Committee shall not communicate on behalf of the Association or the Committee unless expressly authorized to do so in writing by the Board of Directors. I. SUB-COMMITTEES The Committee may designate sub-committees to work on specific projects on behalf, and at the direction of, the Committee. Sub-Committee members are not voting members of the Committee unless they have been appointed as such in accordance with Paragraphs B & C of this Resolution.

13 Market Research Survey Prepared for: April 6, 2018

14 Key Findings 2

15 Key Findings Brambleton is the most broadband centered community RVA has ever surveyed. A total of 95% of Brambleton residents say broadband is very important. This fact could provide an opportunity for negotiation with Verizon, i.e. promoting the opportunity to test new services in this extremely broadband centric community. Almost all residents work a significant percentage from home. The majority of television consumption is now via streaming. Bulk Internet is more important to residents than bulk television, but those desiring bulk services overall are split between Internet only and Internet/TV bulk. Verizon is currently not meeting customer expectations in Brambleton, and has work to do to rebuild its brand image in the community. Desires includes better product in terms of speed and reliability at a reasonable cost, better customer service, and more equipment included in contracts. 3

16 Survey Demographics 4

17 Respondents to the survey were predominantly male and of middle age (35-49). Demographics Of Survey Sample Male 64% Female 28% Prefer not to disclose 8% Age % Age % Age % Age Age Over 75 0% 2% 0% 20% 40% 60% 80% 100% 5

18 Based on survey findings, 15% of those in Brambleton operate a home-based business (higher than the national average of 13%). Home-Based Business In Household Brambleton 15% National average 13% 0% 20% 40% 60% 80% 100% 6

19 Brambleton has an extremely high work from home population. A total of 85% of the respondents reported sometimes working from home (far higher than the national average of 46%). Approximately 29% of respondents report working entirely, or almost entirely, from home. Days Per Month Working From Home None 15% % % % 16 or more 12% Always work from home 17% 0% 20% 40% 60% 80% 100% 7

20 Communication Demographics 8

21 About half the residents currently subscribe to additional services from Verizon. Additional Verizon Communications Service Subscriptions Added channels/ Premium channels 28% Higher speeds 27% No other services 52% Not sure 5% 0% 20% 40% 60% 80% 100% 9

22 The percentage subscribing to a higher tier of service from Verizon is fairly even by age. Subscribe To Higher Tier Of Service From Verizon Crosstabulation By Age Among Age % Among Age % Among Age % Among Age % Among Age % 0% 20% 40% 60% 80% 100% 10

23 Only 16% currently use public WiFi in Brambleton. Use Of Public WiFi In Brambleton Public Areas Use 16% Not aware of public WiFi 61% No/ Not interested 23% 0% 20% 40% 60% 80% 100% 11

24 On average, there are 2.2 set top boxes per household in Brambleton. Number Of Set Top Boxes In Household 0 7% % % 5-6 5% 7+ Don t know 0% 1% Average 2.2 0% 20% 40% 60% 80% 100% 12

25 At peak periods, an average of 3.3 residents per household concurrently access the Internet (compared to the national average of 2.4). Number In Household Concurrently Accessing Internet 1 5% 2 23% 3 24% 4 36% 5 9% 6+ 3% Average 3.3 0% 20% 40% 60% 80% 100% 13

26 At peak periods, an average of 2.8 residents per household concurrently stream video. Number In Household Concurrently Streaming Video 1 11% 2 31% 3 26% 4 24% 5 6% 6+ 2% Average 2.8 0% 20% 40% 60% 80% 100% 14

27 Overall, there is more use of streamed content at Brambleton than traditional pay TV. Percent Of Television From Various Sources Online streaming 50% FiOS Pay TV 44% Free over-the-air 4% Satellite providers 2% 0% 20% 40% 60% 80% 100% 15

28 The percentage of television viewership varies significantly by age. About 60% below age 34 view TV via streaming, versus only 21% for those above age 65. Percent Television Via Online Streaming Crosstabulation By Age Among Age % Among Age % Among Age % Among Age % Among Age % 0% 20% 40% 60% 80% 100% 16

29 Importance Of Services 17

30 An amazing 95% of residents said high quality broadband is very important to their household (compared to the national average of 58%). Importance Of High Quality Broadband To Household Very important 95% Somewhat important 3% Neither 1% Somewhat unimportant 1% Very unimportant 0% 0% 20% 40% 60% 80% 100% 18

31 High quality broadband is very important to most in Brambleton. It is very important to 100% of those age High Quality Broadband Very Important Crosstabulation By Age, Gender Among Age Among Age Among Age Among Age % 96% 96% 94% Among Age % Among males Among females 97% 95% 0% 20% 40% 60% 80% 100% 19

32 Conversely, only 38% say high quality traditional pay TV is very important to their household. Importance Of High Quality Pay TV To Households Very important 38% Somewhat important 27% Neither 9% Somewhat unimportant 11% Very unimportant 15% 0% 20% 40% 60% 80% 100% 20

