Rural Broadband Update

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1 Rural Broadband Update March 2014 DOCUMENT TITLE / V 1.0 / XX DAY 2011 / PAGE 1 / PAGE 1

2 We share a common challenge 23% 13% 13% of New Zealand s population and 23% of businesses are in rural areas This is a diverse and low density population spread across a large area, with highly rural/remote areas making up almost half of New Zealand s land area with less than 2% of the population 13% of New Zealand s rural population do not have access to the internet, and while lack of access is an issue, it appears that disinterest and high costs are the biggest barriers to internet uptake in the rural sector Despite these scale and geographic challenges, the rural sector is a key contributor to the New Zealand economy. Improving broadband access and quality to New Zealand s rural population has the potential to significantly benefit the country as a whole. / PAGE 2

3 Meet Chorus New Zealand s largest telecommunications utility company ~1.8million lines connecting NZ homes and businesses Split from Telecom in December 2011 with a line of business restriction ~750 staff initially from old Chorus and Telecom Wholesale business units and increasingly external 2,000 service technicians from our service company partners: Downer, Transfield Services and Visionstream / PAGE 3

4 Our Network + Your Imagination = Infinite Possibilities Chorus is committed to improving the quality and uptake of ultra fast internet for all of New Zealand. As part of this commitment, we are in partnership with the Government to upgrade and extend the reach of rural broadband services through the Rural Broadband Initiative (RBI). DOCUMENT TITLE / V 1.0 / XX DAY 2011 / PAGE 4

5 RBI: Improving Rural Broadband Fibre to hospitals health clinics & libraries 154 Towers 5Mbps over 3G LTE improves speed 2014/5 4,500km new road coverage c. 1,200 cabinets Fibre to schools c in total DSL > 5Mbps 57% > 10Mbps 50% > 20Mbps 34% c. 3,100 km new open-access fibre / PAGE 5

6 How are we going? We are delivering: Fibre based services at urban speeds and prices to rural schools Fibre services available for Hospitals and Libraries Upgraded broadband to 53% of rural lines Fibre to power Vodafone RBI mobile sites Launched Fibre to Rural Communities RBI Ready today Schools 1, Cabinets 1, ,000 lines Libraries RBI Towers DOCUMENT * As TITLE at / V 1.0 end / XX DAY of 2011 July / PAGE 62013

7 Rural Health / PAGE 7

8 Fibre to Rural Health Rural Health in the RBI is made up as follows: Hospitals (39) Integrated Family Health Centres (10) Rural Health Centres (226) Rural GPs Each customer groupings have different service availability and pricing is dependant on the user group. / PAGE 8

9 Vodafone Rural Broadband Rural GP Network Conference 2014 Roger Ellis Head of Public Affairs 14 March 2014

10 Towards a successful Rural Broadband Initiative (RBI) deployment Community engagement: rural, iwi, councils, etc Consenting process Community support Contractual objectives with timeframes and population coverage 10

11 Vodafone RBI Progress An estimated 184,000 households have access to the rural broadband service. 79 new sites are live and providing service with a total of 81 built only 73 to go! 256 existing Vodafone sites are upgraded and providing service only 131 to go! The programme is in great shape to meet all the government targets by RBI Year 3 end, 30 June Programme completion date is 30 June June 14 Goal Actual to date New Sites Leased New Sites Consent Granted New Sites Built New Sites Live Existing Site Upgrades

12 North Island Current Coverage 12

13 South Island Current Coverage 13

14 Where can I by rural broadband? 14

15 What happens at my house? External antenna for better performance 21 Mbps WiFi router delivers in-home broadband. Connectivity can be wireless or by Ethernet cable 15

16 So what can I do with this stuff? Wireless broadband for those without BB access or slow BB access Retail competition for both broadband and mobile services Get connected mobile calls, texts, mobile broadband Soon your young people can be connected with access to services available in the big smoke Faster access to emergency services as well as possible civil defence improvements warning sirens Rural health services will be enhanced remote access to specialists, in home care through monitoring devices Tourism and business opportunities to be able to promote the area, business, Iwi etc through social media Agribusiness opportunities such as the National Animal Identification and Tracing initiative (NAIT) Access to clever applications such as Hika for learning Maori and Fitness Pal for health and wellbeing 16

