January - February 2016 Presented by FTTH Committee

• Since 2013 over 100 SWFL communities

have converted to fiber • Motivated by expiring bulk cable agreements and growth in bandwidth usage worldwide • Studies, provider evaluations, competitions conducted . . . etc. (Pelican Bay*: High Water Mark) *Strategic analysis of community broadband offering for Pelican Bay

• Engineering study (Spectrum) defined •

• • •

requirements . . . Fiber selected RFP to 26 suppliers 19 responses evaluated (multi-discipline) Comcast, CenturyLink & Summit – “top contenders” Detailed evaluations of top contenders

• Growing demand for increased bandwidth • Most cable installations limited by design • Fiber has inherent advantages • Much higher speed (1 Gbps) • High reliability – long life & easy to maintain • Clean signal – excellent fidelity • Buried deep and protected by conduit

“We invented the internet. We can do audacious things if we set big goals, and I think our new threshold, frankly, should be 100Mbps. I think anything short of that shortchanges our children, our future, and our new digital economy.”

• Shadow Wood doesn’t have a bulk

contract • If fiber conversion selected . . . Bulk contract has benefits: • • • •

Supports large capital investment Encourages technology investment Lower prices Community leverage to maintain performance, customer service, upgrades . . . etc.

• Summit’s Ancestry Marco Island Cable (1995) NuVu-Marco Affiliate (2011) US Metropolitan Telecom (2006) Orlando Telephone

Marco Island Bonita/Ft. Myers/Naples Commercial/Lee & Collier Orlando Area Provider

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Legacy companies brought problems (e.g. NuVu Vineyards – poor install) Over extended – Could not handle work load (Engineering, Management, Installations, Service) Professional help at Pelican Bay motivated Summit improvements Lessons learned carried forward to other communities New Management team (2014) now driving across the board process improvements . . . getting results

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Owned by Cable Bahamas – Traded on Bahama Exchange (adequate financing) Headquartered in Orlando, FL (>80K customers) Disney, Universal, City of Orlando . . . etc. Dedicated team in SWFL (>30K customers) Gated communities, NCH, Ave Maria, Collier Gov’t, Lee Co. Gov’t . . . etc. Community conversion process much improved Pelican Bay rates Summit B+ in 2015 Metrics & customer surveys are increasingly positive . Daily monitoring of contract performance

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2013 Solicited Comcast, CenturyLink & Summit (Summit was the front runner) Monitored conversions in other communities (Early problems dictated caution) Participated in “The Brooks” FTTH activities Recent meetings with 5 communities • Install Experience • Lessons Learned • Performance Metrics • Customer Satisfaction

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We’ve Watched: • Summit Performance gradually improve • New SWFL Management Team (2014) driving improvements and getting results (Product, construction, installs, service) • Lessons learned from Pelican Bay, Kelly Greens, other Brooks Communities • Customer satisfaction much improved. Real time measures.

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Detailed engineering study defines fiber routes and specific resident installs (May 2016) Fiber burial during summer months (July – Sept 2016) Duration should take less than 1 year Experienced crews committed to site until completion On-site Community Advocate

- 100 x 100 Mbps Internet Service - Cable TV Service - 1 HD Set Top Box for the main TV

Bulk Pkg

- 150 Video Channels – including 69 HD

$58/mo

- Remote TV’s (90 Channels - 10 HD) Free – no set top box - Plus 56 Music/Talk

- Fiber Directly into Home - Initial In-house Hookup – Free - 7 year Contract Term

FTTH|

Summit Proposed Pricing

Bulk Package $58/month TV Services (optional)

$/mo

2 Tuner DVR (replaces Set Top Box)

6

HD Box for Remote TV’s 5 Tuner “Synergy” DVR (enhanced platform) Cable Card Lease

$/mo

100 x 100

Bulk

250

20

12

500

30

18

1000

40

2

AC Router

10

Digi Sports

5

Digi Max & Premier

Internet Services (optional)

26

Telephone Service (Optional)

$/mo

Local unlimited

20

+ North America unlimited

30

+ Western Europe unlimited

36

Distinctive Ring

10

FTTH| Summit Proposed Pricing Premium Channels (optional)

$/mo

HBO

20

Starz/Encore

20

Cinemax

17

Showtime

17

4 Movie Pkg

68

Playboy

16

TV Latino

13

Deutsche Welle

10

Vacation Hold Charges

$/mo

Cable Card

1 / card

HD Box (Remote)

2 / Box

DVR

2 / Box

Re-Activation Fee

5 / Box

Telephone Telephone Re-Activation Fee in excess of 1 per year

6 30

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Survey of Summit product meetings (continue the process) Establish SWCA bulk contract requirements (Product, Performance, Ownership, SLA’s, Technical Updates, Pricing, Term, Etc.) Negotiate contract baseline with Summit Brief community on proposed contract Community vote Board decision

01-22-16 early February

mid February early March

mid March early April

Question

Answer

1. Voting

Yes (67% hurdled)

2. Fiber Ownership

Option to own

3. Summit a. Operations Issues

Contract & SLA’s

b. Financial Concerns

SWCA Finance Committee

c. Change of Control

Contract Protection

4. Internet Streaming replaces CATV content

High Speed Internet is Key. Fiber is the best solution

5. Channels

Almost identical

6. VOD and Recording capability

Similar

7. Why Now?

Summit’s ops performance has improved

8. Is it better than Comcast X-1 Platform

No, Synergy platform in the spring

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SWFL communities are converting to Fiber To The Home. It’s all about high speed internet Summit Broadband is currently the preferred provider Schedule window for Shadow Wood – Summer 2016 SWCA has completed due diligence and will establish a contract baseline Baseline will be briefed in support of community vote