33 Traditional pay TV is most important to those of older ages, and somewhat more important to females. High Quality Traditional Pay TV Very Important Crosstabulation By Age, Gender Among Age % Among Age Among Age % 36% Among Age % Among Age % Among Males 35% Among Females 46% 0% 20% 40% 60% 80% 100% 21

34 It appears the majority of users of satellite TV are driven by international or sports programming. Importance Of Programming Genres Among Those Using Satellite TV International programming 54% Sports programming 50% Other 6% None of these 24% 0% 20% 40% 60% 80% 100% 22

35 Broadband Performance & Satisfaction 23

36 Overall, respondents reported 1.7 Internet service disruptions per month. Internet Service Disruptions Experienced 0/ Almost never 17% 1-2 per year 32% 1-2 per quarter/ 3 months 18% 1-2 per month 11% 3-4 per month 5-6 per month 7-8 per month Over 8 per month 6% 5% 2% 9% 0% 20% 40% 60% 80% 100% 24

37 Overall, respondents reported 0.6 pay TV service disruptions per month. Pay TV Service Disruptions Experienced 0/ Almost never 66% 1-2 per year 19% 1-2 per quarter/ 3 months 1-2 per month 3-4 per month 5-6 per month 7-8 per month Over 8 per month 5% 4% 1% 1% 1% 5% 0% 20% 40% 60% 80% 100% 25

38 Overall, respondents reported 0.5 telephone service disruptions per month. Telephone Service Disruptions Experienced Among Those With Landline Telephone Service 0/ Almost never 66% 1-2 per year 19% 1-2 per quarter/ 3 months 1-2 per month 3-4 per month 5-6 per month 7-8 per month Over 8 per month 5% 4% 1% 1% 1% 3% 0% 20% 40% 60% 80% 100% 26

39 A fairly small number of respondents were very satisfied with various elements of their FiOS service. Very Satisfied With Elements Of FiOS Service FioS Internet service availability FioS pay TV/ video - quality of picture 33% 32% FioS pay TV - channels available FioS pay TV - availability Verizon phone - service availability FioS Internet - speeds FioS Internet - customer service Verizon On-Demand free service Verizon - pay per view service 25% 24% 22% 19% 16% 16% 11% 0% 20% 40% 60% 80% 100% 27

40 Only 23% of residents are currently promoters of FiOS Internet. Meanwhile, 51% are detractors, yielding a net promoter score of negative 28%. Average FiOS Internet Satisfaction Promoter - 10 Promoter - 9 Neutral - 8 Neutral - 7 Detractor - 6 Detractor % 9% 13% 12% 10% 11% 23% Detractor - 4 Detractor - 3 Detractor - 2 5% 5% 5% 51% Detractor % 0% 20% 40% 60% 80% 100% 28

41 Older residents are more likely to be promoters (9-10 rating) of Verizon Internet. Males are also slightly more likely to be promoters. Percent Promoters Of Verizon Internet Crosstabulation By Age, Gender Among Age Among Age Among Age Among Age % 20% 22% 27% Among Age % Among males 25% Among females 19% 0% 20% 40% 60% 80% 100% 29

42 Older residents are also most likely to be promoters of Verizon pay TV. Percent Promoters Of Verizon Pay TV Crosstabulation By Age, Gender Among Age % Among Age Among Age Among Age % 13% 16% Among Age % Among males Among females 14% 15% 0% 20% 40% 60% 80% 100% 30

43 Only 14 percent of residents are currently promoters of FiOS television. Meanwhile, 67% are detractors, yielding a net promoter score of negative 54%. Average FiOS Pay TV Satisfaction Promoter - 10 Promoter - 9 Neutral - 8 Neutral - 7 Detractor - 6 Detractor -5 Detractor - 4 Detractor - 3 Detractor - 2 8% 6% 8% 11% 9% 15% 7% 7% 6% 14% 68% Detractor % 0% 20% 40% 60% 80% 100% 31

44 Interest In Future Bulk Services 32

45 Interest in bulk services is mixed, but there is clearly more interest in Internet bulk than TV bulk. Via two different questions, interest in Internet bulk was primarily spread between those who want Internet and TV bulk and those who desire Internet only bulk. Interest in Future Bulk Services Through HOA Interest in TV bulk 39% Interest in Internet bulk 67% No bulk services 34% Both Internet and TV 33% Internet-only bulk 32% TV-only bulk 1% 0% 20% 40% 60% 80% 100% 33

46 Having no bulk services is the most popular choice among the young. Internet only bulk is most popular among those of middle age, and dual bulk is most popular among those of older ages. (A very small percentage desiring bulk TV only are all over age 50.) Percent Promoters Of Verizon Pay TV Crosstabulation By Age, Gender Among Age % 25% 50% Among Age Among Age % 30% 34% 32% 32% 42% Among Age Among Age % 21% 31% 30% 37% 58% No Bulk Internet Bulk Both Bulk 0% 20% 40% 60% 80% 100% 34