17 Are rural people using rural broadband? WBB customers are increasing usage with access to faster modems and speeds current packages allow for 15GB of data per month Median WBB usage v in bundle allowance Median customer usage of WBB4 plans GB Bundle optimisation at 66% 100% data increase over 12 months c400mb monthly data increase per month Estimate c6-8 months with current usage to reach 15GB data allowance Mean GB Usage Data Allowance Plans will change to keep pace with usage 17

18 Other Sites Springfield Central what a view! Kaitangata 18

19 Conclusion Great concept Being executed well Delivery of project is on time and budget Outcome is much improved broadband services for rural communities and an opening up of opportunities for households and businesses. 19

20 Internet and Rural Practice March 2014

21

22 Introduction to Farmside Publicly listed Nationwide with 50 field staff Focus on rural Over 15,000 rural broadband customers o(satellite, wireless, fixed line, landline and mobile) Three key trends; o Broadband o Mobile o Social

23 Key Trends - Broadband Global internet uptake. Internet users per 100 inhabitants Source: Wikipedia

24 Key Trends - Broadband Dial up versus broadband Source; PEW Research Centre

25 Key Trends - Mobile Devices Source: PEW Research Centre

26 Internet access via mobile 50% of Farmside customers are accessing the internet via their mobile phones 50% of mobile access world wide is via home or other internet

27 Key Trends - Social Social media rises Source: PEW Research Centre

28 Rural Broadband Access - Satellite All rural dwellers can have access to broadband

29 Rural Broadband Access - Satellite Satellite can be installed and accessed anywhere in NZ

30 Rural Broadband Access - Satellite Satellite can be installed and accessed anywhere in NZ

31 Rural Broadband Access - Satellite Satellite can be installed and accessed anywhere in NZ

32 Rural Broadband Access RBI Wireless All rural dwellers can have access to broadband

33 Rural Broadband Access RBI Wireless All rural dwellers can have access to broadband

34 Celebrating Farmside s 1000 th RBI wireless customer

35 Rural Broadband Access Fixed Line All rural dwellers can have access to broadband

36 Rural Practice Health institutions are top priority broadband users. In rural areas, in particular, better broadband access will help remove distance as a barrier to receiving quality healthcare Article; Broadband in Health Care, Ministry of Innovation, Business and Employment

37 The Practice Access to information and resources, archived or live Practice management applications

38 The Patient Population Patient Records The vision of the National Health IT Plan is that New Zealanders will have an electronic set of personal health information, which is accessible to them and their treatment provider any time and anywhere Article; Broadband in Health Care, Ministry of Innovation, Business and Employment

39 The Patient Population The Expert

40 The Patient Population Self service/management online

41 The Patient Population Self service/management apps Medscreen Patients can access current medical status, medical history, test results at all times anywhere in the world. Doctors Find your nearest doctor, all around the world. Based on your current GPS location or selected location Symptom checker Find your nearest doctor, all around the world. Based on your current GPS location or selected location

42 The social media bug

43 The Patient Population Rural Online Fencepost Farming

44 Internet retailers Good customer service or cheapest? Consistent user experience? Ongoing Bundling of products.

45 Internet retailers Good customer service or cheapest? Consistent user experience? Ongoing Bundling of products. Still plenty of users to come on board

46 Farmside Rural focused All communications provider

47 What s next? 1 2 QUALITATIVE RESEARCH QUANTITATIVE RESEARCH CHORUS REQUIRES A MORE COMPREHENSIVE AND IN DEPTH UNDERSTANDING OF THE RURAL SECTOR IN ORDER TO REALISE THE OPPORTUNITIES IN THIS AREA. THIS UNDERSTANDING WILL BE USED TO SHAPE A RURAL STRATEGY AND GUIDE INVESTMENT DECISIONS IN TERMS OF TARGETED PRODUCT, MARKETING, COMMUNICATIONS, PROPOSITION DEVELOPMENT AND BRAND/REPUTATION MANAGEMENT. THE RESEARCH WILL BE USED TO SUPPORT SALES TEAMS TO HAVE INSIGHT LED CONVERSATIONS WITH THEIR RSP CUSTOMERS, AND BECOME A TRUSTED ADVISOR AND SOURCE OF INFORMATION FOR STAKEHOLDERS THAT ARE INTERESTED IN SUPPORTING RURAL COMMUNITY INITIATIVES. / PAGE 47

48 End / PAGE 48

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