WCTEL Technology Update for SLV

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Transcript of WCTEL Technology Update for SLV

Shannon SearsDirector of Commercial Operations

Agenda

Welcome and Introductions Shannon Sears, Director of Commercial Operations

Common vision and connection between WCTEL and SLVWes McAllister, WCTEL Board Member, North McCormick Representative

FTTH (Fiber-to-the-home) recap & investment. The internet of things.Jeff Wilson, CEO/General Manager

Security: Home Automation/PERSKristen Turner, Security/Home Automation Consultant

Digital Entertainment network upgradeTom Nickles, Converged Network Manager

Digital Entertainment industry programming rate increaseChuck Nash, Business Solutions Manager

Lance Tade, CFO

Future – How SLV and WCTEL are working together to build a nature and technology based community

Kirk Smith, SLV COO/General Manager

Wes McAllisterWCTEL Board Member

North McCormick Representative

Jeff WilsonChief Executive Officer/General Manager

About WCTEL

• Established in 1952• John McAllister, one of the

founding members, was President from 1952-2006

• Serving Western SC• 99% Fiber to the Home Network• 862 Square Miles Service Area• Over 1600 miles of fiber in the

ground

About WCTEL

Options

A Digital Subscriber Line or DSL connection, uses the existing copper wire to deliver high speed internet access.

Does not depend on distance so provides guaranteed speeds. Cable is typically shared amongst your neighbors, making it a slightly less secure option.

Conductor is glass so doesn’t generate electricity; making it immune to all sorts of interference.

West Carolina’s Plan

• Bandwidth• Locks• Lights• Sensors• Cameras• Monitoring• Managed Services• Video• Phone• And more…

GreenvilleColumbia

MyrtleBeach

Broadband Availability

$80M FTTH Project Completed in 2011

$60M Funded by Rural Utility Service

1,025 Customers

135 Fiber Route Miles

$5.3M Plant Investment $700K Electronics Investment

Construction Years: 2009-2010$6M Project for SLV FTTH

SLV Numbers

Marketing – New Positioning

WCTEL

Up to 1 Gbps

Internet speeds!

WCTEL introduced Gigabit Internet June

2015

Gigabit Site

http://www.wctel.com/Gigabit/

Kristen TurnerSecurity/Home Automation Consultant

West Carolina Security/Home Automation

• Pricing:• $99 Package Price• $24.99 Monthly Monitoring

• Includes• Touch Screen Panel with Siren• 3 Door or Window Sensors • 1 Infrared Motion Detector• 1 Key Fob• Window Stickers• Yard Sign

West Carolina Security/Home Automation

Play Video

West Carolina Security/Home Automation

West Carolina Security/Personal Emergency Response System

PersonalEmergencyResponseSystemPricing:

$41.95 One Time Activation Fee

$21.95 Monthly Monitoring

West Carolina Security/Personal Emergency Response System

Play Video

West Carolina Security

Tom NicklesConverged Network Manager

Digital Entertainment Network Upgrade

• Upgrading Software and Hardware on TV Platform• Current Software and Hardware will no longer be supported at the end of this year.

• Partnering with Two Other SC Telcos• Share cost• Share resources

Digital Entertainment Network Upgrade

• New Platform Features• VOD• Reliability• Correct Channel Lineup• Easily switch from SD to HD• Recordings are retained on new platform• New Caller ID Screen• Adult Locking PIN

VOD

SD to HD

Adult Locking

Fiber Optic Network Update

• New fiber optic equipment in offices• New indoor ONTs – Gigacenter • Symmetrical Gigabit speeds on wired

connections• Recorded speeds up to 950 Mbps

• State of the Art Wireless• 802.11AC and 802.11N Radios• Recorded speeds of 600+ Mbps symmetrical on

5 GHz

• Equipment installation almost complete

CHUCK NASHBusiness Solutions Manager

LANCE TADEChief Financial Officer

Digital Entertainment

Two major causes for programming rate increases within the cable TV industry:

1. Retransmission Consent Agreements

2. Tying and Bundling of Networks

Digital Entertainment

WHAT IS RETRANSMISSION CONSENT?

• The U.S. Congress has authorized broadcast stations to grant or deny permission for a cable television operator to "retransmit" the signal to its customers.

• In order to acquire consent the owner of the television station will demand some form of compensation from the cable operator, which is typically re-negotiated every three years.

Digital Entertainment

WHAT IF WEST CAROLINA REFUSES TO ACCEPT THE HIGHER RATE?

• Cable operators who refuse to accept the higher charge may face retaliation from the broadcaster.

• Federal rules and regulations hinder small cable operators serving small and rural markets to offer broadcast signals from neighboring television markets.

Digital Entertainment

WHAT IS TYING AND BUNDLING?

• According to the Federal Communications Commission (FCC), the typical American consumer is only interested in watching 17 cable channels.

• For a cable operator to provide any one of those channels, the operator (WCTEL) is required to carry and distribute several additional channels.

Digital Entertainment

The Majority of the Top 50 Cable Channels are Owned by Just Seven Companies:

•Disney-ESPN-ABC•Time Warner•Viacom•Liberty Media•Scripps•NBC Universal (GE)•Comcast

Digital Entertainment

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Digital Entertainment

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BOTTOM LINE:

Tying and Bundling is the process by which Conglomerated Media gets us to pay for all those channels we don’t want.

END RESULT:

WCTEL’s 2015 programming costs increased by 20.4%

Digital Entertainment

Digital Entertainment

Digital Entertainment

Digital Entertainment

Digital Entertainment

High Speed Fiber Pricing

Digital Entertainment

Differentiators

• Customer = Member-owner• Patronage Credits

• Local Presence• Quality Network• Quality Customer Service• Honest Pricing• Choose Local Save Local Discounts

Kirk SmithSLV Chief Operating Officer/General Manager