47 Considering future bulk negotiations, residents are most interested in higher speeds, followed by enhanced security, and no cost, or low cost, premium equipment. Desires For Future Bulk Agreement (Percent saying somewhat or very important) Higher Internet speeds 93% Enhanced Internet security services Premium WiFi/ extenders, etc. Set-top boxes Enhanced support for home WiFi Subscription services (Netflix, etc.) Greater public WiFi coverage 63% 60% 55% 52% 49% 48% Premium channels 41% Phone service 14% 0% 20% 40% 60% 80% 100% 35

48 Open End Responses 36

49 Consolidated Open Ended Comments - Coded 55.5% PRODUCT FEATURES/ QUALITY Speed - want higher/ significant increase 17.9% On demand doesn't work, channels freeze, poor picture quality/pixelation 7.3% Frequent Internet disruptions/ WiFi problems 6.3% Speed - want Mbps basic, 1 Gig upgrade 4.8% Premium channel - one or more in bundle 4.2% Don't use most of the channels/ Don t use all of the services 2.7% Want better quality services with no HOA increase 2.0% No interest in landline 1.6% Want a service like Netflix, Hulu, etc. included 1.3% Shared bandwidth with neighbors is concerning 0.9% Want Weather Channel 0.8% Want 4k broadcast 0.7% Prefer Comcast 0.7% Want digital voice services 0.7% Cell phone doesn't work at home 0.5% Data caps -- don t want or high 0.3% Don't want Verizon 0.3% No interest in streaming services 0.2% Can t access extra services because goes through the HOA (ex: can't verify account to use Disney XD app.) 0.2% Want service for security cameras in community areas 0.2% Only want local and sports channels 0.2% Want international channels 0.2% Would like to choose channels/ a la carte 0.2% Every home should have a landline 0.1% As the first Verizon enhanced community, BCA has all of the first adopter issues 0.1% Service should be best available or not interested 0.1% Want more public WiFi coverage 0.1% Want static IP addresses/ IPv6 0.1% All homeowners should be included in updates/ upgrades 0.1% Want Google Fiber 0.1% infrastructure needs to be upgraded 0.1% TV guide should only show subscribed channels 0.1% 37

50 Consolidated Open Ended Comments Coded (Cont.) 52.6% HOA/ BULK INTEREST Don t provide bulk/ mandatory services - free competition 24.8% No interest in cable 7.2% Uncouple/ split Internet and TV 6.2% Don t provide bulk/ mandatory TV (Internet ok) 3.7% Offer residents a choice of packages as part of the bundle, possibly from multi providers 3.6% Tech changes frequently, homeowners should choose own providers - not tied to bundle fee in HOA 2.7% Length of contract not that long or allow more competition 1.9% Allow residents to opt-out 1.9% 5G -- allow such competition 0.1% Should be offered a discount code for the community instead of bulk contract 0.1% Offer cell service as part of bundle 0.1% Allow expert committee to choose plan 0.1% Want gym membership included in HOA 0.1% Interested sports amenities included in HOA 0.1% 33.6% COST Bundle contract should be cheaper than market price 7.8% Update prices and services/ speed more often 5.5% Price -- want reasonable/ lower price / lowest cost per mbps 4.9% Price - honor area promotions seen or received in mail 4.9% HOA fee is too expensive 2.9% Just want the best prices, whether bulk or individual 2.7% Expect lower HOA fees if video/ TV services are removed 2.2% Add-on upgrades are too expensive on top of HOA fee 2.1% Verizon employees living in neighborhood cannot use their discount 0.5% Pay for faster rates is a concern 0.2% 38

51 Consolidated Open Ended Comments Coded (Cont.) 19.1% EQUIPMENT Set top boxes - Don t want to pay for / 1 free/ purchase not rent 11.4% Poor quality/ out of date equipment -- remote, wireless router, etc. 5.4% Equipment should be included/ upgraded 2.3% 14.8% CUSTOMER SERVICE Customer service is awful They don't care about HOA customers 7.5% Service -- better, currently inadequate 5.4% Want ability to self serve account online instead of hotline 1.0% Service -- want dedicated hotline 0.9% 1.9% INFORMATION Want more info up front 1.4% Want to see comparisons with other vendors 0.5% 39

52 Questionnaire 40

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57 Market Research Survey Prepared for: April 6, 2018

58 Ad Hoc Technology Community Services Committee Second Survey Report Survey Period: 8/31/18 9/16/18 (17 days) Question: Totals above include duplicate addresses response rate of 18.7% Staff review to remove 31 duplicate address entries Answer Choices A 60.22% 598 B 39.17% 389 Total as compared to 5467 settled units 18.2% response 987 Survey note: There were a total of 6 responses that did not select A or B