North American Broadband Market Update

Table of Contents

1.0 Notes on Methodology

2.0 The Changing Dynamics of the Broadband Service Market

• 2.1 Narrowband Market Update - the Late Majority
• 2.2 Broadband Market Overview: U.S. and Canada
  • 2.2.1 U.S.
  • 2.2.2 Canada
• 2.3 Competitive Dynamics: DSL vs. Cable
  • 2.3.1 DSL
  • 2.3.2 Cable MSO
• 2.4 ARPU Analysis
• 2.5 Bandwidth Cost Analysis
• 2.6 Regional Differences

3.0 Lessons from the European Broadband Market

4.0 Fiber Deployment: Making Inroads

• 4.1 Introduction to Technologies: FTTP, FTTN, and FTTC
• 4.2 Progress Report: Verizon vs. AT&T
• 4.3 Cable MSOs Fighting Back

5.0 Update on Alternative Broadband Technologies

• 5.1 Broadband Wireless
  • 5.1.1 Fixed Broadband Wireless
  • 5.1.2 Mobile Broadband Wireless
  • 5.1.3 The 700 MHz Auction
• 5.2 Municipal Wireless Network
• 5.3 Broadband Over Power Line
• 5.4 Satellite Broadband

6.0 Key Enabling Technologies

• 6.1 Fixed Mobile Convergence Technologies
• 6.2 IP Multimedia Subsystem (IMS)
• 6.3 Femtocell
• 6.4 The Growing Importance of Residential Gateways (RGs)

7.0 Tiered Services, Bundled Services, and VAS Services

• 7.1 Tiered Services
• 7.2 Bundled Services
• 7.3 VoIP Services
• 7.4 Value-added Services
  • 7.4.1 Consumer Interest
  • 7.4.2 Broadband Entertainment Services
  • 7.4.3 Home Networking Services
  • 7.4.4 Storage/Backup Services
• 7.5 The Threat of Over-the-Top Services

8.0 Market Forecasts

9.0 Market Implications and Recommendations

Section I: Growth of Internet Adoption

Section II: Demographics Analysis of Broadband Households

Section III: Narrowband-Broadband Migration

Section IV: Broadband Satisfaction Analysis

• Satisfaction Ratings by Providers in the U.S. and Canada
• Drivers for Satisfaction

Section V: Broadband Subscribers' Churns: a Detailed Analysis

• Internet Services: Who Switched and Where They Went
• A Comparison of Internet and Video Services: Who has Switched
• Decision Drivers for Switching Service Providers
• Those Who Plan to Move: Service Choices of Internet, Phone, and Video
• Those Who Moved: Which Service Provider Did They Call First

Section VI: Value-Added Services

• Broadband Entertainment
• Home Networking
  • Adoption and Usage of Home Network
  • Home Networking Services from Service Providers
• Internet Security
• Online Storage
• Automated PC Maintenance - “the Dashboard”

Section VII: Profiles of Cable Operators

• Comcast Corporation
• Time Warner Cable, Inc.
• Charter Communications, Inc.
• Cablevision Systems Corp.
• Cox Communications, Inc.
• Rogers Communications, Inc.

Section VIII: Profiles of Telecom Operators

• AT&T Inc.
• Verizon Communications, Inc.
• Qwest Communications International, Inc.
• Embarq
• Clearwire Corporation
• Sprint Nextel
• Bell Canada Enterprises, Inc.
• Telus

• Likelihood for Narrowband Users to Upgrade to a Broadband Service
• Growth (Decline) of Narrowband-Only Households (1999-2010)
• Subscriber Growth (Lorss) of Major Narrowband Service Providers
• Growth of Cable/DSL Residential Broadband Services (Q3 2005 to Q3 2007)
• Market Share of Leading Broadband Service Providers
• Percentage of Top Four BSP Quarterly Subscriber Gains among Industry-wide Quarterly Gains (Q3 2005 to Q3 2007)
• Percentage Breakdown of Total DSL and Cable Broadband (Residential) Subscribers
• Market Share By Connection Methods in Canada (2007)
• Major Canadian Broadband Providers' Subscriber Growth 2003-Q3 2007
• Introductory Download Speeds from Cable MSOs: 2006 vs 2007
• Quarterly Growth Rate of Cable and DSL Residential Broadband Subscribers (%)
• Broadband Monthly ARPU: Dial-up, DSL, and Cable
• Broadband ARPU: DSL vs. Cable Service Providers
• Introductory Bandwidth Cost One MB/month: DSL vs. Cable
• Cable MSOs Enjoy a Strong Lead in High-Bandwidth Services (December 2006)
• Penetration of DSL and Cable Broadband among Top Ten Broadband States
• Availability of DSL and Cable Modem Services among Top Ten Broadband States (Dec. 2006)
• Percentage of Cable Modem Connections over Total Broadband Connections
• Growth of European Broadband Penetration Rate per Capita
• Interest in a Bundled Service Package
• European FTTx Deployment Plans
• Growth of Residential Fiber High-Speed Lines (Q4 2005 - Q3 2007)
• Comparison of Different FTTx Networks
• PON Technology Summary
• Households Passed and Connected by Deep Fiber
• Cable MSOs' New Technologies and Standards
• Cable MSOs' Marketing Initiatives in 2007
• Interest in Mobile Broadband and Monthly Expenditure Willing to Spend by Segments
• 700 MHz Spectrum Deployment Economics Compared to 1900 MHz and 2400 MHz
• Large Muni-Wireless Plans Scaling back
• Notable Utility BPL Deployments in the U.S.
• Satellite Broadband Services in the U.S.
• Major Voice-Centric FMC Deployments
• An IMS Framework
• IMS Deployments of Major Telecom Vendors
• Femtocell Network Demonstration
• Additional Benefits of Femtocells
• Femtocell Development of Major Vendors
• Residential Gateways: Broadband Service Providers
• Broadband Service: Important Factors in Driving Satisfaction
• Bundled Services: DSL vs. Cable in Subscriber Numbers (Q1/07)
• Bundled Services: DSL vs. Cable in Percentages
• Cable MSOs and Their Bundled Services
• VoIP Services from Major Telecom and Cable Carriers
• Additional Services Desired for a Service Bundle: Internet-based Services
• Monthly Fee a Subscriber is willing to Pay for Additional Internet-Based Services
• Online Entertainment Activities (Q3/2007)
• Annual U.S. Revenue: Online Content Services (Millions of U.S. Dollars)
• Home Network Growth
• Home Network Type (Q3/07)
• Home Networking Offerings: Telecom and Cable Operators
• Interest in an Online Storage Solution
• Forecast of U.S. Broadband Households by Access Methods (2007-2012)
• Forecast of FTTx and Mobile Wireless Residential Subscribers (2007-2012)
• Forecast of U.S. Broadband Service Revenue (2007-2012)

