PELICAN MARSH CABLE COMMITTEE RECOMMENDATIONS. January 19, 2012

Transcription

1 PELICAN MARSH CABLE COMMITTEE RECOMMENDATIONS January 19, 2012

2 PELICAN MARSH CABLE BRIEFING JANUARY 19, 2012 Introduction of Consultants Finley Engineering CSI Industry technology trends Dean Minske, Finley Engineering Cable history Current system review Survey results 2011 and 2012 Cable Committee analysis Financial analysis Service Provider Selection Cost Comparisons Questions & Answers 2

3 INDUSTRY CONSULTANT CSI - Converged Services Inc. Provides broadband, cable / satellite, TV, Telecom & other consulting services to Associations Assist in the determination of incumbent & competitive service provider options Introduce NEW service providers Assist in negotiation of value, quality & capacity of services by providers Finley Engineering Provided incite to future technologies Pros & Cons of various infrastructure types Assist in evaluating vendor installation plan 3

4 CABLE COMMITTEE GOALS Expand bulk service agreement to include internet services utilizing state-of-the art infrastructure, if affordable Negotiate bulk service pricing as an OPTION for phone Get Service Providers to invest in our infrastructure with technology that will last well into the next decade Review all available technologies and analyze all financing options to offer the best technology at the most affordable costs Survey several community installations to determine satisfaction levels and performance results 4

5 2011 SURVEY RESULTS 92% of the owners use bulk TV service and most have added services( VCR, more than 1 TV set, HD, 3-D, etc.) 92% use internet (Comcast 78%) and 88% of the owners want bulk high speed internet service with our new agreement Most of the survey s negative comments were about TV quality, price & service response times 5

6 2012 SURVEY RESULTS 60% rated quality of TV reception as Good 42% rated quality of TV service as Good 93% use the Internet and 48 % said speed was Good (Comcast / Century Link) 3.69 average # of TVs in homes 55% are full-time 85% have landline or VoIP 54% in favor of incurring debt that would be retired via home resale fees 6

7 PM CABLE HISTORY 07/2005 2/ /1998 Original Contract with Colony Cablevision Revised contract with MediaOne Amendment with Comcast (7 + year agreement) 7

8 CURRENT PELICAN MARSH COAX CABLE INFRASTRUCTURE Issues: Distance Node to pedestal & pedestal to home 350/400 units per node Coaxial cable degradation over 18 years Future Limited expansion capacity (digital, HD, 3-D, etc) 8

9 FTTH FIBER TO THE HOME Only technology that delivers superior bandwidth usage is increasing annually Average download bandwidth increasing from 53 Mbps to 1,398 Mbps by 2020 More digital capacity to deliver enhanced products HD, Streaming Video, 3D, etc. Improved quality & reliability for ALL OWNERS Enable products that are not yet defined Enhances property values ($ avg. per home) 9

10 CABLE COMMITTEE 2 YEAR ACTION PLAN Committee formed & goals / schedules established RFP to Service Providers & retain Industry Consultant Service Provider presentations & visit referral communities NOTE: Cable committee information updates given at 14 Board meetings since June

11 PROJECT PLAN Bulk Cable/Internet Services Latest TECHNOLOGY Phone as an added option (not Bulk) Comply with Florida legislative changes Leverage for PM - 1 st of many SWF communities Review top 7 service providers Develop a strategic criteria comparison matrix Review funding alternatives own vs. lease Approval by January 2012 to allow adequate time for a pre-tested /phased installation Finalize contract and implement prior to 12/31/12 11

12 SERVICE PROVIDER SELECTION CRITERIA Technology Now and the FUTURE Capabilities & Capacity Expanded Bandwidth Industry BEST Reliability & Serviceability Cost buy vs. lease Service Provider s Financial Stability and ability to deliver scope of work on schedule 12

13 FLORIDA LEGISLATIVE CHANGES Associations in Florida are now allowed to expand community level decisions From Cable service only to Triple Play Cable, Internet & Phone services Plan for BULK services for TV & Internet services Phone service would be optional at volume pricing rates, if possible 13

