PRESENTATION ON THE NORFOLK BUSINESS BROADBAND SURVEY TO THE CONNECTNORFOLK WORKING GROUP

1. PRESENTATION ON THE NORFOLK BUSINESS BROADBAND SURVEY TO THE CONNECTNORFOLK WORKING GROUP Presented by: CBG Communications, Inc. Thomas G. Robinson, President Philadelphia Office: 73 Chestnut Road, Suite 301 Paoli, PA 19301 610-889-7471 robinson@cbgcommunications.com CBG Communications, Inc.

2. STUDY METHODOLOGY • Random Sample (plus Targeted Sample) Telephone Survey of 400 Norfolk Businesses. • All sizes and types. • Respondents spread throughout Norfolk. • Questions on broadband adoption, availability, uses, capacity, satisfaction, providers and needs for the future. CBG Communications, Inc.

3. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

4. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

5. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

6. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

7. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

8. RESPONDING SAMPLE BY NAICS CODE CBG Communications, Inc.

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10. BUSINESS WITHOUT INTERNET ACCESS • Of the responding sample, 11% of businesses did not subscribe to the Internet. When considering those by type of business, several were food service and restaurant locations (pizza, bakery, chicken), auto repair, and retail shops (salons, barber shops). CBG Communications, Inc.

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12. BUSINESSES WITHOUT INTERNET ACCESS • Why do you not have Internet service at your business? (N=45) First Response • Internet service isn’t available 7% • I’m not comfortable using the internet 4% • My business doesn’t need internet service 38% • I don’t know how to use the internet 4% • Another company supports my internet service needs 16% • Internet is too expensive 4% • Other (N=12) 27% CBG Communications, Inc.

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14. TYPE OF INTERNET CONNECTION AT BUSINESSES CBG Communications, Inc.

15. RESPONDENTS WHO COULD NAME THEIR TYPE OF INTERNET CONNECTION, SPEED AND MONTHLY COST CBG Communications, Inc.

16. RESPONDENTS’ CONTRACTS BY SERVICE PROVIDER AND AVERAGE LENGTH • The length of broadband service contracts was reported between 1 and 10 years. The average broadband contract was 2.22 years and the most common response was 2.0 years. Verizon customers reported slightly shorter contract lengths (1.97 years) than Cox subscribers, 2.21 years. Other providers’ (T-Mobile, AT&T, XO Communications) terms were the longest at 2.88 years. CBG Communications, Inc.

17. SATISFACTION WITH BROADBAND CHARACTERISTICS AMONG NORFOLK BUSINESSES CBG Communications, Inc.

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19. BUSINESS APPLICATIONS DRIVING THE NEED FOR BROADBAND CAPACITY IN NORFOLK CBG Communications, Inc.

20. PERCENTAGE OF BUSINESSES ANTICIPATING A NEED TO ENHANCE BROADBAND ACCESS IN THE NEXT YEAR CBG Communications, Inc.

21. TOP CATEGORIES OF BUSINESSES REPORTING ADDITIONAL BROADBAND ENHANCEMENTS NEEDED IN THE NEXT YEAR • Other Services (except Public Administration) 12% • Professional/Scientific/and Technical services 12% • Administrative/Support/Waste Management/and Remediation Services 10% • Retail Trade 6% • Health Care and Social Assistance 5% CBG Communications, Inc.

22. TIMETABLE FOR ENHANCEMENT OF CURRENT HIGH-SPEED INTERNET ACCESS BY THOSE NOT EXPANDING IN THE NEXT YEAR • One to two years 30% • Three to five years 25% • More than five years 3% • Depends on business need 4% • Depends on change in technology 3% • Other 1% • Don’t Know 33% CBG Communications, Inc.

23. HOW COMPETITIVE IS THE NORFOLK BROADBAND PROVIDER MARKETPLACE? • Competitive, several options 10% • Somewhat Competitive, a handful of options 15% • Only Slightly Competitive, two providers 30% • Not Competitive at All, only one provider option 41% • There is not a broadband option available that is suitable for my business 3% CBG Communications, Inc.

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26. IMPORTANCE OF A ROBUST BROADBAND/HIGH-SPEED INTERNET ENVIRONMENT • How important is a robust broadband Internet connection to the day-to-day operations of your business? • Very Important 80% • Important 10% • Somewhat Important 6% • Not at All Important 3% CBG Communications, Inc.

27. IMPORTANCE OF A ROBUST BROADBAND/HIGH-SPEED INTERNET ENVIRONMENT • Would it be beneficial to you if the broadband/high speed Internet environment in Norfolk was enhanced for your clients or customers? • YES 74% • NO 18% • Don’t Know 8% CBG Communications, Inc.

28. OTHER KEY FINDINGS • Size of Business makes a great difference in how broadband is experienced in Norfolk. • Availability of necessary broadband is most critical to organizations engaged in construction, manufacturing, retail, supply chain, information services, real estate, education and healthcare. • Those businesses with greater sales volume see robust broadband as critical to their day-to-day operations. CBG Communications, Inc.

29. SUMMARY OF OPEN ENDED COMMENTS MADE BY BUSINESSES AT THE CLOSE OF THE SURVEY (N=126) • Need more options/competition in the City 49% • Wish had Verizon FiOS 12% • Other 7% • Newest/fastest technology not available 6% • Should be available everywhere 6% • Too expensive 5% • Want Google Fiber 4% • Happy with Broadband access 3% • Unhappy with Cox 3% • Want Hot Spots in the City 2% • Don't Know 2% CBG Communications, Inc.

30. ACTIVITIES FOR CONNECTNORFOLK TO CONSIDER • Helping develop education and training related to Broadband, especially for small businesses. • Serving as an independent clearinghouse for Broadband provider and application information for all Norfolk businesses. • Developing ideas for aggregating demand. • Continuing to help spur competition in the Norfolk broadband marketplace. CBG Communications, Inc.

31. Thank you for participating today! CBG Communications, Inc.