• Internet and Broadband Adoption
• Internet Penetration by Gender
• Internet Penetration by Age
• Internet Penetration by Education
• Upgrade Internet Access (Q1/07)
• Breakdown of all U.S. Households by Internet Access and Intent to Subscribe (Q1/2007)
• Broadband and National Demographics: Gender Comparison
• Broadband Users Among All Age Groups
• Broadband and National Demographics: Income Comparison
• Broadband and National Demographics: Education Comparison
• Likelihood for Narrowband Users to Upgrade to a Broadband Service
• U.S. Broadband Customers: Rating Satisfaction with Provider
• Canadian Broadband Customers: Rating Satisfaction with Provider
• High and Low Satisfaction: U.S. Broadband Carriers
• High and Low Satisfaction: Canadian Broadband Carriers
• Broadband Service: Important Factors in Driving Satisfaction (U.S.)
• Broadband Service: Important Factors in Driving Satisfaction (Canada)
• Churn by Current Internet Access Method (Q4/06)
• Churn by Previous Internet Access Method (Q4/06)
• How Did Voluntary Churners Churn: by Previous Internet Access Method
• Moving Churners by Previous Access Methods
• How Did Moving Churners Churn: by Previous Access Method
• Internet Churn by Current Internet Access Method
• Video Churn by Current Video Access Method
• Decision Factors for Switching Internet Service Providers by Previous Access Methods
• Driving Factors for Switching Internet Service Providers by Gender
• Preferred Broadband Service Provider After Planned Move
• Preferred Voice Service Provider After Planned Move
• Preferred Video Service Provider After Planned Move
• First Service Provider to Call After Moving by Previous Access Methods
• First Service Provider to Call After Moving by Age
• First Service Provider to Call After Moving by Gender
• Number of Hours Spent on Activity
• Media Activities
• Penetration of Home Data Networks
• Most Valuable Applications for a Home Network (U.S.)
• Offered and Accepted Home Networking Offer from BSP: U.S.
• Offered and Accepted Home Networking Offer from BSP: Canada
• What Factors were Important in Accepting a Home Networking Offer from the Broadband ISP? (U.S.)
• What Factors were Important in Accepting a Home Networking Offer from the Broadband ISP? (Canada)
• Respondents Experiencing Security-related Maladies
• What Internet Security Solutions are Used?
• Rating Internet Providers on Responsiveness to Security Issues (U.S.)
• Rating Individual Internet Providers on Responsiveness to Security Issues (U.S.)
• Rating Internet Providers on Responsiveness to Security Issues (Canada)
• Rating Individual Internet Providers on Responsiveness to Security Issues (Canada)
• Interest in Online Storage Solution: By Weekly Multimedia Activities
• Willingness to Pay for an Online Storage Solution
• Frequency of PC Maintenance Functions
• Interest in PC Maintenance “Dashboard”
• Comcast Financial Overview
• Comcast Subscriber Base
• Comcast Internet Packages
• Time Warner Cable Financial Overview
• Time Warner Cable Subscriber Base
• Time Warner Cable: Internet Packages
• Charter Financial Overview
• Charter Subscriber Base
• Charter Internet Packages
• Cablevision Financial Overview
• Cablevision Subscriber Base
• Cablevision Broadband Packages
• Cox Financial Overview
• Cox Subscriber Base
• Cox High-Speed Services
• Rogers Financial Overview
• Rogers Subscriber Base
• Rogers High-Speed Services
• AT&T Financial Overview
• AT&T Subscriber Base
• AT&T Internet Packages with Voiceline
• AT&T Internet Packages without Voiceline
• Verizon Communication, Inc. Financial Overview
• Verizon Communication, Inc. Subscriber Base
• Verizon High-Speed Internet Packages
• Qwest Financial Overview
• Qwest Subscriber Base
• Qwest DSL Packages
• Embarq Financial Overview
• Embarq Subscriber Base
• Embarq DSL Packages
• Clearwire Financial Overview
• Clearwire Subscriber Base
• Clearwire Broadband Packages
• Sprint Financial Overview
• Sprint Mobile Broadband Packages
• Bell Canada Financial Overview
• Bell Canada Subscriber Base
• Bell Canada Broadband Packages
• Telus Financial Overview
• Telus Subscriber Base
• Telus Broadband Packages