14 INFRASTRUCTURE TYPES REVIEWED Coax Cable Coax Cable & Fiber Optics Hybrid FTTH via Fiber only FTTH is Fiber to the home FTTH via Satellite Three 1 meter satellite dishes required on property FTTP (premise) Shared services for multi unit homes 14

15 INFRASTRUCTURE WIRING OWNERSHIP OPTIONS Service Provider Ownership Could reduce monthly fees charged to residents Fully amortized investment should reduce future (10+ years) monthly service fees for owners Future service providers changes would be more difficult Pelican Marsh Foundation Ownership Requires upfront investment which must be funded by residents Could mean lower monthly charges by service provider Flexibility in selecting service provider after 10 years Lowers future costs maintenance fee only after 10 years No requirements for 3 rd set of wiring if we change provider 15

16 COAX CABLE VS. FIBER OPTICS COAX Pros & Cons Fiber Pros & Cons 16

17 COAX CABLE VS. FIBER OPTICS COAX CABLE PROS Already installed CONS OLD infrastructure Too many homes per node Bandwidth limitations ( feet) Upgrades require cable replacement FIBER OPTICS PROS Signal travels longer distance (20 miles) Fiber is upgraded by changing the electronics that creates the light impulses Better quality picture, faster bandwidth & improved reliability Increases home values CONS Requires new installation & significant investments 17

18 SERVICE PROVIDERS REVIEWED Comcast CenturyLink NUVU Broadstar / Pathworks H-Control Hotwire Communications Litestream NOTE: Verizon and Dish Network reviewed RFP but declined to submit. 18

19 OTHER COMMUNITIES SURVEYED Discussion Points Capabilities & broadband capacity Service criteria and satisfaction levels Resident feedback Pros & Cons Satisfaction survey Cost Analysis and ROI 19

20 VENDOR REVIEWS Operation Centers Visits Security Backup/Redundant support Technology Staff expertise Response times 20

21 RECOMMENDATIONS FOR FINAL 2 VENDORS Comcast Strengths Weaknesses Hotwire Communications Strengths Weaknesses 21

22 COMCAST ANALYSIS Utilize same Coaxial Cable Systems Infrastructure Fiber Optics not required although they use it to Node No investments committed outdated 30 year old technology Engineering study - node/pedestal ratio add 2 Nodes Recommendation units per node No onsite services resource & no commitment to improve service response times Competitive costs for cable / internet / phone service Cable & Internet bulk discount rates only Phone bulk rate discount only if 100% usage Nothing FREE cable box, security cameras, HD box, Wi-Fi Hotspots, etc. 22

23 HOTWIRE COMMUNICATIONS ANALYSIS FTTH installation with IPTV services Excellent quality & more channels Concierge Support Services Individual home installations No cost to rewire home if required at installation On-site service resources and 24X7 phone service support BEST service response times Financial stability $4M+ investment commitment to install infrastructure $3M Headend investment Cat 5 Hurricane backup protection Excellent customer reputation 150 FL communities Cost are competitive Free phone for 1 year and lower rates thereafter Free Wi-Fi Hotspots, Fitness center support, security cameras, HOA Club Houses, HD Box, Sports Package, etc. 23

24 OWNER BENEFITS Investment in state-of-the-art infrastructure & technology ($4+M) Home rewiring, where necessary at NO COST TO OWNERS More channels than Comcast plus ONE MONTH FREE for year 1 Includes free HDTV box, Sports pkg., modem Free WIFI Hotspots - Community Center, Tennis and Fitness & 3 Security Cameras Free service for all Association Club houses More internet bandwidth (20 Mbps) Concierge Service & Support Onsite service resources Customized customer Installation support teams OPTIONAL free phone service in year 1 & no minimum user commitment required Discounted rates for year 2 and beyond 24

25 SERVICE PROVIDER COST COMPARISON MONTHLY COSTS FOR YEAR 1 FOR 1 TV INSTALLATION ITEM COMCAST HOTWIRE BULK CABLE / INTERNET * $48 (12 Mbps) INCLUDED (20 Mbps) INTERNET MODEM $7 INCLUDED HD BOX RENTAL $10 INCLUDED SUB-TOTAL $65 $55 (incl. 1 mo. Free ) PHONE(OPTIONAL) $45 NO CHARGE YEAR 1 COMBINED TOTAL $110 $55 * Comcast offer is 5 years NOTE: Non-bulk services for part-time owners can be placed on hold. 25

26 SERVICE PROVIDER COST COMPARISON MONTHLY COSTS FOR YEAR 1 FOR 3 TV HOMES ITEM COMCAST HOTWIRE COMMUNICATIONS BULK CABLE / INTERNET * $48 (12mbps) INCLUDED (20 Mbps) INTERNET MODEM $7 INCLUDED HD BOX RENTAL $27 $9 ea) $16 $8 ea. & 1 Free) SUB-TOTAL $82 $71 (incl. 1 mo. Free ) DVR Box $30 ($10 per box) $24 ($8 per box) DVR Service $48 ($16 per box) $14 (whole house) SUB-TOTAL $160 $109 PHONE(OPTIONAL) $45 NO CHARGE YEAR 1 COMBINED TOTAL $205 $109 * Comcast offer is 5 years 26

27 HOTWIRE VS. COMCAST OPTIONAL SERVICES OPTIONS HOTWIRE COMCAST SAVINGS NOTES Digital Preferred $10 $18 44% 160 pure digital channels Digital Premium $30 $45 33% HDTV Service $10 $16 38% DVR Service $14 (Whole House) $14 (each box) Save if more than 2 TVs Internet Premium $20 $70 71% 50mbps ifax $10 N/A N/A Phone (optional) Free year 1 (Yrs 2-10 discounted) $47 100% Every channel including 40 premium and HD Locals NOTE: Optional services from Hotwire discounted at 30-50% of Comcast retail rates 27

28 PART-TIME RESIDENT COST ANALYSIS YEAR 1 COMCAST ITEM TIMING COST CURRENT INTERNET COST 4-5 MONTHS $200 - $250 * TURN ON/OFF COST PRIOR TO/AFTER $50 COMBINED TOTAL $250 - $300 HOTWIRE ITEM TIMING COST CURRENT INTERNET COST 12 MONTHS $240 TURN ON/OFF COST PRIOR TO/AFTER $0 COMBINED TOTAL $240 * Assumes Retail Internet Cost of $49.95 per month 28

29 REFERENCES St. Andrews Leisure Knoll Leisure Village Boca Falls 29

30 PMF CABLE COMMITTEE RECOMMENDATION Hotwire Communication BEST SERVICE Installation support teams every device working On-site dedicated technical & support resources Best Technology Future capacity Highest quality Home values Investment committed for installation Financially sound Best overall cost plus free phone service for 1 st year 30

31 PELICAN MARSH PROJECT PLAN ACTION START DATE END DATE HOME SURVEYS 03/01/12 To Completion DESIGN PHASE 02/15/12 03/15/12 FTTH DESIGN CAD 03/15/12 03/31/12 PROCUREMENT & PROJECT PLAN FINALIZED 04/01/12 04/30/12 CONSTRUCTION 05/15/12 08/31/12 FIBER TO PROPERTY & HEAD-END INSTALLATION 06/01/12 08/31/12 INSTALLATION OF SERVICE TO HOMES 09/01/12 11/15/12 LATE INSTALLS 01/02/13 To Completion 31

32 HOTWIRE ON-PROPERTY INSTALLATION STAFF Installation Support Launch Manager Construction Manager Inventory Manager 3 Technical Supervisors (responsible for 8 crews) 3 Dispatchers 4 Administrative Support Representatives 13 Trainers 26 Wiring Crews Quality assurance & customer verification Visit each home after installation Any home that is swapped to Hotwire services will receive all Bulk services at NOT COST 32

33 QUESTIONS & ANSWERS 33